April 15 (Bloomberg) -- Manufacturing production in the U.S. accelerated in March as factories spearheaded the recovery from the worst recession since the 1930s. Output at factories climbed 0.9 percent after a 0.2 gain in February that was revised from a previously estimated decline, Federal Reserve figures showed today. Warmer weather caused utility use to drop by the most in four years, limiting the overall gain in industrial production to 0.1 percent, less than anticipated.
Companies may keep rebuilding depleted inventories and investing in new equipment as global demand rises, one reason why producers like Intel Corp. see better times ahead. Payrolls will probably climb further as factories ramp up, helping drive consumer spending.
“Manufacturing is doing pretty well, it is still very much in the lead,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “The momentum is carrying on into the second quarter as well. Capital spending, which was already strong at the end of the 2009, is continuing into this year, and that’ll support the recovery.”
Other reports showed manufacturing in the New York region expanded in April at a faster pace than anticipated, while jobless claims unexpectedly rose last week.
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