Manufacturing Output Rises 0.3% in September

U.S. factory production edged up after an August dip, while consumer confidence climbed in October.

Updated on Nov. 2, 2026 in Economic Indicators

Manufacturing Output Rises 0.3% in September

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Manufacturing output rose 0.3% in September after a 0.2% decline in August, and industrial production increased 0.7% in the same month. Consumer confidence rose 7.5 points in October to 91.7.

Why it matters

The gains point to continued momentum in the industrial sector and a broadly firmer economic backdrop heading into year-end. Real GDP grew at an annual rate of 3.4% in the third quarter of 2026, with consumer spending, investment and government spending contributing.

Manufacturing production stood at 98.4% of its 2017 average and capacity utilization reached 75.9%, 2.3 percentage points below its 1972-2025 long-run average. Whether the September output gain persists into coming months remains unclear from the available data.

The details

Industrial production rose 0.7% in September, with consumer nondurables output up 1.2% and chemical products output up 1.4%. Consumer confidence also rose 7.5 points in October to 91.7, though the Expectations Index stayed below the recession-signal threshold of 80.

September 2025 serves as the baseline year for manufacturing growth comparisons.
August: manufacturing output dipped 0.2%.
September: manufacturing output rose 0.3% and industrial production rose 0.7%.
October: consumer confidence rose 7.5 points to 91.7.
Third quarter of 2026: real GDP grew at a 3.4% annual rate.

Economic Indicators

Capacity utilization at 75.9% sits 2.3 percentage points below the Federal Reserve's 1972-2025 long-run average, leaving room for further industrial expansion before supply constraints bite. The September gain keeps factory activity on that gradual recovery path rather than signaling a capacity squeeze.

Steady factory output and firmer consumer confidence can influence hiring conditions and price trends that affect household budgets. Readers tracking their own spending or job prospects may find the consumer confidence gain a useful signal of near-term sentiment.

The takeaway

Monthly manufacturing and confidence readings offer a useful checkpoint on whether the economy is gaining or losing momentum. Tracking capacity utilization alongside output helps show how much room remains before supply pressures start to lift prices.