U.S. industrial production increased 0.7% in September after rising a revised 0.1% in August, the Federal Reserve reported on October 16. The total production index reached 104.0, or 2.2% above its September 2025 level.
The release showed broad output gains but continued spare capacity. Investors are weighing the production data alongside September consumer inflation, which showed a sharp gasoline increase.
U.S. industrial production gets a utilities lift
Utilities delivered the largest monthly increase as electric and natural-gas output rose. Consumer-goods production increased 0.7%, construction supplies gained 1.0%, and business supplies advanced 0.9%.
Manufacturing output rose 0.3% during September. Primary metals, machinery, and electrical equipment recorded gains of at least 1%, while motor vehicles and parts fell 3.0%. Company-level production trends have also shaped recent results, including Alcoa’s third-quarter output increase.
Semiconductor output strengthens the third quarter
Total U.S. industrial production increased at a 2.8% annualized rate during the third quarter. Durable manufacturing rose at a 3.8% rate, helped by a 28.4% increase in semiconductor and related electronic-component output.
Nondurable manufacturing fell at a 1.6% annualized rate. Mining expanded 5.0%, while utilities output increased at a 14.8% rate. The mix suggests that energy demand and technology production carried more of the quarterly improvement than consumer durables.
Capacity utilization remains below average
Capacity utilization increased to 76.9% in September but remained below its long-run average. Manufacturing utilization reached 75.9%, mining stood at 87.5%, and utilities rose to 73.8%.
The Federal Reserve plans an annual revision on November 24, when it will incorporate new benchmarks and move the production indexes to a 2022 base year. The current preliminary readings therefore may change. Property and warehouse demand provides a related industrial signal, as shown in Prologis’ latest earnings.
Primary source: Federal Reserve G.17 release, October 16, 2026.
Elsy kanana
Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.
