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U.S. Industrial Output Rises in December as Factories Log Modest Gain

The latest Fed data point to a narrow rebound driven by select sectors rather than a broad manufacturing recovery.

Overview

  • Industrial production increased 0.4% in December, with manufacturing up 0.2% after upward revisions to November.
  • Primary metals jumped 2.4% and utilities rose 2.6% on cold-weather demand, while mining fell 0.7%.
  • Motor vehicle output declined 1.1% for a fourth straight month and was 2.8% lower than a year earlier.
  • Factory activity fell at a 0.7% annualized rate in the fourth quarter even as production was 2.0% higher year over year.
  • Capacity utilization ticked up to 76.3% but remained 3.2 points below its long-run average, as tariffs reshaped winners and losers and manufacturers shed 68,000 jobs in 2025.