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Industrial production increased 0.5% in January after rising 1.0% in December. Meanwhile, manufacturing output slipped 0.1%, held down by a 5.2% drop in the motor vehicles and parts index. With the dramatic decrease in January, motor vehicles and parts output was down 5.9% over the year. At 103.5% of its 2017 average, total industrial production in January rose 2.0% from the same month last year. Capacity utilization stepped up to 77.8% and increased 1.2% over the past year, but remains 2.4 percentage points below its long-term average from 1972 to 2023.

In January, a majority of major market groups posted gains. Among consumer goods, the production of durables decreased 3.0%, led by automotive products (-4.9%) and appliances, furniture and carpeting (-3.2%), while the index for nondurables rose 1.8%, with the greatest increases in energy (6.1%) and clothing (2.7%). The business equipment index improved 2.1% in January, with transit equipment up 8.6% after rising 10.5% in December.

Durable goods manufacturing stayed the same in January, and most durable manufacturing industry groups exhibited mixed results. Nondurable goods manufacturing slipped 0.3% in January, with the 2.6% growth in apparel and leather partially offsetting declines in printing and support (-1.8%) and plastics and rubber products (-1.6%). Manufacturing capacity utilization slipped slightly to 76.3%, which is 1.9 percentage points below the long-term average.