McLean, Va. (January 16, 2026) — Industrial production increased 0.4% and capacity utilization increased by 0.2% across the U.S. economy from November to December 2025, according to the latest report issued by the Board of Governors of the Federal Reserve System. Manufacturers underperformed the overall economy, with industrial production increasing 0.2% and capacity utilization remaining flat.
Among manufacturers of machinery, industrial production increased at an annualized rate of 6.0% in 2025, which coincides with the large uptick in manufacturing technology orders measured by the U.S. Manufacturing Technology Orders Report published by AMT – The Association For Manufacturing Technology. Capacity utilization among machinery manufacturers rose in December 2025 for the fourth consecutive month.
“Overall, capacity constraints are below historical averages. Industries relying heavily on manufacturing technology, like the aerospace sector, have been experiencing the pinch of increasing utilization rates and are responding with additional orders of capital equipment,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “As the metalworking machinery ordered in late 2025 begins to land on shop floors, manufacturers will be in a position to increase output through increased capacity or greater efficiency, setting the stage for further increases in manufacturing output through 2026.”
Stay connected to the pulse of the manufacturing industry with the latest USMTO reports, and be sure to attend the 2026 AMT Winter Economic Forum virtually on Jan. 30 to see the latest outlook for manufacturing technology orders in the coming year.
