US Factory Output Stalls, Missing Forecasts

Industrial production in the US was unchanged in August after increasing 0.2% in July, falling short of market expectations for a 0.3% rise. Manufacturing output, which accounts for around 78% of total industrial production, declined 0.3%, ending a seven-month streak of consecutive increases. Mining activity edged up 0.1%, while utilities output climbed 1.8%. The increase in utilities was driven by stronger electric utility production, which more than offset a decline in natural gas utilities. Capacity utilisation was unchanged at 76.3%, remaining 3.1 percentage points below its long-run average for 1972–2025.

Industrial production in the United States increased by 0.2% in July 2026, falling short of market expectations for a 0.3% rise, following an upwardly revised 0.3% increase in June. Manufacturing output, which accounts for about 78% of total industrial production, went up 0.2% in July after rising 0.3% in June, in line with forecasts. Manufacturing output excluding motor vehicles and parts increased 0.4%. Mining production increased by 1.3%. Meanwhile, mining output grew 0.2%, and utilities output rose 0.5%, with similarly sized increases in electric and natural gas utilities. Capacity utilization edged up to 76.3%, a rate that is 3.1 percentage points below its long-run (1972–2025) average.

US industrial production rose 0.1% month-over-month in June 2026, matching May’s pace but falling slightly short of the 0.2% market forecast. Manufacturing output remained flat, as a 0.1% decline in durable goods, led by drops in wood products, nonmetallic mineral products, machinery, and electrical equipment, offset a 0.2% gain in nondurables, driven by a 2.1% surge in petroleum and coal production. Mining and utilities each increased by 0.4%, with electric utilities’ gains outweighing a decline in natural gas. For Q2 2026, industrial production expanded at a 4.0% annualized rate.