Growth Indicator
Industrial Production Index (Monthly Change)
Updated 2026-03-18 · Monthly · Source: Federal Reserve · Next release: 2026-04-16
Historical Trend
| Date | Value |
|---|---|
| 2026-03 | -0.3% |
| 2026-02 | 0.7% |
| 2026-01 | 0.3% |
| 2025-12 | 0.5% |
| 2025-11 | 0.2% |
| 2025-10 | -0.4% |
| 2025-09 | -0.3% |
| 2025-08 | 0.8% |
| 2025-07 | -0.6% |
What This Means for Business
Industrial production fell 0.3% in March after strong February gains. Manufacturing, which accounts for about 75% of the index, has been volatile as companies adjust inventory levels. For executives in manufacturing and industrial sectors, the mixed readings suggest uneven demand rather than a clear downturn. The services sector remains the primary driver of U.S. economic growth.
About Industrial Production
The Industrial Production Index measures the real output of manufacturing, mining, and electric and gas utilities. It is a coincident indicator that moves with the business cycle and reflects the goods-producing sector of the economy.
Methodology
The Federal Reserve Board compiles data from various sources including industry surveys, utility output, and Census Bureau manufacturing reports. The index is set to 100 at a base year (currently 2017) and seasonally adjusted. Capacity utilization is calculated by comparing actual production to estimated maximum sustainable output.
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Frequently Asked Questions
Why is industrial production declining while the economy grows?
The U.S. economy has shifted toward services, which now represent about 80% of GDP. Manufacturing can contract while the overall economy grows because healthcare, technology, finance, and other service industries are expanding. Industrial production is most relevant for goods-producing sectors and supply chain analysis.