US Factory Output Rises to Near 4-Year High as Manufacturing Rebounds

Two manufacturing surveys point to improving business conditions and stronger factory activity at the start of 2026.

Steel components lie at HCC, a company that uses parts to make combines, at the factory in Mendota, Ill., on Feb. 21, 2025. REUTERS/Vincent Alban

U.S. manufacturing gained fresh momentum in January as factory output increased and business conditions improved, according to survey data released on Feb. 2, offering the clearest signs yet of a turnaround after months of weakness.

The Institute for Supply Management’s (ISM’s) headline measure of U.S. manufacturing activity hit its highest level since August 2022, while S&P Global data showed output at American factories growing at its fastest pace since May 2022.