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, and orders for key business equipment increased more than expected in December 2025, pointing to firm capital spending and signs of a pickup in domestic manufacturing.

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