United States automotive production fell 4.3% in April

United States automotive production registered a 4.3% month-on-month drop in April, the Federal Reserve reported on Friday.

Within this result, the production of motor vehicles decreased 5.6 percent.

Meanwhile, the production of auto parts had a contraction of 3.1 percent.

At the beginning of the year, industrial production continued to rise solidly in January, but then fell sharply in February, largely due to declining production from the manufacturing and mining sector triggered by the severe winter in the south-central region of the country a the middle of that month.

Along with severe weather, a cut in motor vehicle and parts production also reflected a global shortage of semiconductors.

Subsequently, new order rates in national and regional manufacturing surveys pointed to robust increases in factory output in the coming months, although reports of material and labor shortages, as well as transportation bottlenecks, pointed to some potential constraints on the pace of the manufacturing recovery.

Against this background, US automotive production presented a 9.9% drop in February 2021 and then a 3.8% growth in March, at month-on-month rates.

Automotive production

In April, the US industry had an advance of only 0.7% monthly (m / m) that was favored by a rise of 2.6% m / m in utilities since the rest of the industrial groups had a weak performance.

Monex highlighted the variation of + 0.4% m / m in manufacturing, since in the interior there was a new fall in the automotive sector (-4.3% m / m) due to the shortage of microcomponents that could not be resolved and that has led multiple companies to cut their production.

In the annual comparison, however, the statistics for industry and manufacturing had strong growth of 16.5% and 23.0% due to the fact that it was in April 2020 that the activity collapsed due to the confinements.