In President Donald Trump’s first full month back in office, the nation’s industrial production jumped, rising by more than twice January’s growth rate, Federal Reserve data for February released Tuesday show.
At 104.2, February’s seasonally-adjusted Industrial Production Index (IP) exceeded analysts’ predictions by increasing 0.7% from the previous month, after rising just 0.3% in January. Compared to February of 2024, the index was up 1.4%.
An 8.5% spike in the production of motor vehicles and their parts helped fuel a 0.9% increase in total manufacturing output. Without that, manufacturing increased 0.4%. Compared to year-ago, manufacturing production was up 0.7% in February. In all, manufacturing accounts for roughly ten percent of the U.S. economy.
Notably, the index for mining increased 2.8% in February. On the downside, the utilities index fell 2.7% from January, as warmer weather decreased the demand for heat in homes and businesses.
U.S. industrial production utilized a greater share of its capacity in February, as production capacity increased to 78.2%, up from 77.7% in January. Compared to year-ago, capacity growth was 1.3%.
Most market groups enjoyed output growth in February:
- Consumer goods gained 0.2%.
- Durable consumer goods increased 4.3%.
- Nondurable consumer goods declined 0.8%.
- Business equipment grew 1.6%
- Transit equipment jumped 7.9%.
- Construction supplies rose 1.0%.
- Business supplies declined 0.1%.
- Output of materials rose 1.0%, with gains in all categories.
🚨WHOA🚨 @PressSec: "The manufacturing sector came ROARING BACK in February!"
— Townhall.com (@townhallcom) March 19, 2025
That's TRIPLE THE RATE "than the expectations of its highest EVER reported level." pic.twitter.com/DydazA7Irs