G17: G.17 Annual Revision Released

The Federal Reserve has revised its index of industrial production (IP) and the related measures of capacity and capacity utilization. On net, manufacturing production, capacity growth, and utilization are revised down over the past five years. Manufacturing output now declines more than 1-1/2%, on net, from Feb 2020 through Aug 2025, whereas output was previously estimated to have risen over that period. Manufacturing capacity growth now averages 1/2% per year from 2021—2025, 1/4ppt lower than previously estimated. Aug 2025 manufacturing utilization was 75.6%, 1-1/4ppts below its previous estimate and 2-1/2ppts below its long-run average.