December U.S. Industrial Output Surges Beyond Market Expectations

BearMarketSurvivor · 2026-01-20T23:07:19+00:00

U.S. industrial production rose 0.4% in December, surpassing forecasts. Driven by a 2.6% increase in utilities, this strong performance indicates unexpected economic momentum and resilience in manufacturing amid cautious predictions.

BearMarketSurvivor

2026-01-20 23:07:19

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U.S. industrial production expanded significantly in December, outpacing analyst forecasts by a substantial margin. Data released by the Federal Reserve revealed a 0.4 percent monthly increase, matching November’s upwardly revised figure. Market participants had anticipated a more modest 0.1 percent gain, compared to the initially reported 0.2 percent rise in the prior month.

The stronger-than-forecast performance was primarily driven by a notable surge in the utilities sector. Utility output jumped 2.6 percent in December, reversing a 0.3 percent decline from November. This rebound in utilities production accounted for a meaningful portion of the overall industrial gains, suggesting improved demand in this key segment.

The divergence between actual and expected results points to underlying economic momentum that exceeded consensus estimates heading into year-end. The robust December reading in industrial production on the final month of the year underscores resilience in U.S. manufacturing and broader industrial activity during a period when economists had braced for a more cautious trajectory.

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