Industrial Production: Hard Data Rebound

Bottom Line: The Federal Reserve's industrial production report for April showed a better rebound in activity than many of the manufacturing surveys suggested. Auto production led the gains, jumping over 9% on the month, while food- and beverage-related production led the nondurable segments. Overall, the report painted a modestly better picture than the survey data in April, though the early surveys for May show a renewed decline. Nonetheless, the report offers hope for stabilization in manufacturing and the potential for a modest rebound later this year, especially in the auto sector, where demand remains moderate, and manufacturers continue to work through supply and technological bottlenecks as they ramp-up production of electric vehicles.