Industrial Production Unchanged in August, Manufacturing Sector Sees First Decline of 2026
By TopHolding Editorial · Sunday, September 20, 2026 at 8:00 PM
Industrial production held steady in August after four months of growth, falling short of consensus expectations. Weakness in the manufacturing sector, particularly in autos and high-tech equipment, contributed to the overall flat reading.
According to Bryce Gill, Economist, Brian S. Wesbury, Chief Economist, and Robert Stein, CFA, Deputy Chief Economist at First Trust Portfolios, industrial production remained unchanged in August, below the consensus expectation of a 0.3% gain. Including revisions from previous months, the overall change was +0.1%. Utilities output increased by 1.7%, and mining activity rose by 0.1% during the month.
First Trust's economists note that manufacturing, which excludes mining and utilities, experienced a 0.3% decline in August, or -0.2% when accounting for prior revisions. This marked the first decline for manufacturing in 2026. Auto production dropped by 1.2%, while non-auto manufacturing fell by 0.2%. Over the past year, auto production is down 0.9%, whereas non-auto manufacturing has seen an increase of 0.9%. The report highlights that the production of high-tech equipment, despite declining 0.1% in August, has shown significant year-over-year growth of 12.5%.
Wesbury and his team observe that overall capacity utilization was unchanged at 76.3% in August. Manufacturing capacity utilization, however, declined to 75.7% from 76.0%. The economists indicate that industrial production
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.