US Factory Output Jumps, Core Capital Goods Orders Signal Solid Business Investment

Stronger manufacturing production and rising equipment orders point to a tentative rebound in U.S. industrial activity.

An employee of Independent Can Company works on the manufacturing line in Belcamp, Md., on June 25, 2025. Ryan Collerd/AFP via Getty Images

U.S. industrial production rose in January by the most in nearly a year, while orders for key business equipment increased more than expected in December, pointing to firm capital spending and signs of a pickup in domestic manufacturing.

Industrial production increased 0.7 percent in January after rising 0.2 percent in December, according to the Federal Reserve’s G.17 report released on Feb. 18. This marks a significant improvement compared to the lackluster performance over the past six months, which saw numbers as low as a minus 0.4 percent contraction in industrial production in October.