"A positive backdrop that includes firm domestic and external demand, tax cuts and a less restrictive regulatory, higher energy prices and a still weak USA dollar are expected to underpin average annual industrial production growth of 4.2% in 2018, much stronger than the 1.6% gain recorded a year ago", he said.
Industrial production grew 0.7% in April, the Federal Reserve reported Wednesday. That marked the third straight month of higher production.
Total industrial capacity in use in the month rose to 78 per cent, the highest since March 2015 but still almost two points below the long-run average, the Fed said.
USA industrial production rose slightly faster than expected in April, a third straight monthly increase that was supported by gains in every major market group.
In particular, at up by 0.5% month-on-month, manufacturing production beat their projection for a dip of 0.1%, although offsetting weakness in the output of utilities meant that their tracking estimate for second quarter gross domestic product was unchanged at up by 3.0%. Factory output has increased 1.8% over the past year.
Production of industrial machinery jumped 2.3 percent in April, the most in seven months.
A broader measure of industrial production, which includes mining and utilities, rose 0.7 percent. Mining output surged 10.6% from a year earlier.
Mines increased output 1.1% in April, largely reflecting renewed drilling for oil and natural gas. Unusually cold weather in April boosted demand for heating.