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US manufacturing output posts biggest gain in 11 months in January

U.S. manufacturing output rose 0.6% in January, driven by strong gains in durable and nondurable goods and boosted by equipment orders and capital spending, Federal Reserve data shows.

  • On Wednesday, the Federal Reserve said U.S. manufacturing output rose 0.6% in January, marking the largest monthly gain since February, 2025.
  • Firmer equipment orders at the end of 2025 and rising investment demand supported the rise, despite the sector squeezed by import tariffs and high interest rates, which business leaders say raised costs.
  • Sector breakdown showed durable and nondurable gains, with durable goods output rising 0.8%, nondurable goods increasing 0.4, utilities jumping 2.1%, and mining falling 0.2.
  • Pushing forecasts, the Federal Reserve Bank of Atlanta's GDPNow projected a 2.5% annualized rise in equipment outlays, with core capital goods shipments up 8.2% and the Commerce Department's Feb. 20 GDP estimate awaited; the figures were welcomed by President Donald Trump and his economic team.
  • Despite year-over-year gains, production advanced 2.4% and industrial output rose 2.3%, yet the manufacturing sector lost more than 80,000 jobs as economists expect AI-driven gains and tax-cut support.
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The Detroit NewsThe Detroit News
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The Globe & MailThe Globe & Mail
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U.S. manufacturing output posts biggest gain in 11 months in January

Manufacturing output rose 0.6% last month, the largest gain since February 2025.

·Detroit, United States
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Bloomberg broke the news in United States on Wednesday, February 18, 2026.
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