Industrial Production Rises 0.7% in September as Utilities Output Jumps 3.5%
The Federal Reserve's Oct. 16 G.17 release shows September industrial production up 0.7%, manufacturing up 0.3% and capacity utilization at 76.9%. It is new growth data, not a Fed decision or a mortgage rate quote.
By Christopher Salem · 3 min read
U.S. industrial production rose 0.7% in September after edging up 0.1% in August, the Federal Reserve reported Oct. 16, 2026, in its monthly G.17 release, published at 9:15 a.m. (Federal Reserve G.17). Utilities output jumped 3.5%, while manufacturing rose 0.3%.
| Measure | September 2026 |
|---|---|
| Total industrial production, monthly change | +0.7% |
| Manufacturing, monthly change | +0.3% |
| Mining, monthly change | +0.2% |
| Utilities, monthly change | +3.5% |
| Total industrial production, change from a year earlier | +2.2% |
| Capacity utilization, total industry | 76.9% |
Source: Federal Reserve Board, G.17 Industrial Production and Capacity Utilization, released Oct. 16, 2026. Data for September 2026, seasonally adjusted.
What the report shows
Total output stood at 104.0% of its 2017 average and 2.2% above its level a year earlier, according to the Fed. In the third quarter, industrial production increased at a 2.8% annual rate.
Capacity utilization rose to 76.9%, which the Fed said is 2.5 percentage points below its 1972 to 2025 average. Manufacturing utilization was 75.9%.
Within manufacturing, the Fed reported that output of motor vehicles and parts fell 3.0% in September, while primary metals, machinery and electrical equipment posted gains of 1% or more. The index for construction supplies rose 1.0%.
Why mortgage professionals may notice it
Industrial production is one of several measures of economic activity that markets and policymakers watch. A stronger month of output is new information about growth, but it is not a Federal Reserve policy decision, and it does not by itself set mortgage rates. Lenders price loans from current market conditions, which reflect many inputs at once.
The utilities gain also deserves care. Utility output can swing with weather and energy demand, so a single month's jump in that component says less about the broader economy than a steady trend would.
Loan officers fielding client questions can describe this as one data point in a busy week of releases. Borrowers deciding when to lock should rely on a lender's live pricing, not on a single economic report.
What comes next
The Fed said it plans to publish its annual revision to industrial production and capacity utilization on Nov. 24, 2026, with 2022 as the new base year. Revised figures may change the history behind this month's comparison.
Watch: September industrial production in 15 seconds
Transcript (on-screen text, no narration; original instrumental music): INDUSTRIAL PRODUCTION · SEPTEMBER 2026. Industrial production rose 0.7% in September. After a 0.1% gain in August · seasonally adjusted. INDUSTRIAL PRODUCTION · MONTH OVER MONTH. +0.7% , September, seasonally adjusted. AFTER +0.1% IN AUGUST. SEPTEMBER · MAJOR INDUSTRY GROUPS. Utilities jumped 3.5%. Manufacturing +0.3% · Utilities +3.5% · Mining +0.2%. Total industrial production: +2.2% above its level a year earlier. Capacity utilization, September: 76.9% , 2.5 points below its 1972–2025 average. FEDERAL RESERVE G.17 · SEPTEMBER 2026 DATA. New growth data, not a Fed decision or a mortgage rate quote. +0.7% industrial production (Sept., m/m) · +2.2% vs. a year earlier · 76.9% capacity utilization.
Photo: The Federal Reserve's Marriner S. Eccles Building in Washington, by the Federal Reserve (2011), via Wikimedia Commons, public domain; cropped.
.jpg){kind=link}