Manufacturing economy
US factory output rose 0.3% in September 2026; utilization hit 75.9%
0.3%. That's how much US manufacturing output rose in September 2026, according to the Federal Reserve. Total industrial production, which adds mining and utilities, rose 0.7%.
The quarter tells a split story. Durable goods output grew at a 3.8% annual rate in the third quarter, driven in part by a 28.4% gain in semiconductors and related electronic components, while nondurable output fell 1.6%. Motor vehicles and parts dropped 3.0% in September alone.
Factories ran at 75.9% of capacity, 2.3 points below the long-run average. These are preliminary figures; this page traces each to the Fed's release.
Data covers US industrial production and capacity utilization for September and the third quarter of 2026 (Federal Reserve G.17, released October 16, 2026; preliminary). Published 2026-10-16. Last reviewed 2026-10-16. Last updated 2026-10-16. Edited by Mike Ramsey / Reliable Media.
The figures and where they come from
Each figure is rated for how safely you can cite it today. Ratings judge current usability, not whether a number was ever correct.
| Figure | What it is | Source | Citation Confidence | Notes |
|---|---|---|---|---|
| +0.7% | Industrial production, September 2026 | [A] | Medium | Manufacturing, mining and utilities combined. Preliminary. |
| +0.3% | Manufacturing output, September 2026 | [A] | Medium | Third-quarter manufacturing output grew at a 0.7% annual rate. Preliminary. |
| +3.8% | Durable manufacturing, Q3 2026 (annual rate) | [A] | Medium | An annualized quarterly rate. |
| +28.4% | Semiconductors and related components, Q3 2026 | [A] | Medium | The Fed names this as a driver of the durable goods gain. |
| -1.6% | Nondurable manufacturing, Q3 2026 (annual rate) | [A] | Medium | An annualized quarterly rate. |
| -3.0% | Motor vehicles and parts, September 2026 | [A] | Medium | A one-month change. |
| 75.9% | Manufacturing capacity utilization, September 2026 | [A] | Medium | The long-run average covers 1972 to 2025. |
| +2.2% | Total industrial production vs. a year earlier | [A] | Medium | September 2026 against September 2025. |
Why the numbers disagree
These are preliminary numbers. The Fed marks September as preliminary and revises recent months in later releases, so treat the 0.3% and 0.7% as first readings.
Industrial production and manufacturing output are different series. The 0.7% headline includes mining and utilities, and utilities rose 3.5% in September. Manufacturing alone rose 0.3%.
Monthly and quarterly rates aren't comparable as printed. September's changes are one-month moves; the third-quarter figures, like durables' 3.8%, are annualized.
How to cite these figures
Cite manufacturing separately from the headline: Federal Reserve G.17, manufacturing output +0.3% in September 2026 (preliminary).
Label annualized quarterly rates as such, for example "durable goods output grew at a 3.8% annual rate in the third quarter of 2026".
When you quote capacity utilization, give the comparison the Fed gives: 75.9%, 2.3 points below the 1972 to 2025 average.
Where people go wrong
Quoting 0.7% as factory growth. That's total industrial production; manufacturing rose 0.3%.
Presenting the semiconductor 28.4% as a September jump. It's a third-quarter figure.
Treating preliminary numbers as final.
How we checked
All figures come from the Federal Reserve's G.17 release for September 2026, published October 16, 2026. We cite the dated release URL so the link stays on this edition.
Every figure rates Medium because the Fed labels the most recent month preliminary and revises it in subsequent releases.
Full source list
Primary sources, with live links. Every figure above traces to one of these.
- [A]Board of Governors of the Federal Reserve SystemOctober 16, 2026
Federal Reserve, "G.17 Industrial Production and Capacity Utilization" (September 2026)
https://www.federalreserve.gov/releases/g17/20261016/default.htm
Common questions
- Did US manufacturing output grow in September 2026?
- Yes, by 0.3%, according to the Federal Reserve's preliminary estimate. Total industrial production rose 0.7%.
- What is US factory capacity utilization?
- 75.9% in September 2026, up 0.1 point and 2.3 points below its 1972 to 2025 average, per the Fed.
- Which industries drove manufacturing in Q3 2026?
- Durable goods grew at a 3.8% annual rate, driven in part by a 28.4% gain in semiconductors and related electronic components. Nondurables fell 1.6%.
- Is US industrial production higher than a year ago?
- Yes. Total industrial production in September 2026 was 2.2% above its year-earlier level.
More data, traced to source
- Robots multiplied. US factory output barely moved. What the numbers show
The world's operating robot fleet passed 4.6 million while US industrial production sits barely above its baseline and runs below capacity. Automation is not tracking output the way people assume.
- ISM manufacturing PMI was 54.5 in September 2026, a ninth month of growth
The ISM Manufacturing PMI registered 54.5 in September 2026, down 0.1 from August and the ninth straight month of expansion. New orders rose to 55.3, while the prices index jumped 6.8 points to 77.9.
- US manufacturing productivity rose 2.4% in Q2 2026 as output jumped 5.4%
BLS revised data show US manufacturing labor productivity up 2.4% at an annual rate in Q2 2026, as output grew 5.4%, the most since 2021. Unit labor costs fell 0.3%, their first decline since the second quarter of 2021.
- Is US manufacturing declining? The share of GDP and the world it holds
US manufacturing is 12% of the economy, and America's share of global manufacturing fell from 28% to 16.5% before recovering to 18%. The numbers behind 'US manufacturing is declining' are more complicated than the slogan.