❓WHAT HAPPENED: Industrial Production in the U.S. surged 0.7 percent in January, exceeding expectations and marking the third consecutive monthly increase.
👤WHO WAS INVOLVED: U.S. manufacturers and industrial sectors, along with President Donald J. Trump and American consumers.
📍WHEN & WHERE: January 2026, across the United States.
🎯IMPACT: Positive trends in industrial production and manufacturing output reflect continued economic resilience.
Industrial Production surged 0.7 percent in January, surpassing the expected 0.4 percent and improving significantly from December’s revised 0.2 percent growth. The production data indicates that the U.S. economy continues to maintain a position of strength despite establishment economists’ claims that a slowdown is imminent.
Notably, this marks the third consecutive month of growth in Industrial Production, bringing annual growth to 2.3 percent, the strongest since September 2022. Manufacturing output also rose 0.6 percent in January, exceeding expectations and representing the best monthly gain since February 2025.
Meanwhile, capacity utilization increased to 76.2 percent, continuing a positive trend that began near the start of President Donald J. Trump‘s second term—though it fell slightly below projections. Additionally, the Institute for Supply Management (ISM) Manufacturing Index saw a sharp rise in January, diverging from the ‘soft’ data trends observed throughout the year.
When combined with pricing and other economic data, the trends suggest the U.S. economy continues to stabilize and strengthen heading into the 2026 midterm elections, despite counterclaims by some economists who have continually argued the administration’s tariff policies will trigger a downturn.
The National Pulse reported earlier on Wednesday that the Trump White House’s Director of the National Economic Council, Kevin Hassett, took aim at a research paper published by the New York Federal Reserve Bank that claims tariff costs are predominantly being passed on to American consumers. “The paper is an embarrassment,” Hassett said, adding, “It’s, I think, the worst paper I’ve ever seen in the history of the Federal Reserve System.”
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