U.S. Industrial Production Beats Forecasts in February

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U.S. industrial production expanded in February, marking the fourth consecutive month of increases and beating economist forecasts. Manufacturing and mining output both grew for the second month in a row, driven by a surge in business equipment production and capital spending. Productivity in the manufacturing sector also saw strong back-to-back gains, as factories have become leaner but more efficient.

Why it matters

The robust industrial production and capital investment data suggest the U.S. economy is maintaining solid momentum, despite some mixed signals from the retail sector. The productivity improvements also indicate manufacturers are finding ways to do more with fewer workers, which could have broader implications for the labor market.

The details

Manufacturing output rose 0.2% in February, with motor vehicles and chemicals, plastics, rubber, and paper products leading the gains. Mining output increased 0.8%, following a 0.9% rise in January. The only drag came from utilities, which fell 0.6% due to a drop in natural gas output. Business equipment output has now risen for four straight months, lifting the index 6.4% above its year-earlier level. Separate data showed capital spending expectations among New York manufacturers are at their highest level in more than three years.

• Industrial production expanded for the fourth consecutive month in February 2026.
• Manufacturing productivity rose 2.8% in Q3 2025 and 2.3% in Q4 2025 compared to a year earlier.
• Net unauthorized immigration turned negative in early 2025, shrinking the overall labor pool.