US industrial production rises 0.7% in September as utilities surge 3.5%
US industrial output increased 0.7% in September and 2.2% over the past year, led by a 3.5% jump in utilities and a 0.3% gain in manufacturing.
The Federal Reserve’s October 16 G.17 release shows preliminary US industrial production rose 0.7% in September after a revised 0.1% gain in August.
Output grew at a 2.8% annualized rate in the third quarter and stood at 104.0% of its 2017 baseline, up 2.2% from September 2025. [1][2]
Nearly half of September’s headline acceleration came from utilities, which rose 3.5% on warm late-summer electricity demand (+3.7% in electric utilities and +2.1% in natural gas). Factory output was more modest: manufacturing rose 0.3% after a revised 0.2% dip in August, while mining gained 0.2%. Business equipment output was flat in the month but remained 6.7% higher than a year earlier. [1][3]
Total industrial capacity utilization climbed 0.5 percentage points to 76.9%, remaining 2.5 percentage points below its 1972–2025 average of 79.4%. For operators and analysts, the breakdown shows steady capital-goods demand without factory overheating: slack remains across manufacturing (75.9% utilization) and utilities (73.8%) even as headline output expands. [1][3]
Sources & details 3 sources
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- Federal Reserve · G.17 release (October 16, 2026)
Primary October 16 statistical release with preliminary September 2026 seasonally adjusted output and capacity utilization tables.
- Federal Reserve · G.17 archival bulletin PDF
Dated 18-page statistical bulletin containing detailed market and industry sub-indices.
- KPMG Economics · September industrial production analysis
Independent October 16 economic commentary corroborating the utility-driven headline bounce and manufacturing sub-trends.
Images & figures
Utilities drove September’s 0.7% headline industrial production gain; seasonally adjusted.
Euangelion · original data figure · Source · CC BY 4.0 · Download figure