US factory output hits one-year high as manufacturing sector recovers

US factory production increased by the most in nearly a year in January, offering hope for a manufacturing sector that has been squeezed by import tariffs and high interest rates. Manufacturing output rose 0.6 per cent last month, the largest gain since February 2025, after being unchanged in December, the Federal Reserve said on Wednesday. Economists had earlier forecast production for the sector, which accounts for 10.1 per cent of the economy, would rise 0.4 per cent. Output in December was...

By Reuters

US manufacturing output posts biggest gain in 11 months in January

US Industrial Production Surged In January

US Industrial Production Surged In January Despite slumping sentiment surveys, 'hard' data continues to suggest the US economy is ticking along nicely with Industrial Production surging 0.7% MoM in January (better than the +0.4% MoM expected and well up from the downward revised +0.2% MoM in December). This is the 3rd straight monthly increase in Industrial Production, lifting growth to 2.3% YoY - the best annual growth since Sept 2022... Source: Bloomberg Under the hood, US Manufacturing output rose 0.6% MoM (better than the +0.4% MoM expected and best monthly gain since Feb 2025)... Source: Bloomberg That is the fast annual growth in manufacturing since Feb 2022. Capacity Utilization rose to 76.2% (below expectations),m extending the positive trend since the start of Trump's term... Source: Bloomberg Finally, circling back to the 'soft' survey data we noted at the beginning, we note that ISM Manufacturing exploded higher in January (after decoupling from hard data all year)... Does make you wonder whether any of these surveys are real? Or did the Democrats being interviewed finally throw in the towel on the doomsaying? Tyler Durden Wed, 02/18/2026 - 09:35

By Tyler Durden