MCLEAN, Va., May 15, 2026 — U.S. industrial production increased in April 2026 to the highest level since 2019, according to the latest report from the Board of Governors of the Federal Reserve System. Capacity utilization increased by 0.4 percentage points from March 2026. For manufacturers, both industrial production and capacity utilization increased at roughly the same rate as the overall index, 0.6% and 0.4%, respectively. Capacity utilization for durable goods manufacturing increased 0.9 percentage points, led by an aerospace sector whose capacity utilization increased 1.1 percentage points and an automotive sector that increased by 2.5 percentage points.
“The staggering investments that have been made in capital equipment in the first quarter of 2026 are beginning to hit shop floors and contribute productively to manufacturers’ operations,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “While capacity utilization is slightly below its longer-term trend, sustained consumer spending and business investment will necessitate additional orders of manufacturing technology as the industry grapples with the growing shortage of workers.”
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