News & Insights

Industrial production increased 0.9% in December after rising 0.2% in November. Meanwhile, manufacturing output moved up 0.6%, with a 6.3% gain in the aerospace and miscellaneous transportation equipment index leading the increase. Despite the over-the-month gain, aerospace and miscellaneous transportation equipment output declined 5.6% over the year. At 103.2% of its 2017 average, total industrial production in December rose 0.5% from the same month last year. Capacity utilization stepped up to 77.6%, but remains 2.1 percentage points below its long-term average from 1972 to 2023.

In December, major market groups saw mixed results, but a majority posted gains. Among consumer goods, the production of durables decreased 0.4%, led by home electronics (-0.9) and automotive products (-0.4%), while the index for nondurables rose 0.7%, with the greatest increases in energy (1.9%) and clothing (0.9%). The business equipment index improved 1.4% in December, with transit equipment up 10.3% after rising 6.1% in November.

Durable goods manufacturing increased 0.4% in December, and most durable manufacturing industry groups posted gains. Meanwhile, nondurable goods manufacturing rose 0.7% in December, with the largest gain in petroleum and coal products (1.6%). Manufacturing capacity utilization increased 0.4% to 76.6%, which is 1.7 percentage points below the long-term average.