Industrial production index in the US - Data and Analysis (1980-2032)

Industrial production is set to expand 1.5% in 2026, reaching an index value of 102.8 and expanding at a CAGR of 0.7% over the past five years. Industrial production broadly measures output from the mining, manufacturing, electric and gas industries, with the index benchmarked to 2017. Growth this year has been supported by AI-driven investment in the manufacturing sector, which has counterbalanced headwinds from import tariffs and elevated oil prices.Over the past five years, industrial production has been shaped by a confluence of structural and cyclical forces. The integration of technologies including AI, robotics and IoT has enhanced production efficiency and helped offset rising input costs across manufacturing facilities. Reshoring trends have accelerated meaningfully over this period, creating hundreds of thousands of jobs and reducing supply chain costs. These efforts were supported by legislation including the CHIPS and Science Act and the Inflation Reduction Act, which directed hundreds of billions in subsidies toward domestic industrial capacity.The post-pandemic economic recovery provided an important tailwind in the early part of the five-year period, with rebounding global demand helping lift output from the sharp contraction recorded in 2020. However, inflationary pressures, including elevated producer prices for final demand goods, complicated the recovery by raising input costs for manufacturers throughout 2022 and 2023. Geopolitical tensions, particularly disruptions linked to the conflict in the Middle East and US-China trade friction, prompted businesses to stockpile inventory and accelerate domestic sourcing strategies.