US manufacturing output posts biggest gain in 11 months in January

WASHINGTON, Feb 18 (Reuters) - U.S. mill accumulation accrued by the astir successful 11 months successful January, offering anticipation for a manufacturing assemblage that has been squeezed ‌by import tariffs and precocious involvement rates.

Manufacturing output roseate 0.6% past month, the ‌largest summation since February 2025, aft being unchanged successful December, the Federal Reserve said connected Wednesday.

Economists polled by Reuters ​had forecast accumulation for the sector, which accounts for 10.1% of the economy, would emergence 0.4%. Output successful December was antecedently reported to person risen 0.2%.

Production astatine factories precocious 2.4% connected a year-over-year ground successful January. Manufacturing has been hobbled by President Donald Trump's sweeping tariffs, which ‌business leaders accidental person raised ⁠costs for factories and consumers.

Trump has defended his punitive import duties arsenic indispensable to reconstruct a long-declining home concern base. The manufacturing assemblage mislaid ⁠more than 80,000 jobs successful 2025. Some segments similar exertion person thrived amid an artificial spending boom.

Economists are optimistic the boost from AI volition broaden to the remainder of manufacturing, which they besides ​expect ​to get a assistance from taxation cuts.

The summation ​in mill output past period occurred ‌across the board. Durable goods manufacturing output roseate 0.8%, with beardown gains successful nonmetallic mineral products, machinery, machine and physics products, miscellaneous durable goods, arsenic good arsenic centrifugal vehicles and parts, which roseate for the archetypal clip since past August.

Nondurable goods manufacturing output roseate 0.4%, lifted by gains successful the accumulation of paper, printing and enactment arsenic good arsenic chemicals, plastics ‌and rubber products.

Mining output fell 0.2% aft decreasing 0.9% ​in the anterior month. Utilities accumulation accrued 2.1% arsenic ​the tailwind from freezing upwind persisted. ​That speechmaking followed a 3.0% leap successful December. Overall concern accumulation precocious ‌0.7% aft gaining 0.2% successful December. Industrial ​increased 2.3% connected a ​year-over-year ground successful January.

Capacity utilization for the concern sector, a measurement of however afloat firms are utilizing their resources, accrued to 76.2% from 75.7% successful December. It is ​3.2 percent points beneath ‌its 1972–2025 average. The operating complaint for the manufacturing assemblage roseate four-tenths of a ​percentage constituent to 75.6%. It is 2.6 percent points beneath its long-run ​average.

(Reporting by Lucia Mutikani; Editing by Paul Simao)