Factory Output Stalls, with Mixed Results Across Market Groups

Industrial production edged up 0.1% in June, while manufacturing output stayed the same after ticking up 0.1% in May. At 97.9% of its 2017 average, manufacturing production moved up 1.1% from June 2025. Capacity utilization for manufacturing was 75.7%, down slightly from 75.8% in May but up 1.1% over the past year. Capacity utilization remained 2.5 percentage points below its long-term average from 1972 to 2025.

In June, production for market groups posted mixed results. Consumer goods production edged up 0.3%, while business equipment output declined 0.4%. The growth in consumer durables (up 0.4%) was led by the output of appliances, furniture and carpeting rising 2.0%. Meanwhile, led by an increase in the index for clothing (up 1.9%), the index for consumer nondurables moved up 0.3%. Among business equipment, a 1.0% decrease in the output of industrial and other equipment led the loss. At the same time, the index for materials stepped up 0.1%, while the index for construction supplies declined 0.4% and the index for business supplies stayed the same.

Durable goods manufacturing inched down 0.1% in June but was up 3.2% from the year prior. The largest monthly loss occurred in wood products (down 0.8%), while motor vehicles and parts manufacturing posted the largest gain (up 0.7%) in June. Meanwhile, led by a 2.1% gain in petroleum and coal products, nondurable goods manufacturing moved up 2.0% in June but was down 1.1% from June 2025.