Fed report: Factory output increased slightly in December

The manufacturing sector saw an overall decline in productivity in 2025 despite a small increase in the last month. That’s according to the latest information available on industrial productivity from the Federal Reserve, which released its latest Industrial Production and Capacity Utilization report January 16.

Manufacturing production, a subset of industrial production, rose by 0.2% in December thanks to 2.4% growth in primary metals output, 1.7% growth in electrical equipment output and 1.5% in aerospace and miscellaneous transportation equipment. Those gains were offset by 1% or higher declines in wood products, mineral products, and motor vehicles.

Industrial production, however, which includes manufacturing, mining and utilities output, rose by 0.4% in December and 0.7% from last year.

The amount of production capacity was largely unchanged in December: the Federal Reserve reported the capacity utilization rate in manufacturing was steady at 75.6% in December.