US manufacturing production jumped in January alongside employment numbers

Industrial production increased by 0.7% in January after increasing 0.2% in December, according to the latest numbers from the Federal Reserve. Of the three metrics that make up industrial production, manufacturing outputs rose 0.6%, the largest such increase since February 2025, while utilities output rose 2.1% and mining output fell 0.2%.

Market group and industry breakdowns showed productivity increases across the board in January, including a 0.9% increase in business equipment, a 0.7% increase in durable and nondurable consumer goods, and 0.6% increase in materials production.

Broken down by industry groups, durable manufacturing output rose by 1% or more in nonmetallic mineral products, machinery, computers and electronics, miscellaneous durable goods, and motor vehicle parts, and by 0.8% overall. Nondurable goods output increased 0.4%, mostly driven by increases in paper and printing, chemicals, plastics and rubber products.

Total capacity utilization, meanwhile, posted an increase from December of 0.5 points to 76.2%, 3.2 points shy of its long-run average since 1972. The manufacturing capacity utilization rate rose by 0.4 points to 75.6%, 2.6 points beneath its own average.

Investing in American manufacturing in 2025 

This map shows where manufacturers are choosing to invest their resources, whether they are building new production facilities or expanding existing plants.