Factory production u.s. Up in March with more than expected, marking the third consecutive month of the increase that shows a stable progress for producers to the background gradually improve the supply chain.

An increase of 0.9% following a 1.2% increase in February, the Federal Reserve data showed Friday. The total industrial production, which also includes output mining and utilities, also rose 0.9% during the month and profit in February revised.

Manufacturing output increased at an annual rate of 5.4% in the first quarter. The total production grew 8.1% annually, which was strongest since the end of 2020.

The utilization of capacity at the factory rose to 78.7%, the highest since 2007, from 78.1% a month earlier. Pick up level, which has risen by almost 18 percentage points from April 2020, shows more successful manufacturers fill open positions that will enable the company to make progress on the backlog.

The growth of orders is still firm, assisted by solid business investment, remains a source of strength for domestic producers. Sharp pickup in motor vehicle assemblies show pressure in the supply chain continues to subside.

At the same time, the cost of soaring material continues to complicate the recovery of the industry. Progress in the supply chain can also be limited in part by Russian War in Ukraine and locking related to strict pandemic in Chinese regions representing new risks.

“The growth of industrial production will remain optimistic even though the recovery has moved away from utilizing the request of goods,” Oren Keachkin, leads to economists at Oxford Economics, saying in a note. “Business continues to invest despite a surge in geopolitical risk and economic uncertainty.”

Quicking in March is extensive manufacturing output and includes a 7.8% surge in motor vehicle production. Assemblies rose to 9.75 million annual units, most since January last year. Not including autos and parts, factory output increased 0.4%.

The report also showed business equipment output jumped 1.8% in March, matching the increase and indication of the previous month’s company still had trust in economic prospects.

Machines, electrical equipment and equipment, Dirgantara makers and wood products are one of the other manufacturing categories that show production benefits. Output goods that cannot last long driven by increased petroleum, chemicals and plastic.

The Fed report showed a 0.4% increase in utility output and a 1.7% increase in mining. Oil and gas well drilling rose 4.8% another and rose 53.7% from the previous year.