Industrial Production and Manufacturing: December’s Boost

Industrial production (IP) had a standout month in December 2024, posting a 0.9% month-over-month (m/m) gain, the strongest since February. This improvement was driven by healthy increases across manufacturing, mining, and utilities.

• Mining surged 1.8%, while utilities jumped 2.1%.
• Manufacturing rose 0.6%, matching August for its best gain since May.

The resolution of a Boeing strike contributed 0.2 percentage points to the overall IP increase. Notably, aerospace and transportation equipment production soared by 6.3%.

Manufacturing: Mixed Performance

Within manufacturing:

• Nondurables led with a 0.7% m/m gain, slightly outpacing durables at 0.6%.
• Automotive production fell 0.6%, but excluding autos, manufacturing rose a solid 0.7%.

Annual Trends

For 2024, IP dipped 0.3%, while manufacturing output declined 0.5%—marking the second consecutive year of declines. Despite these annual challenges, December showed IP up 0.5% year-over-year, and manufacturing held steady.

Key Takeaway

December’s performance points to a potential turnaround for industrial production and manufacturing. With strong momentum heading into 2025, there’s hope for continued growth in these sectors.

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