Why it matters
- U.S. industrial production rose 0.7% in September after a 0.1% gain in August and was 2.2% above its year-earlier level, the Federal Reserve said Friday, Oct. 16.
- Utilities output jumped 3.5%, while manufacturing rose 0.3% and mining rose 0.2%. Motor vehicle and parts output fell 3.0%.
- Capacity utilization rose to 76.9%, 2.5 percentage points below its 1972-2025 average of 79.4%. August's production gain was revised up from zero.
U.S. industrial production rose 0.7% in September, the Federal Reserve said Friday, Oct. 16, as utility output jumped 3.5% and factory output rose 0.3%. Total output was 2.2% higher than a year earlier.
Capacity utilization, the share of the industrial sector's capacity in use, rose to 76.9% from 76.4% in August, according to the Fed's G.17 report. That is 2.5 percentage points below the long-run (1972-2025) average of 79.4%.
How much did manufacturing output rise in September?
Manufacturing output rose 0.3% in September, after a 0.2% decline in August, the Fed said. Durable goods manufacturing edged up 0.1%, with gains of 1% or more in primary metals, machinery and electrical equipment. Output of motor vehicles and parts fell 3.0%. Nondurable manufacturing rose 0.4%, led by printing and chemicals.
Factory output is 1.1% above its level of a year earlier. Manufacturing capacity utilization rose 0.1 percentage point to 75.9%, which is 2.3 points below its long-run average, the Fed said.
September industrial production by sector
| Measure | September change | Change from Sept. 2025 | Capacity utilization |
|---|---|---|---|
| Total industrial production | +0.7% | +2.2% | 76.9% |
| Manufacturing | +0.3% | +1.1% | 75.9% |
| Mining | +0.2% | +2.8% | 87.5% |
| Utilities | +3.5% | +8.7% | 73.8% |
Source: Federal Reserve Board, G.17 Industrial Production and Capacity Utilization, Oct. 16, 2026. September figures are preliminary.
Why did utility output jump?
The Fed said the 3.5% gain in utilities came from higher output at both electric utilities and natural gas utilities. The operating rate for utilities rose 2.3 percentage points to 73.8%, which the Fed said remains well below its long-run average. Mining capacity utilization ticked up to 87.5%, 2.3 points above its long-run average.
Were earlier months revised?
Yes, slightly. The Fed revised August's industrial production change up to a 0.1% gain from no change, and August capacity utilization to 76.4% from 76.3%. August manufacturing was revised to a 0.2% decline from 0.3%.
For the third quarter, industrial production rose at a 2.8% annual rate. Durable manufacturing grew at a 3.8% rate, helped by a 28.4% jump in semiconductor and related components output, while nondurable manufacturing fell at a 1.6% rate, the Fed said.
The Fed plans to publish its annual revision of the industrial production and capacity data on Nov. 24, 2026, moving the index base year to 2022.
The report follows Thursday's data showing U.S. retail sales rose 0.8% in September. For how businesses describe costs and demand, see our Fed Beige Book coverage, and find more in the economy section.
Sources
- Federal Reserve Board, G.17 Industrial Production and Capacity Utilization, release date Oct. 16, 2026
