The Federal Reserve's G.17 report indicates that US industrial production remained flat in August, while manufacturing output fell by 0.3 percent. Capacity utilization stayed at 76.3 percent, which is 3.1 percentage points lower than the long-term average calculated from 1972 to 2025.
Data from July showed a 0.2 percent increase in industrial production. Current capacity utilization of 76.3 percent means approximately one-quarter of industrial capacity is currently idle, remaining below the long-term average of 79.4 percent.
The ISM Manufacturing PMI reached 54.6 in August, marking eight months of expansion. However, the survey noted a cooling in new orders, suggesting potential future deceleration in production activity.
On September 16, the Federal Reserve increased the federal funds rate by 25 basis points to a range of 3.75 percent to 4.00 percent, marking the first hike in three years. Additionally, 10-year Treasury yields have approached 5 percent, increasing debt financing costs.
Future G.17 reports are scheduled for release on January 15 and February 17, 2027. These reports will reflect economic activity during the autumn months following the September rate hike.
