03:17 PM EDT, 05/16/2024 (MT Newswires) -- US industrial production was flat in April versus market expectations for a gain as manufacturing output posted a surprise decline, according to Federal Reserve data published Thursday.

Industrial output was unchanged last month following a downwardly revised 0.1% increase in March, the Fed said. The consensus was for a 0.1% rise in a survey compiled by Bloomberg. Annually, industrial production fell 0.4% in April.

Among major industry groups, manufacturing output decreased by 0.3% last month -- its first drop since January -- after rising by 0.2% in March. The consensus was for a 0.1% increase. Durable manufacturing output declined 0.5% while the index for nondurables fell 0.1%, according to the Fed report.

Within durables, motor vehicles and parts slipped 2%, while electrical equipment, appliances, and components dropped 1.9%. Primary metals, computer and electronic products, and aerospace and miscellaneous transportation equipment reported gains.

Among nondurables, petroleum and coal products output fell 4.4%, while all other categories saw increases, according to the report.

Mining output dropped 0.6% amid an 18.1% plunge in coal, while utilities gained 2.8%. Capacity utilization inched lower to 78.4% from 78.5% month-to-month in April, according to Fed data.

Oxford Economics expects 2024 industrial production to rise 0.5%, more than doubling last year's pace. "High-tech manufacturing sectors will benefit from several tailwinds such as cloud computing and policymakers' pivot toward industrial policy," Lead US Economist Bernard Yaros said in a note.

Industrial output is likely to pick up pace next year as the central bank's Federal Open Market Committee starts easing its monetary policy, bank lending conditions become "more favorable, and the dust from the 2024 election settles, providing relatively more policy certainty for businesses," Yaros said.