US Manufacturing Output Surges in January

Factory production sees biggest gain in 11 months amid optimism for sector

Published on Feb. 21, 2026

Got story updates? Submit your updates here. ›

U.S. factory production increased by 0.6% in January, the largest gain since February 2025, offering hope for a manufacturing sector that has been squeezed by import tariffs and high interest rates. Economists are optimistic the boost from AI and tax cuts will broaden to the rest of manufacturing.

Why it matters

The manufacturing sector has faced challenges in recent years due to trade policies and economic conditions, so this uptick in production signals potential improvement and growth for a key part of the U.S. economy.

The details

Manufacturing output rose 0.6% last month, the largest gain since February 2025, after being unchanged in December. The increase in factory output last month occurred across the board, with durable goods manufacturing up 0.8% and nondurable goods manufacturing up 0.4%. Mining output fell 0.2% while utilities production increased 2.1%.

  • Manufacturing output rose 0.6% in January 2026.
  • This was the largest gain since February 2025.
  • Output was unchanged in December 2025.

The players

Federal Reserve

The central banking system of the United States that released the data on manufacturing output.

President Donald Trump

The former U.S. president whose trade policies, including import tariffs, have impacted the manufacturing sector.

Got photos? Submit your photos here. ›

The takeaway

This surge in manufacturing output provides a hopeful sign for the sector, which has faced headwinds in recent years, and suggests that policy changes and technological advancements may help drive further growth and recovery.