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6mo ago

U.S. Industrial Output Jumps 0.7% in January as Factories Post 11-Month High

Capacity use remains below its long‑run norm.

A worker welds a steel tube at HCC, a company that uses parts to make combines, at the factory in Mendota, Illinois, U.S., February 21, 2025. REUTERS/Vincent Alban
HOWELL, MICHIGAN - SEPTEMBER 17: Vice President JD Vance speaks during a visit to Hatch Stamping on September 17, 2025 in Howell, Michigan. Vance spoke about tax cuts that were passed by Congress this year and how they would benefit businesses and families. (Photo by Bill Pugliano/Getty Images)

Overview

  • Total industrial production rose 0.7% in January, exceeding forecasts for a 0.4% increase.
  • Manufacturing output increased 0.6%, the strongest monthly gain since February 2025, with broad advances in durables and nondurables including machinery, computer and electronic products, and motor vehicles and parts.
  • Capacity utilization edged up to 76.2% from 75.7% in December, remaining 3.2 percentage points under its long‑run average.
  • Utilities production climbed 2.1% on cold weather effects, while mining output slipped 0.2%.
  • On a year‑over‑year basis, industrial production rose about 2.3% and factory output about 2.4%, even as businesses flag higher costs from tariffs and elevated interest rates and the sector lost more than 80,000 jobs in 2025.