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Business Environment Profiles - United States

Industrial production index

Published: 26 June 2025

Key Metrics

Industrial production index

Total (2025)

104 Index

Annualized Growth 2020-25

1.7 %

Definition of Industrial production index

The industrial production index measures the output from the mining, manufacturing, electric and gas industries. The data for this report is sourced from the Federal Reserve and is indexed to 2017. The values presented in this report are annual figures, derived from equally weighted monthly averages.

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Recent Trends – Industrial production index

Industrial production has historically been driven by technological advancements, resource availability and economic policies. The Industrial Revolution marked a shift from manual labor to mechanized production, with innovations like the steam engine and assembly lines revolutionizing manufacturing. Access to natural resources, development of transportation networks and supportive economic policies encouraged industrial growth. Global trade expansion, particularly through colonial empires, provided raw materials and markets for industrial goods. These factors collectively laid the foundation for industrialization in Europe, North America, and later Asia.

Over the past five years, industrial production has been shaped by technological integration, reshoring trends and sustainability initiatives. The adoption of Industry 4.0 technologies, such as AI, robotics and IoT, has enhanced efficiency and reduced costs. In response to supply chain disruptions and geopolitical tensions, many companies have relocated production closer to domestic markets, supported by government incentives. Sustainability efforts have driven investments in renewable energy technologies and sustainable manufacturing practices. Economic recovery post-pandemic, evolving workforce dynamics and rebounding global demand have also contributed to industrial growth, despite challenges like inflationary pressures. Uncertain tariff policy has slowed industrial production.

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5-Year Outlook – Industrial production index

Looking ahead to the next five years, industrial production will be driven by further technologic...

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