U.S. Industrial Production Shows Little Change in August; Manufacturing Declines

In terms of the index, August's reading was set at 103.1, which is 3.8% higher than a low reached in November 2024 and 3.9% above a low recorded in January 2024. Manufacturing production saw its first monthly decline since December, decreasing by 0.3%, although it remained up 0.9% year-on-year. Durable goods production fell by 0.5%, ending a streak of increases since November 2025, following a 0.6% gain in July.

The decline in durable goods was broad-based, with significant drops in furniture and related products as well as miscellaneous durable goods, both down by 1.4% month-over-month. Other notable declines included aerospace and transportation equipment, motor vehicles and parts, and nonmetallic mineral products. Conversely, machinery and wood products recorded slight increases in production.

Nondurable goods production was nearly steady, with a minor decline of 1.5% year-on-year in August. Specific areas of decline were noted in printing support activities, plastics, and petroleum products, while categories such as apparel and food registered small output gains.

Utilities output increased by 1.8% month-over-month, accompanied by a rise in electric utilities output, while mining activity saw a marginal increase of 0.1%. Collectively, utility and mining sectors have recorded gains in three of the last five months.

In terms of market segments, materials production growth of 0.2% was recorded, while consumer goods output displayed a slight increase despite a drop in durable consumer goods. Business equipment output also saw a decline of 0.5%. Manufacturing capacity utilization held steady at 76.3%, remaining below its long-term average of 79.4% from 1972 to 2025, while manufacturing capacity utilization itself fell to 75.7%, marking the lowest level since March.