Industrial measures moderate in February
By Kristin Bartschi
Industrial production increased 0.2%, and capacity utilization remained flat across the U.S. economy from January to February 2026, according to the latest report issued by the Board of Governors of the Federal Reserve System. For manufacturers, both industrial production and capacity utilization grew at the same rate as the overall index, 0.2% and 0.0%, respectively.
“Industrial production grew in line with expectations, and as the machinery ordered in December 2025 begins to hit shop floors, it is not unexpected to see capacity utilization remain flat or decline slightly,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “While the Federal Reserve meeting later this week is not expected to include a rate cut, a positive assessment of the labor market – despite some recent signs of weakness – could calm businesses that may be wary of additional capital investment amid rising uncertainty as war in the Middle East disrupts energy markets and supply chains.”
INDUSTRIAL SUPPLY MAGAZINE
The January/February issue of Industrial Supply magazine features an in-depth cover story about Grainger. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
