U.S. factory production posts largest gain in 11 months in January

U.S. factory production rose 0.6 percent last month, the biggest gain in nearly a year. The growth offers hope for a sector hit by tariffs and interest rates.

Insights:
Factory production in the US USUS rose by 0.6 percent in January, marking the largest monthly gain in 11 months and the most significant increase since February 2025. This growth, reported by the Federal Reserve on February 18, 2026, contributed to a 0.7 percent rise in overall industrial production and higher capacity utilization across the sector. The January data highlights a shift in industrial activity as the nation’s manufacturing facilities increased their operating rates.
A worker welds a steel tube at HCC, a company that uses parts to make combines, at the factory in Mendota, Illinois, U.S., February 21, 2025. REUTERS/Vincent Alban
A worker welds a steel tube at HCC, a company that uses parts to make combines, at the factory in Mendota, Illinois, U.S., February 21, 2025. REUTERS/Vincent Alban
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