Industrial production in February edged up a seasonally adjusted 0.2% over the month, above the estimate of 0.1%, according to the Federal Reserve. This followed a monthly increase of 0.7% in January. Despite the positive reading, there was a slowdown among industry groups such as computers and peripheral equipment, which came in at -0.3%, down from 3.4% in January. Capacity utilization for the industry remained the same at 76.3%, below the long-run average of 79.4%.
The ABA Office of the Chief Economist views the increase in the February reading as consistent with early 2026 trends, as industrial production growth has slowed but is still intact after sluggish output results in the second half of 2025. Against a backdrop of elevated global uncertainty for exposed producers, industrial output expansion provides modest support for banks’ C&I portfolios, pointing to firmer loan demand and higher credit utilization.
