U.S. industrial production increased slightly in May 2026 compared to April 2025 levels according to the latest report from the Board of Governors of the Federal Reserve System. Capacity utilization was unchanged at a level 3.2 percentage points below the long run average. For manufacturers, both industrial production and capacity utilization were flat. Manufacturers of defense and space equipment increased output more than 1% compared to the previous month.

“While overall levels of industrial production and capacity utilization are flat, sectors that most heavily rely on manufacturing technology are continuing to see increasing levels of output and utilization that could foreshadow additional capital expenditures in the remainder of the year,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “Since the end of 2024, capacity utilization for machinery manufacturers has steadily trended upward. With order activity already elevated and customer preferences turning toward more sophisticated machinery, the manufacturing technology industry needs to closely monitor capacity constraints to avoid a similar expansion in delivery times to that seen during the order frenzy following the recovery from the COVID-19 recession.”