The U.S. factory output posted its strongest monthly gain in nearly a year in January, signaling early signs of recovery in the manufacturing sector, according to data from the Federal Reserve.
Manufacturing production rose 0.6 percent, beating expectations and marking the largest increase since February 2025. Output was flat in December and is now up 2.4 percent from a year earlier.
The rebound comes as manufacturers continue to navigate higher borrowing costs and trade pressures under President Donald Trump’s tariff policies.
"Industrial production in the United States has exceeded expectations, registering a significant uptick...a notable increase that signals a robust expansion in the country’s manufacturing, mining, and utilities sectors." https://t.co/b1RnogpQ6Y
— Rapid Response 47 (@RapidResponse47) February 18, 2026
Trump has argued the tariffs are necessary to rebuild domestic industry, even as the sector lost more than 80,000 jobs last year.
Growth was broad-based. Durable goods output climbed 0.8 percent, led by gains in vehicles, machinery, and electronics.
Nondurable goods rose 0.4 percent. Overall industrial production increased 0.7 percent, while capacity utilization edged higher but remained below historical averages.
The data adds to evidence that U.S. manufacturing may be stabilizing as policy uncertainty eases.
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TIPP Staff
