US factory output hits one-year high as manufacturing sector recovers

US factory production increased by the most in nearly a year in January, offering hope for a manufacturing sector that has been squeezed by import tariffs and high interest rates.

Manufacturing output rose 0.6 per cent last month, the largest gain since February 2025, after being unchanged in December, the Federal Reserve said on Wednesday.

Economists had earlier forecast production for the sector, which accounts for 10.1 per cent of the economy, would rise 0.4 per cent. Output in December was previously reported to have risen 0.2 per cent.

Production at factories advanced by 2.4 per cent on a year-over-year basis in January.

Manufacturing has been hobbled by President Donald Trump’s sweeping tariffs, which business leaders say have raised costs for factories and consumers.

Trump has defended his punitive import duties as necessary to restore a long-declining domestic industrial base. The manufacturing sector lost more than 80,000 jobs last year.

Source link

Japan’s $36 Billion U.S. Investments: A New Era in Energy and Manufacturing

In a major economic development, President Donald Trump’s administration has unveiled three significant projects totaling $36 billion, all financed by Japan. These ventures mark the first wave of investments under Japan’s $550 billion commitment to the United States as part of a trade agreement that reduced tariffs on Japanese imports to 15%.

Among the projects is a $2.1 billion deepwater crude oil export facility in Texas, expected to generate up to $30 billion annually in exports. An $800 million industrial diamonds plant is set for Georgia, aimed at meeting the entire U.S. demand for synthetic diamond grit used in advanced manufacturing. The centerpiece, however, is a $33 billion natural gas-fired power plant in Ohio, slated to become the world’s largest of its kind by capacity.

The announcement follows recent discussions between U.S. Secretary of Commerce Howard Lutnick and Japan’s economic minister, Ryosei Akazawa. While the projects promise significant benefits, key issues, including financial specifics and tariff implications, remain under negotiation as both nations navigate this landmark collaboration.

(With inputs from agencies.)

Source link