Industrial Production Surges 0.7% in September, Exceeding Expectations
By TopHolding Editorial · Thursday, October 15, 2026 at 8:00 PM
Photo: Ian Greig / CC BY-SA 2.0 · Wikimedia Commons
Industrial production saw a significant 0.7% increase in September, surpassing consensus forecasts, driven by broad-based gains and a notable surge in utilities output. This marks the sixth consecutive month of increased activity, with manufacturing ex-autos showing a consistent upward trend.
According to Bryce Gill, Economist, Brian S. Wesbury, Chief Economist, and Robert Stein, CFA, Deputy Chief Economist at First Trust Portfolios, industrial production increased by 0.7% in September, significantly exceeding the consensus expectation of a 0.4% gain. This figure includes a 0.9% rise when accounting for revisions to prior months. Utilities output experienced a substantial 3.5% increase, and mining activity grew by 0.2% during the month.
Manufacturing, excluding mining and utilities, increased by 0.3% in September. Auto production declined by 3.0%, while non-auto manufacturing saw a 0.6% rise. The economists note that manufacturing excluding autos, which they consider a "core" measure, has been on a consistent upward trend since the start of 2025. High-tech equipment production showed robust growth, increasing by 1.5% in September and standing 17.6% higher than a year ago. First Trust's economists highlight that this sector's strength is due to factors like data center construction and the reshoring of semiconductor production.
Overall capacity utilization rose to 76.9% in September from 76.4% in August, with manufacturing capacity utilization increasing slightly to 75.9% from 75.8%. The report also mentions that the manufacturing of business equipment remained unchanged in September but has increased by 6.8% over the past year. Mining activity's 0.2% gain was primarily driven by increases in oil and gas extraction, which offset declines in drilling and other mineral extraction. Utilities output's 3.5% gain continues an upward trend since 2023, which the economists attribute to increased demand from "power hungry data centers." Import prices rose 1.1% in September, with an 8.1% increase over the past year, while export prices were up 2.2% in September and 11.6% annually.
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Key terms:
1. Industrial Production: A measure of the total output of all factories, mines, and utilities in a country.
2. Capacity Utilization: A measure of the proportion of potential output that is actually being realized; it indicates how intensively the industrial sector is operating.
3. High-tech equipment: This category includes advanced electronic components and machinery, often associated with computing, telecommunications, and other sophisticated technologies.
Source: Bryce Gill, Economist; Brian S. Wesbury, Chief Economist; Robert Stein, CFA, Deputy Chief Economist, First Trust Portfolios — Data Watch. Read the original at ftportfolios.com.
