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Industrial production increased 0.7% in February after rising 0.3% in January. Meanwhile, manufacturing output jumped 0.9%, boosted by an 8.5% upsurge in the motor vehicles and parts index. Despite the dramatic increase in February, motor vehicles and parts output was still down 4.8% over the year and hasn’t recovered fully from the drops in output in Q3 and Q4. At 104.2% of its 2017 average, total industrial production in February rose 1.4% from the same month last year. Capacity utilization stepped up to 78.2% and increased 1.3% over the past year, but remains 1.4 percentage points below its long-term average from 1972 to 2024.

In February, a majority of major market groups posted gains. Among consumer goods, the production of durables increased 4.3%, led by automotive products (7.8%) and appliances, furniture and carpeting (1.7%), while the index for nondurables declined 0.8%, with the greatest decreases in energy (-3.2%) and foods and tobacco (-0.7%). The business equipment index improved 1.6% in February, with transit equipment up 7.9% after rising 7.7% in January and 12.7% in December.

Durable goods manufacturing increased 1.6% in February, with most durable manufacturing industry groups exhibiting gains. Nondurable goods manufacturing inched up 0.2% in February, led by apparel and leather (1.3%) and chemicals (1.0%). Manufacturing capacity utilization rose 0.6 percentage points to 77.0%, but remains 1.2 percentage points below the long-term average.