US industrial production is unchanged in August as factory output falls 0.3% after seven straight gains
The Federal Reserve said total output was flat after rising 0.2% in July. A 0.3% fall in manufacturing was offset by a 1.8% jump in utilities, and capacity utilization stayed at 76.3%.
US industrial production was unchanged in August, the Federal Reserve said on 18 September, after rising 0.2% in July. A 0.3% drop in manufacturing output, the first decline after seven consecutive monthly increases, was offset by a 1.8% jump in utilities, while mining ticked up 0.1%. Total output was 1.4% above its level a year earlier.
The headline numbers
- Total industrial production: unchanged in August (July: +0.2%). The index stood at 103.1, with 2017 as 100
- Manufacturing: down 0.3% (July: +0.2%), and 0.9% above a year earlier
- Mining: up 0.1%, and 0.3% above a year earlier
- Utilities: up 1.8%, and 6.2% above a year earlier. Electric utilities rose by more than natural gas utilities fell
- Capacity utilization: unchanged at 76.3%, which is 3.1 percentage points below its 1972–2025 average of 79.4%
Inside manufacturing
Durable manufacturing fell 0.5% in August, with declines across categories, while nondurable manufacturing was unchanged. The small group covering publishing and logging rose 1.0%. Capacity utilization in manufacturing fell 0.3 percentage point to 75.7%, which is 2.5 points below its long-run average.
By type of product, the Fed reports that output of business equipment fell 0.5% and defense and space equipment 1.2%, construction supplies fell 0.7%, and consumer goods edged up 0.1%. Materials output rose 0.2%, helped by a 0.7% increase in energy materials. Mining's operating rate rose to 86.3%, and the utilities rate rose 1.1 points to 71.3%, still far below its long-run average of 84.0%.
How it compares with other August factory data
The picture from surveys was of a factory sector that has been losing momentum. S&P Global's flash US PMI, published on 21 August, showed manufacturing output at a 13-month low of 51.9 as supply delays and less precautionary stockbuilding slowed production, while services activity accelerated. The Institute for Supply Management's manufacturing index fell to 54.6 from 55.6 but still signalled expansion (report). Industrial production measures actual output rather than opinions, which is why it is often read as a check on the surveys.
Why forex traders look at it
Industrial production is a coincident indicator: it describes what factories, mines and utilities produced, so it rarely moves the dollar the way payrolls or inflation do. Its value is as a test of the growth story that central banks lean on. The Federal Reserve raised its target range to 3.75%–4.00% on 16 September (report), and a flat month for output doesn't change that by itself, but a run of weak readings would add to the case for a slower pace. Traders usually read it alongside the jobs report (non-farm payrolls explained) and retail sales (report). Live prices: EUR/USD.
What comes next
The Federal Reserve plans an annual revision to the indexes on 24 November 2026. The base year will move to 2022 and new Census Bureau benchmark data for 2023 and 2024 will be included, so the history of these figures can change.
Sources
Common questions
What is industrial production?
It is a monthly index of the output of the US industrial sector, which the Federal Reserve defines as manufacturing, mining, and electric and gas utilities. The Fed publishes it in its G.17 release together with capacity utilization.
What was US industrial production in August 2026?
It was unchanged in August after rising 0.2% in July, and 1.4% above its year-earlier level. Manufacturing fell 0.3%, mining rose 0.1% and utilities rose 1.8%, the Federal Reserve said on 18 September 2026.
What is capacity utilization?
It compares actual output with the output the industrial sector could sustain. It was 76.3% in August 2026, unchanged from July and 3.1 percentage points below its 1972–2025 average of 79.4%. For manufacturing alone it was 75.7%.
Why did manufacturing output fall in August?
The Fed reports a 0.5% drop in durable manufacturing, with broad-based declines across categories, while nondurable manufacturing was unchanged. It does not give a single cause. S&P Global's survey pointed to supply delays and less precautionary stockbuilding.
Does industrial production move the US dollar?
Rarely on its own. It describes output that has already happened, so traders use it mainly to check the growth outlook that interest-rate expectations rely on, alongside payrolls, inflation and retail sales.
When is the next industrial production report?
The Federal Reserve publishes the G.17 monthly, and the next one covers September. The Fed also plans an annual revision of the indexes on 24 November 2026, moving the base year to 2022.
This article is for information only and is not financial advice. Trading forex and CFDs carries a high risk of losing money. Read the risk warning. Spotted an error? Tell the editors.
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