U.S. industrial production (IP) increased 0.4% in December 2025 compared with the previous month, according to the latest report from the Federal Reserve. On a quarterly basis, the indicator grew at an annual rate of 0.7% in the fourth quarter of 2025, pointing to moderate momentum in industrial activity at the end of the year.
The report shows that manufacturing output, which accounts for 75.6% of total industrial production, rose 0.2% in December. However, on an annualized basis, manufacturing activity declined 0.7% in the fourth quarter, reflecting uneven performance across subsectors.
Within manufacturing, the index for durable goods edged up 0.1% month over month, driven mainly by gains in primary metals production, which increased 2.4%. Output of electrical equipment, appliances, and components also rose 1.7%, while aerospace and other transportation equipment expanded 1.5%, according to the Federal Reserve.
In contrast, several industries recorded notable declines. Wood products, nonmetallic mineral products, and motor vehicles and parts each posted drops of at least 1%, indicating continued weakness in certain manufacturing segments amid softer demand and ongoing adjustments in supply chains.
Production of nondurable goods increased 0.3% in December, supported by higher output in food, beverage, and tobacco products, as well as petroleum and coal products, and plastics and rubber.
The utilities sector posted a strong gain of 2.6%, largely due to a 12% surge in the natural gas index, which more than offset a 0.7% decline in mining activity during the month.
