Washington, D.C. – March 2025 – The U.S. industrial sector saw a significant resurgence in February, marking the strongest expansion in over a year and outpacing economists’ expectations. According to the latest data from the Federal Reserve, industrial production surged by 0.7 percent, more than triple the anticipated 0.2 percent increase, as the manufacturing sector rebounded sharply in President Trump’s first full month in office.

Manufacturing output, which makes up about three-fourths of total industrial production, posted a robust 0.9 percent gain, the largest monthly increase in a year. A key driver of this growth was the automotive sector, where production of motor vehicles and parts skyrocketed by 8.5 percent. This surge contrasts sharply with the previous administration’s final year, during which auto output declined by an average of 0.5 percent per month.

The strength of February’s industrial data provides a stark contrast to other weaker economic indicators seen in recent weeks, such as sluggish retail sales and softer business sentiment. The latest figures suggest that despite broader economic uncertainties, industrial production is gaining significant momentum.

Beyond autos, business equipment and construction supplies also recorded gains, reflecting broad-based strength across key segments of the economy. The mining sector, which includes oil and gas drilling, also contributed to the expansion, rising 2.8 percent in February.

With these gains, manufacturing output has now reached its highest level since October 2022, signaling a strong comeback after two years of stagnation. The renewed industrial strength suggests that companies are ramping up production, even as they adjust to shifts in trade policy and economic uncertainty.

Another key measure, capacity utilization, which tracks how fully firms are using their resources, rose to 78.2 percent overall—the highest level since June of last year—while factory utilization climbed to 77 percent. Higher utilization rates often indicate growing confidence in future demand and a need for expanded production capacity.

After an extended period of sluggish growth under President Biden, the latest data suggests that the industrial sector may be experiencing a real resurgence, potentially signaling a broader economic revival.