During this period, U.S. industrial production skyrocketed. By the end of the year, it was up 2.0% shy of December 2024. Growth was propelled by high-tech sectors. Furthermore, in the background, the One Big Beautiful Bill Act laid the groundwork for very positive economic policies to be introduced, and that was crucial. These legislative and regulatory developments have combined to create a perfect storm for industrial recruitment opportunities, especially in tech and utility industries.
The One Big Beautiful Bill Act would be a radical economic transformation. By making bonus depreciation permanent, it sends a needed signal to businesses that they should begin investing in capital improvements now. Further, the law brought about some helpful tax changes around expensing and deductions for businesses that are otherwise able to help fuel growth. So many companies will most certainly jump at the opportunity to utilize these provisions, fortifying state- and national-level production capabilities even more.
Key Contributions to Growth
Strengthening utility output had a big hand in lifting the overall total, with utility output gaining 2.3% over the last year. Data centers have been the biggest propellant of this surge. Their demand for power is increasing every day. As these facilities increase, their energy use is projected to continue to be a leading force behind utility generation growth.
High-tech manufacturing today only accounts for roughly 3% of domestic manufacturing. It’s grown to be an important bright spot across the broader overall industrial production scene. Select high-tech industries initially experienced jumps of more than 10% in 2025, highlighting the sector’s promise for significant growth. Industry analysts expect high-tech investment to once more be the key driver for industrial growth over the next year.
Mining output was a biggest positive contributor, up 1.7 percent on the year. This sector experienced output declines in three of the last four months of 2025. This dramatic increase is further proof that volatility is rocking the market. The net performance of mining serves as a microcosm to the wider picture of industrial production and further illuminates the industry’s two-sided struggle across disparate sectors.
Capacity Utilization Trends
Capacity utilization ticked up to 76.3% in December — an encouraging, if modest, advancement that’s still far short of its long-run average. This is a very positive statistic that production is going up. Yet across the economy there are still vast areas for growth and to be much more efficient. The gradual increase in capacity utilization suggests that manufacturers may be beginning to optimize their production processes as demand recovers.
Just like the overall economic climate, broad manufacturing activity rebounded strongly as the year finished out. This increase only slightly outpaced the overall industrial production increase. The sector’s strength and recovery during this time adds to the belief that an overall recovery has begun in every sector and industry. By December, industrial production was blasting off and came in at a stunningly strong growth rate of 0.4%. This followed a solidly upwardly revised November performance, which gained a solid 0.4%.
Looking Ahead
Unfortunately, as industries start looking past 2026, signs of recovery for capital expenditures are starting to materialize – but only in a very minor way. The hook Favorable tax policies coupled with booming demand for high-tech products has those industries primed to ride a wave of growth. Stakeholders would like to believe that high-tech investments will always have a place at the core of industrial performance.