December Industrial Production Rises as Utilities Rebound

01:23 PM EST, 01/16/2026 (MT Newswires) -- US industrial production increased more than expected in December, led by a rebound in utilities, data from the Federal Reserve showed Friday.

Industrial output rose 0.4% last month following a similar, upwardly revised pace of growth in November. The consensus was for an increase of 0.1% in a survey compiled by Bloomberg. Full-year industrial output grew 2%, the Fed data showed.

Utilities output expanded 2.6% in December following a 0.3% contraction the month before, underpinned by gains in natural gas, the Fed said. Mining output fell 0.7% after a 1.7% rise in November.

"The industrial side of the economy continues to expand, with signs that manufacturing is picking up," BMO Senior Economist Erik Johnson said in a report. "The annual increase in industrial output likely reflects the recent strong productivity gains when compared to a 0.4% (year-over-year) decline in goods-sector employment in 2025."

Manufacturing output in December rose 0.2% following a 0.3% rise in November and a 0.6% decline in October, the Fed data showed.

"Though the headline figure was flattered by volatile utilities, manufacturing has risen in back-to-back months, hinting at a potential turnaround," Johnson said.

Durables output ticked up 0.1% in December after declining by the same percentage the month prior, while the nondurable manufacturing index rose 0.3% following a 0.8% rise, the Fed data showed.

Earlier this month, data provider S&P Global (SPGI) said US manufacturing output growth decelerated in December as new orders fell for the first time in a year, while firms' outlook waned. A separate survey by the Institute for Supply Management showed activity in the manufacturing sector contracted for a 10th straight month in December and reached its lowest reading of 2025.

On Thursday, two separate regional Fed surveys showed manufacturing activity in New York state and the US Mid-Atlantic region rebounded in January amid strength in demand and shipments.

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