The COVID-19 pandemic posed myriad challenges for the industrial sector, disrupting supply chains and productivity. However, the solid progress on the vaccination front and economic activities regaining traction are helping the industrial sector to generate stable growth. Total industrial production in the last month increased 1.1%, marking the fourth consecutive month of gains of 0.8% or greater. Total industrial production in April was 6.4% above its year-ago level; manufacturing output was up 0.8%, while capacity utilization climbed to 79%.
In addition, acceleration in the adoption of digital technology, the remaking of supply chains, and advancing sustainability practices are all expected to bolster the sector’s growth. Also, major funding by the Biden administration to ease supply chain constraints should drive productivity growth.
