United States Factory Production Rose 0.2 Percent in December to Exceed Economist Forecasts

US manufacturing output grew 0.2 percent in December although the sector faced a quarterly contraction. The data reveals uneven impacts from trade policy.

Insights:
The Federal Reserve reported on Friday that factory production in the US USUSrose by 0.2 percent in December 2025. This performance exceeded the expectations of economists who had forecast a 0.2 percent decline for the month. The December gain followed a revised 0.3 percent increase in November 2025, bringing the year-over-year increase in manufacturing output to 2.0 percent. However, the modest monthly uptick masks broader challenges for the sector, which accounts for 10.1 percent of the national economy.
An employee works inside a Nucor steel factory in Blytheville, Arkansas, U.S., March 28, 2025. REUTERS/Karen Pulfer Focht
An employee works inside a Nucor steel factory in Blytheville, Arkansas, U.S., March 28, 2025. REUTERS/Karen Pulfer Focht
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