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Manufacturing · October 16, 2026 · 2 min read

U.S. industrial production rises 0.7% in September; manufacturing gains 0.3%

By Econ Data Tools Editorial Team

Published October 16, 2026 • Updated October 16, 2026

Reviewed by Editorial QC

The Fed reports a stronger total industrial reading, with utilities up 3.5% and capacity utilization at 76.9%. September figures are preliminary.

U.S. industrial production increased 0.7% in September after a revised 0.1% rise in August, the Federal Reserve reported on October 16. Total industrial output was 2.2% above its year-earlier level. September figures are preliminary and the monthly changes are seasonally adjusted. Manufacturing output rose 0.3%, mining increased 0.2% and utilities output rose 3.5%. The larger total industrial gain should not be described as a 0.7% increase in manufacturing: the measures cover different industry groups. Capacity utilization for total industry increased to 76.9%, 2.5 percentage points below its 1972-2025 average. Manufacturing utilization was 75.9%. Utilization measures output relative to estimated capacity; it is not the share of workers employed. Within manufacturing, durable-goods production edged up 0.1% and nondurable output rose 0.4%. Motor vehicles and parts fell 3.0%, showing that the positive manufacturing total did not reflect gains in every industry. Total industrial output increased at a 2.8% annual rate in the third quarter, while manufacturing increased at a 0.7% annual rate. Those annualized quarterly changes are different from the month-to-month September figures and should not be substituted for them. The Fed plans an annual revision on November 24, including a change of the index base year to 2022 and updated benchmark information. For business planning, the release provides an industrial-sector activity measure, not a complete GDP reading or a prediction of the next interest-rate decision.

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