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Industrial production rose 0.7% in April, while manufacturing output advanced 0.6% after ticking up 0.1% in March. At 97.9% of its 2017 average, manufacturing production increased 1.3% from April 2025. Capacity utilization for manufacturing was 75.8%, up 0.4 percentage points from March and 1.1% over the past year. Capacity utilization remained 2.4 percentage points below its long-term average from 1972 to 2025.

In April, production for most major market groups improved. Consumer goods production climbed 0.9%, while business equipment output jumped 1.5%. The growth in consumer durables (up 1.2%) was led by the output of automotive products rising 2.2%. Meanwhile, the index for consumer nondurables moved up 0.9%, led by an increase in the index for energy (up 2.6%). Among business equipment, the 4.2% jump in transit equipment output led the advance. At the same time, the index for materials rose 0.5%, while the index for construction supplies stayed the same and the index for business supplies ticked up 0.3%.

Durable goods manufacturing surged 1.2% in April and 3.2% from the year prior. The largest monthly gain occurred in motor vehicles and parts (up 3.7%), while furniture and related products registered the largest decline (down 1.8%). Meanwhile, led by a 2.2% decrease in apparel and leather production, nondurable manufacturing edged down 0.1% in April and 0.6% from April 2025.

The Producer Price Index for final demand (also known as wholesale prices) rose 1.4% over the month in April, up from the 0.7% increase in March. Over the year, producer prices jumped 6.0%, up from 4.3% in March and the largest 12-month increase since December 2022. Meanwhile, prices for final demand excluding foods, energy and trade services advanced 0.6% over the month in April after ticking up 0.2% in March. Prices for these goods climbed 4.4% from April 2025, the largest yearly increase since February 2023.

Within final demand, prices for services jumped 1.2% in April, the largest monthly increase since March 2022, after inching up 0.2% in March. Meanwhile, prices for goods soared 2.0% in April, after moving up 1.9% in March. Within the final demand services index, margins for machinery and equipment wholesaling rose 3.5%, a major factor in the monthly advance for this index. Within the final demand goods index, prices for gasoline surged 15.6%, accounting for over 40% of the April increase. At the same time, prices for nonferrous metals fell 0.3% from March but were still up 35.6% from April 2025.

Prices for processed goods for intermediate demand rose 2.7% in April, the sixth consecutive increase, after moving up 2.8% in March. Within the index, prices for diesel fuel jumped 12.6%, accounting for nearly a quarter of the April increase, after soaring 42.1% in March. Meanwhile, prices for primary nonferrous metals and secondary nonferrous metals were up 82.1% and 38.1% year-over-year, respectively. Over the year, prices for processed goods for intermediate demand rose 9.4%, the largest annual increase since October 2022.

Meanwhile, prices for unprocessed goods for intermediate demand climbed 4.1% in April, the sixth straight advance, after increasing 1.8% in March. Nearly 75% of the monthly rise was attributed to an 11.3% surge in crude petroleum prices, which are up 61.8% over the year. In contrast, prices for nonferrous scrap fell 4.4% in April but rose 27.9% from April 2025. Over the year, prices for unprocessed goods for intermediate demand soared 20.9% after moving up 12.5% in March.

In April, consumer prices increased 0.6% from March and 3.8% over the year, up from the 3.3% annual rise in March and the greatest over-the-year increase since May 2023. Core CPI, which excludes more volatile energy and food prices, rose 0.4% from March and 2.8% over the year, up slightly from the 2.6% 12-month increase the month prior.

Energy costs climbed 3.8% over the month in April, after jumping 10.9% in March. Over the year, energy costs surged 17.9%, after increasing 12.5% year-over-year in March. Within the energy index, gasoline prices rose 5.4% in April and 28.4% over the year, while fuel oil prices surged 5.8% month-over-month and 54.3% year-over-year. Meanwhile, electricity prices grew 2.1% in April and 6.1% from April 2025, while natural gas prices edged down 0.1% over the month but were still up 3.0% over the year.

In April, food prices advanced 0.5% over the month and 3.2% over the year, up from the 2.7% year-over-year advance in March. Prices for food at home increased 0.7% from March and 2.9% from April 2025, while prices for food away from home moved up 0.2% month-over-month and 3.6% year-over-year. Of the different food groups, beef and veal, coffee and fresh vegetables rose at the fastest pace, surging 14.8%, 18.5% and 11.5% over the year, respectively.

The shelter index climbed 0.6% from March and 3.3% over the year, up from the 3.0% annual gain in March. Meanwhile, prices for used cars and trucks stayed the same over the month but declined 2.7% over the year, while new vehicle prices ticked down 0.2% over the month but inched up 0.2% from April 2025. Relatedly, prices for motor vehicle maintenance and repair fell 0.2% month-over-month but advanced 5.1% year-over-year.

The headline inflation rate is still well above the Federal Reserve’s target of 2.0% and continues to rise from its 2025 lows, with increased pressure from the war in the Middle East. Federal Reserve officials held their interest rate target steady at their April meeting, and markets that the Federal Open Market Committee will keep its interest rate target unchanged again at the meeting next month as risks to the Federal Reserve’s inflation mandate rise.

Washington, D.C. – Following the release of surface transportation reauthorization bill text by House Transportation and Infrastructure Committee Chairman Sam Graves and Ranking Member Rick Larsen, 51�Թ��� Executive Vice President Erin Streeter released the following statement:

“Chairman Graves and Ranking Member Larsen understand the importance of modern, reliable infrastructure to strengthening manufacturing in the United States, creating more jobs and keeping our country globally competitive. The highway bill released today reflects the needs of America’s manufacturers, including tremendous progress toward comprehensive permitting reform, and our industry looks forward to working with the committee to quickly advance this vital legislation.

“Highway congestion and port delays alone are costing manufacturers nearly $40 billion annually and freight delays account for 65 million hours of lost efficiency each year. By passing a robust surface transportation reauthorization bill and bipartisan, comprehensive permitting reform this year, Congress can take a major step forward to reduce congestion, improve reliability, and empower manufacturers to make and move products that reach millions worldwide—supporting communities here at home.”

Background

As Politico first reported in April, the on Congress to make the next surface transportation reauthorization a robust $600 billion investment.

In February, the 51�Թ��� launched “Building to Win,” a national campaign urging Congress to pass robust infrastructure investments and reauthorize critical federal highway programs. As part of the campaign’s launch earlier this year, the 51�Թ��� released a roadmap outlining four pillars for a robust surface transportation reauthorization:

• Continuing robust investment levels for federal infrastructure,��including by developing long-term solutions for Highway Trust Fund solvency
• Strengthening supply chains across transportation modes
• Investing in��water infrastructure that will support manufacturing��growth��and public health
• Reforming burdensome permitting laws and regulations to ensure federal infrastructure investments are made efficiently and responsibly

The 51�Թ���’s policy roadmap also features original analysis:

• The 51�Թ���’s analysis shows that highway congestion costs manufacturers��more than��$25 billion��annually��and results in��over��65 million hours of delays��in freight carrying finished goods and critical inputs��each year.
• The analysis also visualizes, through a new map, key logistics nodes intersecting with the nation’s 25 worst freight bottlenecks, revealing��more than 2 million hours of annual delays��incurred and faced by manufacturers.
• In addition, the 51�Թ��� estimates that congestion at container and bulk��ports��cost manufacturers��more than $13 billion��annually��in carrying costs and demurrage charges.

In March, the 51�Թ��� and the Foundation for American Innovation released a report��showing America’s broken permitting system costs manufacturers in America at least $7.9 billion each year.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.96 trillion to the U.S. economy annually and accounts for nearly 52% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

51�Թ���: Sen.��Daines,��H.R. 1��permanently extended the Section 199A pass-through deduction, preventing the substantial tax increase that would have hit small manufacturers at the start of 2026. You have been among the Senate’s most persistent champions of pass-through businesses since the��Tax Cuts and Jobs Act��was enacted. What does achieving permanency mean for small manufacturers in Montana and across the country?��

Sen. Daines: Our small businesses and manufacturers are the backbone of our country’s economy, driving growth and investment across states like Montana. Since I entered Congress, I prioritized the need to protect this industry and warned of what a less competitive America looks like.��

I championed the small business deduction in 2017, and last year,��I led the charge on making sure this��and other pro-growth provisions��became permanent. Clarity and certainty are two of the most important things these job creators need to be as successful as��possible,��and��making 199A permanent delivered both.

51�Թ���: You introduced the Main Street Tax Certainty Act specifically to make the 199A deduction permanent.��H.R. 1��accomplished that goal. How did your legislation and sustained advocacy help build the political and policy case for permanency in the reconciliation package, and were there particular provisions in the final bill—beyond the basic permanency—that reflect your priorities for pass-through manufacturers?��

Sen. Daines:��As important as it was to make sure this provision was included in 2017, it was imperative we avoided the steep tax increase small businesses and manufacturers faced if we let this expire. Since the day the��TCJA��was signed into law, we pushed to make this provision permanent. Businesses from every state came in and helped us tell the story of what this means for them. When the time came to draft the Working Families Tax Cuts, the Main Street Tax Certainty Act was one of the most co-sponsored bills in the Senate. We had��nearly all��Republican senators on that bill advocating for its inclusion in final passage, and we achieved exactly that.

51�Թ���: The Senate Finance Committee conducted detailed working group discussions ahead of��H.R. 1. What arguments proved most decisive in the Senate debate over 199A permanency, and are there remaining gaps or unresolved issues in the tax treatment of pass-through manufacturers that you believe should be addressed in future legislation?��

Sen. Daines: Good policies are easy to defend, and the economic data behind 199A spoke for itself. Pass-through businesses employ more than half of private–sector��workers,��[and]��more than 96% of businesses in our country are organized as pass-throughs. The deduction itself is��directly responsible��for 2.6 million jobs and��$325 billion��of the United States’ GDP. Many of these businesses are manufacturers who are the backbone of our competitiveness. A successful manufacturing industry supports the American economy and helps protect us against foreign adversaries.

51�Թ���: Manufacturers appreciate your passion and persistence in securing the 199A deduction for the long term. What can our members do to help ensure the benefits of this provision reach every small manufacturer across the country?��

Sen. Daines: We can see economic data and how policies will broadly��operate, but hearing firsthand from businesses��[that]��have��utilized��those policies to reinvest and grow makes all the difference. We���ɴdzܱ����’t��have been able to get��nearly our��entire conference onto the Main Street Tax Certainty Act if we���徱���’t��have stories from each state to point to.

Washington, D.C. –��Following the Environmental Protection Agency’s decision to issue new guidance clarifying the agency’s review process of Clean Air Act title V permits, 51�Թ��� President and CEO Jay Timmons issued the following statement:

“Manufacturers consistently��cite Clean Air Act permits��as among the most burdensome and unpredictable approval processes they face. With this action, the EPA is taking an important step toward modernizing and streamlining a permitting system that too often delays investment and growth,��while maintaining environmental protections.

“For too many projects, our permitting system has delayed routine investments with duplicative reviews and unnecessary uncertainty. This new guidance will help ensure EPA and state permit reviews move forward efficiently while preserving opportunities for public input and maintaining appropriate emissions controls. That means manufacturers can move more quickly to break ground on new projects, invest in new technologies and strengthen the energy and industrial infrastructure American communities rely on.

“The EPA continues to act with urgency to modernize a broken permitting process costing manufacturers at least��$7.9 billion��every year.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.96 trillion to the U.S. economy annually and accounts for nearly 52% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit��.��

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

��Manufacturers’ Stories Highlight Advantages of Landmark Trade Agreement, Illustrate the Need for Improvements Ahead of North American Manufacturing Conference

Washington, D.C. – As manufacturers, policymakers, congressional leaders and business leaders across North America��convene in Washington, D.C., for the North American Manufacturing Conference today, a new report released by the 51�Թ�����underscores the United States–Mexico–Canada Agreement as a foundation for manufacturing dominance in the U.S.—the most pro-U.S. manufacturing trade agreement in history, with exports to Mexico and Canada already supporting 2 million American jobs. With targeted improvements to this agreement, the USMCA can deliver even more jobs, growth and innovation across the sector.

The report, “Built to Spec: USMCA Supports Millions of American Jobs and Drives U.S. Manufacturing Dominance,” illustrates manufacturers’ stories on how much the USMCA has benefited manufacturing in the U.S. The report combines these stories with data on the depth of North American manufacturing integration. The U.S., Mexico and Canada account for 30% of global GDP.

Since the USMCA was ratified, 15 out of 18 manufacturing sectors have increased exports to Canada and Mexico. Companies across the manufacturing sector have boosted investment and expanded hiring. Rheem Manufacturing said capital investments nearly quadrupled to $100 million following negotiation of the agreement, while Thermo Fisher Scientific recently announced a $2 billion U.S. investment that includes $1.5 billion to expand U.S. manufacturing operations. Manufacturers are also creating jobs and growing their workforce, with Amphenol Corporation noting it has “more jobs across our factories in the U.S. today than we had five years ago,” and Humtown adding “machines and personnel” to support increased exports to Canada and Mexico.

The landmark agreement also strengthened customs procedures, harmonized regulations, increased protections for intellectual property rights and delivered other pro-manufacturing improvements—making North America the most attractive region to manufacture and driving real gains for America’s manufacturers.

“The USMCA is a proven engine for America’s manufacturing strength, ensuring that more products bear the imprint ‘Made in America,’” said 51�Թ��� President and CEO Jay Timmons.�� “Under President Trump’s signature trade agreement, manufacturers have moved production and investments away from Asia to the United States and the rest of the North American market. This report shows that the USMCA has been an anchor for manufacturing investment and expansion in the U.S.—supporting job creation and export growth to the region.

“In his first term, President Trump asked manufacturers to support the USMCA, and we have been proud to do so every step of the way. We partnered with the president and Congress to drive the USMCA into law and supported the negotiations to deliver a winning deal for the American people. We kept our promises to use the USMCA’s provisions to fortify the American supply chain, power more American jobs and drive more American growth. Now is our chance to double down on behalf of the American people. Let’s preserve the USMCA, strengthen it and lead with it—creating more jobs and expanding production for the United States.”

The report features testimonials from manufacturing companies across different manufacturing sectors, including CNH, Unicorr, Advanced Superabrasives Inc., Brunswick Corporation, Dragonfly Energy, American Textile Company, Amphenol Corporation, Hydro, Thermo Fisher Scientific, Dauch Corporation and more. Regardless of type or size, these companies cited clear examples of the USMCA’s advantages to manufacturers:

• Flexibility and speed through proximity
• Access to critical manufacturing inputs
• A unique co-production model that leverages regional assets
• Access to greater sales across North America and the world
• A larger talent pool to address workforce shortfalls in the U.S.
• Resiliency against global tensions

“The results are clear: the USMCA strengthens U.S. manufacturing in the face of threats from fierce global competitors. We can maximize these advantages—putting America’s manufacturers first—by preserving the USMCA while implementing impactful reforms. Because a stronger USMCA means a stronger America.”

Read the full report here.

Read the one-pager here.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.96 trillion to the U.S. economy annually and accounts for nearly 52% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit .

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

51�Թ���: Rep. Miller, H.R. 1 has been signed into law, preserving the 21% corporate tax rate established by the 2017 Tax Cuts and Jobs Act. As the leader of the House Ways and Means Supply Chain Tax Team leading up to the bill’s passage, what does preserving this rate on a permanent basis mean for manufacturers’ ability to invest in American supply chains and compete globally?

Rep. Miller: Tax certainty is essential to maintaining the United States’ position as a global leader in manufacturing. The Working Families Tax Cuts will deliver meaningful relief to American manufacturers, driving the development of new facilities, the creation of jobs and increased investment across the country. The Ways and Means Supply Chain Tax Team focused on advancing pro-growth policies to fuel long-term economic prosperity. Key provisions in the legislation—including permanent research and development expensing, full immediate expensing, a strengthened interest deduction and a 100% factory construction deduction—provide businesses with the certainty and incentives needed to plan, invest and compete globally.

51�Թ���: With the 21% corporate rate now secured through H.R. 1, U.S. manufacturers have a more competitive tax foundation than they did even a year ago. But the global tax landscape continues to shift, with major trading partners and competitors making their own adjustments to attract investment and manufacturing activity. From your vantage point leading the Supply Chain Tax Team, how has that preservation of the 21% corporate rate bolstered the United States’ position in promoting and attracting investment?

Rep. Miller: The preservation of the 21% corporate rate is critical in promoting American manufacturing because companies can invest in expanding infrastructure, purchase new equipment and increase workforce without tax liability uncertainty. The Working Families Tax Cuts compounded with bonus depreciation and immediate research expensing have proved to be effective for the industry, and we will continue to advocate for pro-growth policy, which leads to new markets and more opportunities.

51�Թ���: Your Supply Chain Tax Team has traveled the country meeting with manufacturers since the TCJA was enacted. Now that H.R. 1 is law, what are businesses in your district or on your tax team’s radar telling you about specific investments or hiring decisions they are making or accelerating because the 21% corporate rate is no longer at risk?

Rep. Miller: The real-world impact of the Working Families Tax Cuts has been clear and meaningful, reinforcing the need for stable, pro-growth tax policy to help American manufacturers succeed. In my home district, we’ve seen these policies translate into new factories, new jobs and expanded opportunities. Companies like Conn-Weld Industries and Ferroglobe have used this tax relief to invest in their operations, grow their businesses and strengthen the local economy.

51�Թ���: Thank you for your leadership in protecting manufacturers through H.R. 1. What should 51�Թ��� members be doing now to help communicate the benefits of the 21% corporate rate and to support continued pro-manufacturing tax policy?

Rep. Miller: 51�Թ��� members should share their stories and voice their support for the Working Families Tax Cuts and communicate the real-world impact this legislation has on the country, their business and the employees and their families who benefit. Manufacturers are at the core of our economy and need a predictable and pro-growth tax code.

In April, growth in global manufacturing activity strengthened from March, increasing from 51.3 to 52.6. Output and new orders both grew as the rate of manufacturing production growth hit a nearly five-year high. Meanwhile, lead times continued to slow, lengthening to the greatest extent since August 2022. Employment declined slightly for the second consecutive month, and inventory levels rose as firms prepared for anticipated supply chain disruptions and further cost increases.

Taiwan, Japan, Ireland and India had the highest PMI readings in April. On the other hand, Mexico, Russia and Turkey were some of the larger nations to register declines in activity. The accelerating growth in manufacturing production occurred across consumer, intermediate and investment goods.

Meanwhile, input and output price pressures continued to surge as output prices rose at the sharpest rate since June 2022. At the same time, business optimism remained depressed amid rising cost pressures and supply chain disruptions. Geopolitical uncertainty continued to weigh on sentiment as input costs rose at one of the fastest rates in the 28-year survey history.

Job openings for manufacturing rose by 19,000 to 462,000 in March. At the same time, the February job openings level of 443,000 was revised upward from 439,000 in the previous report. Nondurable goods job openings in March increased 10,000 to 162,000, while durable goods job openings moved up 9,000 to 300,000. The manufacturing job openings rate inched up to 3.5% from 3.4% in February and 3.0% the previous year. The rate for nondurable goods manufacturing ticked up 0.2 percentage points to 3.3% and 0.1 percentage point to 3.7% for durable goods manufacturing.

In the larger economy, the number of job openings stayed relatively stable at 6.9 million, a decline of just 56,000 from February and 86,000 from the previous year. The job openings rate edged down to 4.1% from 4.2% in both February and March 2025. This data reflects an overall labor market that has eased back to pre-pandemic levels, but remains relatively tight from a historical perspective.

The number of hires in the overall economy jumped 655,000 to 5.6 million in March and 221,000 from the previous year. The hires rate for the overall economy increased 0.4 percentage points in March to 3.5%. Meanwhile, the hires rate for manufacturing climbed to 2.5% from 2.2% in February and 2.4% in March 2025. The hires rate for durable goods ticked up 0.1 percentage point to 2.1%, while the hires rate for nondurable goods jumped 0.5 percentage points to 3.1%.

In the larger economy, total separations, which include quits, layoffs, discharges and other separations, rose 356,000 from February to 5.4 million and 90,000 from the previous year. The total separations rate inched up 0.2 percentage points to 3.4% for the overall economy but edged down 0.1 percentage point for manufacturing to 2.2%, down from 2.5% the year prior. Within that rate, layoffs and discharges decreased by 9,000 in March for manufacturing, while quits rose by 3,000. The quit and layoff rates continued to remain lower for manufacturing than the total nonfarm sector.