US manufacturing output accelerates on auto production in April

U.S. factory production accelerated in April as motor vehicle output surged, suggesting underlying strength in manufacturing, though supply disruptions from the war with Iran are casting a shadow over the sector.

Manufacturing output increased 0.6% last month after an upwardly revised 0.1% gain in March, the Federal Reserve said on Friday. Economists polled by Reuters had forecast production at factories rebounding 0.2% after a previously reported 0.1% dip in March. Production at factories advanced 1.3% on a year-over-year basis in April. Motor vehicle output increased 3.7%.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)