MCLEAN, Va. Aug/ 18, 2026 — Total U.S. industrial production increased 0.2% in July 2026, a slight slowdown from the 0.3% growth in June, according to AMT – The Association For Manufacturing Technology. While the production of both durable and nondurable consumer goods contracted in July, the decline was more than offset by the rise in industrial equipment, space, and defense production. Capacity utilization increased slightly in July but remained below the long-run average.
“The pullback in production of consumer goods could be the result of the increasingly bifurcated consumer economy,” said Christopher Chidzik, principal economist of AMT. “Manufacturing technology orders came in at record levels over the first half of 2026. Some of these capital investments were surely motivated by increased demand for industrial, space and defense equipment. While a deterioration of consumer strength could quell some manufacturing technology orders, elevated demand from producers of business and military equipment could keep the industrial economy afloat during any upcoming period of declining consumer activity.”
