Industrial production gained 0.5 percent in February despite a reversal of the weather-related surge in utility output in January. The gain pushes total industrial output to its highest level since December 2018, and clearly above the December 2019 level prior to the pandemic (see first chart). Over the past year, total industrial output is up 7.5 percent.

Total industrial capacity utilization increased 0.3 points to 77.6 percent from 76.3 percent in January, the highest since March 2019 (see first chart). However, total capacity utilization remains well below the long-term (1972 through 2021) average of 79.5 percent.

Manufacturing output – about 74 percent of total output – posted a more robust 1.2 percent increase for the month (see first chart). Manufacturing output is at its highest level since September 2018 and is 2.9 percent above its January 2019 pre-pandemic level (see first chart). From a year ago, manufacturing output is up 7.4 percent.