U.S. Manufacturing Output Rebounds in Q1, Growth Extends Beyond AI Sector

Deep News04-17 01:50

Following a period of weakness at the end of 2025, U.S. manufacturing output rebounded in the first quarter, with the growth expanding beyond the artificial intelligence sector. Data released on Thursday by the Federal Reserve showed that manufacturing output, excluding high-tech industries such as computers and semiconductors, increased at an annualized rate of 2.8%. This represents one of the strongest growth rates since 2021, when the economy was recovering from the pandemic.

The Federal Reserve's data indicated that sectors including machinery, automobiles, mineral products, and electrical equipment all achieved significant output growth in the first quarter. Despite new uncertainties for manufacturers, such as rising input costs due to the Iran conflict, the manufacturing sector is showing signs of recovery. As trade policy uncertainties ease and businesses take advantage of favorable tax policies, capital expenditure is likely to remain strong this year. In March, manufacturing output declined by 0.1%, primarily dragged down by weak auto production. Excluding automobiles, manufacturing output saw a slight increase of 0.1%, marking the third consecutive month of growth.

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