US industrial production was unchanged in August after rising 0.2% in July, as a 0.3% fall in manufacturing offset stronger utility output, the Federal Reserve said on Friday.
The flat reading leaves total industrial output 1.4% above its level a year earlier. It also shows that the factory recovery remains uneven: manufacturing had risen for seven straight months before August, but durable-goods industries saw broad declines during the month.
The Federal Reserve’s August report covers manufacturing, mining and utilities. Together, those industries form industrial production, which is narrower than the whole economy but closely watched for evidence about business demand, inventories and factory activity.
Utilities lifted the headline result
Utility output rose 1.8% in August, while mining edged up 0.1%. Manufacturing, by contrast, fell 0.3% after a 0.2% gain in July.
Utility production often moves with weather-driven demand for electricity and gas, so it can make the monthly headline more volatile. The manufacturing decline provides a clearer view of factory momentum, particularly because durable manufacturing fell 0.5% across a wide range of categories.
Business equipment gave back part of July’s gain
Output of business equipment fell 0.5% in August after increasing 1.0% in July. Consumer goods edged up 0.1%, while construction supplies declined 0.7% and defense and space equipment fell 1.2%.
The monthly figures are preliminary and may be revised. The Fed plans its annual revision of industrial production and capacity data on 24 November, incorporating new benchmark data and updated seasonal factors.
Factories are still operating below their long-run rate
Capacity utilization, which measures the share of available industrial capacity in use, held at 76.3%. That was 3.1 percentage points below its 1972 to 2025 average. Manufacturing utilization fell 0.3 percentage point to 75.7%.
Low utilization does not by itself predict weaker growth, but it suggests that much of industry can meet extra demand without immediately adding new plants or equipment. The August data leave a mixed picture: utilities and mining improved, while factory production paused after a sustained run of gains.
