US Factory Output Recovers Slightly as Forecast

2026-10-16 13:20 By Luisa Carvalho 1 min. read

US manufacturing output rose by 0.3% month-over-month in September 2026, after a downwardly revised 0.2% decrease in August and matching market forecasts.

Durable manufacturing output edged up 0.1% in September, with gains of at least 1% in primary metals, machinery, and electrical equipment, appliances and components.

These increases were partly offset by a 3.0% decline in motor vehicles and parts.

Nondurable manufacturing output rose 0.4%, led by growth in printing and support activities and chemicals.

On a yearly basis, manufacturing production rose by 1.1%, after a 0.9% increase in August.

In the third quarter, manufacturing output grew by 0.7%, supported by a 3.8% increase in durable goods production, which was boosted in part by a 28.4% surge in semiconductors and related electronic components.

In contrast, nondurable goods production declined by 1.6% over the same period.



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US Factory Output Recovers Slightly as Forecast
US manufacturing output rose by 0.3% month-over-month in September 2026, after a downwardly revised 0.2% decrease in August and matching market forecasts. Durable manufacturing output edged up 0.1% in September, with gains of at least 1% in primary metals, machinery, and electrical equipment, appliances and components. These increases were partly offset by a 3.0% decline in motor vehicles and parts. Nondurable manufacturing output rose 0.4%, led by growth in printing and support activities and chemicals. On a yearly basis, manufacturing production rose by 1.1%, after a 0.9% increase in August. In the third quarter, manufacturing output grew by 0.7%, supported by a 3.8% increase in durable goods production, which was boosted in part by a 28.4% surge in semiconductors and related electronic components. In contrast, nondurable goods production declined by 1.6% over the same period.
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US Manufacturing Output Unexpectedly Falls
Manufacturing output in the US declined 0.3% in August, ending a seven-month period of consecutive increases and falling short of market expectations for a 0.3% rise. The decline was driven primarily by weaker durable-goods production, which fell 0.5% amid broad-based decreases across categories. In contrast, output of nondurable goods was unchanged during the month, providing some stability to overall manufacturing activity. Production in other manufacturing industries, including publishing and logging, increased 1%. Meanwhile, manufacturing capacity utilisation fell by 0.3 percentage point to 75.7% in August. The rate remained 2.5 percentage points below its long-run average for the 1972–2025 period, highlighting continued spare capacity across the sector.
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Manufacturing output in the US increased 0.2% in July 2026, in line with market expectations. Production of durable goods rose 0.7%, with most categories expanding more than 1%. Among the industry groups within durables, only the indexes for nonmetallic mineral products and for motor vehicles and parts decreased in July, moving down 0.2% and 2.1%, respectively. Production of nondurable goods fell 0.4%, with gains in the output of textile and product mills and of petroleum and coal products more than offset by declines in all other categories. Capacity utilization for manufacturing edged up to 76% in July, a rate that is 2.2 percentage points below its long-run (1972–2025) average.
2026-08-18