WASHINGTON — Retail sales rose in April for the seventh straight month, factory production surged and businesses restocked their shelves. The trio of government reports Friday pointed to an economy that's improving modestly but steadily.

Consumers drove retail sales up 0.4 percent last month. The gain was less than the 2.1 percent growth in March. But that surge was boosted by an early Easter holiday and auto incentives.

Shoppers are closely watched because their spending accounts for 70 percent of economic activity.

It rose in the first three months of this year at the fastest pace in three years, according to the Commerce Department report. As employers ramp up hiring, spending could rise further in coming months.

Industrial production also rose in April, posting an 0.8 percent gain. Factories, the biggest slice of industrial activity, ratcheted up output by a brisk 1 percent for a second straight month, the Federal Reserve report showed. Manufacturers have played a leading role in powering the recovery. They are boosting production because companies are starting to restore their depleted stockpiles of goods.

As evidence of that trend, business inventories grew for a third straight month in March, Commerce said in a separate report. Inventories rose 0.4 percent. And total business sales gained 2.3 percent — the sixth straight increase and the best showing in four months.

A diverse group of manufacturing sectors reported gains in production in April.

They included metal products and machinery, appliances, furniture and carpeting, and chemicals and plastics.

"The manufacturing recovery is getting more diffuse, with 17 of 19 major sectors increasing production," said David Huether, chief economist at the National Association of Manufacturers. "It looks more durable and deeper."

Though the retail sales gains suggest a sustained recovery, some analysts sounded a cautionary note. They think the rebound will remain weaker than previous recoveries because of obstacles weighing on households.