US Industrial Production Rises 0.7% in September Amid Sector Divergence
US industrial output increased by 0.7% in September, driven by high-value automation and artificial intelligence, while traditional commoditized manufacturing sectors faced pressure from high domestic costs and foreign competition.
Newsnibs Staff
- 2026-10-17
- Updated 3:51 PM UTC
US industrial output rose 0.7% in September from the previous month and 2.2% from a year earlier, according to ING economists cited in a report published Saturday. August's growth rate was also revised upward, by 0.1 percentage point.
The report attributes the manufacturing strength to tariffs, energy security, broader economic growth, and rapid adoption of artificial intelligence, which it says is fueling investment in high-value sectors. Pharmaceuticals, technology, transport, aerospace, electrical equipment and power generation are highly automated industries expected to keep growing at a solid pace.
Traditional, commoditized production tells a different story. The report says these sectors struggle to justify a "made-in-America" premium and face pressure from foreign competitors and retaliatory tariffs. High domestic production costs limit their competitiveness even with tariff protection in place.
Photo by Homa Appliances on Unsplash
