U.S. manufacturing stalls, held back by durable goods
July 17, 2026 10:06 AM, EDT
Aircraft manufacturing in Renton, Wash. (M. Scott Brauer/Bloomberg)
Key Takeaways:
- U.S. manufacturing production stalled in June, dragged down by a decline in durable goods such as machinery.
- Durable goods declines, including machinery, wood products, electrical equipment and appliances, helped stall factory output despite gains in utilities and mining.
- Capacity utilization at factories fell slightly to 75.7% as renewed U.S.-Iran hostilities raised risks for energy costs and demand.
U.S. manufacturing production stalled in June, dragged down by a decline in durable goods such as machinery.
Factory output, which accounts for three-fourths of total industrial production, was unchanged after an upwardly revised 0.1% increase in May, Federal Reserve data out July 17 showed.
The median estimate in a Bloomberg survey of economists called for a 0.1% advance.
Overall industrial production rose 0.1% for a second month. And output at utilities and mining each increased 0.4%, according to the report.
Within durables, other categories that also declined included wood products, electrical equipment and appliances.
Meanwhile, production of computer and electronic products and defense and space equipment, which both saw strong gains in the two previous months, slowed in June.
June #IndustrialProduction: Total +0.1%, Mfg. +0.0%, Utilities +0.4%, Mining +0.4%; #CapacityUtilization 76.1% https://t.co/nYuGKYaV9g #FedData
— Federal Reserve (@federalreserve) July 17, 2026
The report, showing two months of stagnation, contrasts with other recent data signaling some recovery in manufacturing. But an upturn in energy prices amid renewed hostilities between the U.S. and Iran risks driving up costs and sapping demand.
In the Fed report, capacity utilization at factories, a measure of potential output being used, fell slightly to 75.7%. The overall industrial utilization rate was unchanged.
