US Industrial Momentum Slows: Output Stabilizes, Capacity Utilization Improves Slightly But Remains Below Historical Average

Washington | EcoPulse24

The latest economic data paints a nuanced picture of slowing industrial momentum in the United States during October and November 2025. Industrial and manufacturing output remained at subdued levels, while capacity utilization showed a slight improvement, yet remained below its long-term average from 1972–2024.

Capacity utilization in the US rose to 76.0% in November from 75.9% in October, still about 3.5 percentage points below the historical average. Sector details:
- Manufacturing: Utilization held at 75.4%, 2.8 points below the long-term mean.
- Mining: Climbed to 86.3%, exceeding the historical average by 1.1 points, reflecting relative resilience.
- Utilities: Fell to 70.9%, remaining well below typical levels.

US manufacturing output was flat in November after shrinking 0.4% in October, indicating ongoing pressure, especially in heavy industry. Durable goods output dropped 0.1% in November (after a 0.5% fall in October), led by continued declines in automotive and parts (−5.1% in October, −1% in November). Notable exceptions included aerospace and specialized transport (+3.2% over two months) and computers/electronics (+2.3%). Nondurable goods output edged up 0.1% in November after falling 0.2% in October, with food, beverages, and tobacco up 1.5% and chemicals down 1.5% over the period.

Total industrial production grew by just 0.1% monthly in both October and November - the same as September - marking a slower pace than the average growth over the past year. Mining and utilities saw monthly volatility but achieved modest net gains over the two months.

Overall, the data signal an industrial sector growing more slowly than usual, with below-average capacity utilization, lackluster manufacturing recovery, and relatively stronger mining performance. These trends are significant for financial markets and monetary policymakers, highlighting an economy still distant from inflationary pressures tied to overheating industrial activity. Attention remains focused on domestic demand and interest rate trajectories heading into 2026.