Manufacturing Output Disappoints as Labor Crunch and Materials Shortages Bite 14 May 2021 Factory output in the U.S. was just a fraction of what economists expected in April as manufacturers lost employees and faced shortages of semiconductors and raw materials. Manufacturing output rose just 0.4 percent in April, compared with expectations for a 1.8 percent gain, the Federal Reserve said Friday. Somewhat offsetting the disappointing April figure was an upward revision for March, from 2.7 percent to 3.1 percent. Employment in manufacturing fell by 18,000 in April as jobs grew far slower than expected. Many businesses and a growing number of economists believe that enhanced unemployment benefits, which pay out-of-work Americans an extra $300 per week, are holding back employment.