Domestic Production Statistics in US 2026 | Key Facts

Domestic Production in US

Domestic Production in the US 2026

The United States continues to stand as one of the world’s most formidable production economies, spanning energy, agriculture, manufacturing, and industrial output. As of late February 2026, domestic production in the US is shaped by a combination of record-breaking energy output, extraordinary natural gas market volatility triggered by Winter Storm Fern, a landmark corn harvest, and a manufacturing sector that surprised economists with its strongest monthly industrial output gain in nearly a year. From oil fields in the Permian Basin to cornfields across the Corn Belt, the American production landscape is both vast and rapidly evolving. Understanding where the country stands requires pulling from the most current data available — including the EIA’s February 10, 2026 Short-Term Energy Outlook (STEO), the BEA’s February 20, 2026 GDP Advance Estimate, and the Federal Reserve’s February 18, 2026 G.17 Industrial Production Release — the freshest official government snapshots available as of today, February 27, 2026.

What makes domestic production in the US 2026 especially compelling right now is the sheer breadth of headline milestones landing in a single month. Real GDP grew 2.2 percent for full-year 2025 per the BEA’s most recent release. US crude oil production for the week ending February 20, 2026 stood at 13.702 million barrels per day (b/d) — just below the all-time weekly record of 13.862 million b/d set in the week of November 7, 2025. Henry Hub natural gas prices hit a nominal record of $30.72/MMBtu on January 23, 2026, driven by Winter Storm Fern’s freeze-offs and the largest weekly storage withdrawal ever recorded: 360 billion cubic feet (Bcf) for the week ending January 30, 2026. Meanwhile, the ISM Manufacturing PMI surged to 52.6 in January 2026 — the first expansion reading in 12 months — and industrial production jumped 0.7 percent in January 2026, its strongest monthly advance since February 2025. These are not background statistics — they are live signals of where American production stands heading into the heart of 2026.

Interesting Facts About Domestic Production in the US 2026

FactLatest Detail
US Real GDP – Full Year 2025+2.2 percent (BEA advance estimate, Feb 20, 2026)
US Real GDP – Q3 2025+4.4 percent annual rate (highest quarter of 2025)
US Real GDP – Q4 2025+1.4 percent annual rate
US Nominal GDP – Q4 2025 Level$31,490 billion (SAAR, BEA/FRED, Feb 20, 2026)
Govt Shutdown Impact on Q4 2025 GDP-1.0 percentage point subtracted (BEA estimate)
Weekly Crude Oil Production – Feb 20, 202613.702 million b/d (EIA, released Feb 25, 2026)
All-Time Weekly Crude Oil Production Record13.862 million b/d (week of Nov 7, 2025, EIA)
2025 Annual Crude Oil Production Average13.60 million b/d — all-time annual US record
EIA 2026 Crude Oil Production Forecast13.60 million b/d (EIA February 2026 STEO)
Brent Crude Oil Price Forecast – 2026 Avg$58/barrel (EIA February 2026 STEO)
WTI Crude Oil Spot Price – Feb 6, 2026$63.77/barrel (EIA Weekly Petroleum Status Report)
Active US Oil Rigs – Week of Feb 20, 2026409 rigs (Baker Hughes)
Henry Hub Nat Gas – January 2026 Monthly Avg$7.72/MMBtu — highest monthly avg since Sept 2022
Henry Hub Intraday Nominal Record$30.72/MMBtu (January 23, 2026)
Largest-Ever Weekly Natural Gas Storage Withdrawal360 Bcf (week ending January 30, 2026)
Natural Gas Storage – Week Ending Feb 13, 20262,070 Bcf (59 Bcf below year-ago; 123 Bcf below 5-yr avg)
Henry Hub Price Forecast – Full Year 2026 Avg$4.30/MMBtu (EIA February 2026 STEO)
US Dry Natural Gas Production Growth – 2026+2% (~2 Bcf/d) above 2025 levels
Crude Oil Refinery Inputs – Week of Feb 13, 202616.1 million b/d at 91.0% operable capacity
Gasoline Production – Week of Feb 13, 20269.4 million b/d
National Avg Retail Gasoline – Feb 9, 2026$2.902/gallon (down $0.226 yr/yr)
Coal Consumption – January 2026~46 million short tons (10% above EIA’s prior forecast)
Industrial Production Growth – January 2026+0.7 percent MoM — strongest since February 2025
Manufacturing Output Growth – January 2026+0.6 percent MoM — broad-based, all sub-sectors
Industrial Production YoY – January 2026+2.3 percent year-over-year
Capacity Utilization – January 202676.2 percent (3.2 ppts below long-run average)
ISM Manufacturing PMI – January 202652.6% — first expansion in 12 months; ended 26-month contraction
ISM New Orders Index – January 202657.1% — highest reading since February 2022
ISM Production Index – January 202655.9% — highest reading since February 2022
S&P Global Flash Manufacturing PMI – Feb 202651.2 (7th consecutive month of expansion)
Philadelphia Fed Manufacturing Index – Feb 202616.3 — highest since September 2025
Corn Production – 2025 (USDA NASS Final, Jan 2026)~16.8 billion bushels — all-time US record harvest
Corn Yield – 2025186.0 bushels per acre — all-time US record
Soybean Production – 20254.26 billion bushels
Soybean Yield – 202553.0 bushels per acre — all-time US record

Source: U.S. Bureau of Economic Analysis (BEA) bea.gov — GDP Advance Estimate Feb 20, 2026; U.S. Energy Information Administration (EIA) eia.gov — February 2026 STEO (Feb 10, 2026), Weekly Petroleum Status Reports (weeks ending Feb 6 & Feb 13, 2026), Weekly Natural Gas Storage Report (week ending Feb 13, 2026, released Feb 19, 2026), crude oil weekly production (week ending Feb 20, 2026, released Feb 25, 2026); Federal Reserve Board federalreserve.gov — G.17 Release Feb 18, 2026; ISM ismworld.org — Manufacturing PMI Report Feb 2, 2026; S&P Global Flash PMI Feb 20, 2026; Baker Hughes rig count; USDA NASS nass.usda.gov — Crop Production 2025 Summary, Jan 12, 2026.

These facts — drawn exclusively from US government and official agency data released in the final weeks of February 2026 — tell a story of remarkable production power combined with acute commodity volatility. At 13.702 million b/d in the week of February 20, 2026, the US remains the world’s largest crude oil producer by an enormous margin, operating less than 2 percent below its own all-time weekly production record. Meanwhile, the natural gas market experienced events that will mark 2026 as a historically significant year: a nominal all-time daily price record of $30.72/MMBtu, the largest weekly inventory withdrawal ever recorded at 360 Bcf, and a monthly average of $7.72/MMBtu in January that was roughly triple the Henry Hub levels of early 2024. These conditions are already reverberating through the drilling market, where higher price signals are expected to drive increased gas-directed rig activity in 2026’s second half.

On the manufacturing side, the January 2026 ISM PMI reading of 52.6 percent ended 26 straight months of manufacturing contraction — a drought that has now definitively broken. The New Orders index hitting 57.1 — a four-year high — is especially significant for domestic production in the US 2026, as new orders are the most forward-looking sub-component of the PMI suite and historically lead actual factory output growth by 1–3 months. At the same time, the S&P Global Flash PMI for February 2026 eased to 51.2, with factory output growth slowing and export orders contracting again, tempering enthusiasm and suggesting that some of January’s surge reflected tariff-driven front-loading rather than purely organic demand acceleration.

US GDP and Overall Domestic Output in the US 2026

Quarter / PeriodReal GDP Growth (Annual Rate)Key DriverNominal GDP Level
Full Year 2024+2.8 percentBroad-based growth
Q1 2025-0.6 percentImport surge, reduced investment
Q2 2025+3.8 percentConsumer spending, decreased imports
Q3 2025+4.4 percentConsumer spending, exports, govt spending
Q4 2025+1.4 percentConsumer spending & investment; offset by govt & exports$31,490 billion SAAR
Full Year 2025+2.2 percentConsumer spending primary driver
Govt Shutdown Drag on Q4 2025-1.0 percentage pointOct–Nov 2025 federal shutdown
PCE Price Index – Full Year 2025+2.6 percentAbove 2.4% in 2024
Core PCE (ex food & energy) – 2025+2.8 percentElevated services inflation
Next GDP ReleaseMarch 13, 2026Q4 2025 Second Estimate (BEA)

Source: U.S. Bureau of Economic Analysis (BEA), bea.gov — GDP Advance Estimate Q4 and Year 2025, released February 20, 2026; Q3 2025 Updated Estimate, released January 22, 2026; FRED (Federal Reserve Bank of St. Louis) — GDP nominal level updated February 20, 2026.

Real GDP for full-year 2025 came in at 2.2 percent, down from 2024’s 2.8 percent pace but a resilient result given a -0.6 percent Q1 2025 contraction driven by a surge in imports ahead of anticipated tariff actions. The economy’s subsequent turnaround was swift: Q2 2025 rebounded to 3.8 percent before Q3 2025 accelerated to 4.4 percent — one of the strongest quarterly performances since 2021, fueled by consumer spending, robust exports, and sustained private investment. The Q4 2025 deceleration to 1.4 percent was partly mechanical: the BEA calculated that the October–November 2025 federal government shutdown subtracted roughly 1.0 percentage point from Q4 real GDP growth due to the reduction in government services produced. Stripping that effect out, the underlying private-sector domestic production economy was running closer to 2.4 percent in Q4 — a healthy pace.

On the price side, the PCE price index rose 2.6 percent for full-year 2025 while core PCE came in at 2.8 percent — both above the Federal Reserve’s 2 percent target. This persistent inflation, particularly in services, has kept the Fed in a measured rate-cutting posture that constrains borrowing costs for capital-intensive domestic production industries including manufacturing, energy exploration, and agriculture. The Q4 2025 second GDP estimate, due March 13, 2026, will incorporate additional source data and will be the next significant revision point for analysts assessing whether the Q4 weakness was transitory — as the shutdown math suggests — or reflects a more durable softening in the growth trajectory heading through 2026.

Energy Domestic Production Statistics in the US 2026

Energy IndicatorLate 2024 / Early 2025Mid–Late 2025Jan–Feb 2026 (Latest)2026 Full-Year Forecast
Weekly Crude Oil Production~13.2–13.5 million b/d13.4–13.862 million b/d (record Nov 7)13.702 million b/d (wk of Feb 20, 2026)13.60 million b/d avg
2025 Annual Crude Production Avg13.60 million b/d (EIA confirmed)
EIA 2026 Crude Production Forecast13.60 million b/d (Feb STEO)
EIA 2027 Crude Production Forecast13.32 million b/d (declining)
Lower 48 ex-Gulf of America – 202611.15 million b/d
Federal Gulf of America – 20261.98 million b/d
Alaska – 20260.47 million b/d
Brent Crude Oil Price~$80/b avg~$65/b avg$67/b (Jan 2026 avg)$58/b (Feb 2026 STEO)
WTI Crude Spot Price~$76/b~$62–$68/b$63.77/b (Feb 6, 2026)~$55/b implied
Active Oil Rigs~420–450 rigs409 rigs (wk of Feb 20, 2026 — Baker Hughes)
Crude Oil Refinery Inputs~15.8 million b/d~15.9 million b/d16.1 million b/d (wk of Feb 13, 2026)
Refinery Operable Capacity Utilization~88%~87%91.0% (wk of Feb 13, 2026)
Gasoline Production~9.0 million b/d~9.0 million b/d9.4 million b/d (wk of Feb 13, 2026)
Retail Gasoline Price (National Avg)~$3.30/gal~$3.05/gal$2.902/gal (Feb 9, 2026)
Henry Hub Nat Gas – Monthly Avg~$2.20/MMBtu$3.50–$4.26/MMBtu$7.72/MMBtu (Jan 2026 — highest since Sept 2022)$4.30/MMBtu (2026 avg)
Henry Hub Intraday Record$30.72/MMBtu (Jan 23, 2026)
Largest Ever Weekly Gas Storage Withdrawal360 Bcf (wk ending Jan 30, 2026)
Natural Gas Storage Level2,070 Bcf (Feb 13, 2026; 123 Bcf below 5-yr avg)~1,900 Bcf end of withdrawal season
US Dry Nat Gas Production Growth 2026+2% (+~2 Bcf/d) above 2025
Henry Hub Price Feb 2026 Forecast$4.60/MMBtu (EIA Feb STEO)
Coal Consumption – January 2026~46 million short tonsCoal power gen falls -6% in 2026
Solar Generation Growth Forecast 2026+17% (EIA Feb STEO)
Wind Generation Growth Forecast 2026+6% (EIA Feb STEO)

Source: U.S. Energy Information Administration (EIA), eia.gov — February 2026 Short-Term Energy Outlook (released Feb 10, 2026, press583.php); EIA Weekly Petroleum Status Reports for weeks ending Feb 6 and Feb 13, 2026 (released Feb 12 & Feb 19, 2026); EIA Weekly Natural Gas Storage Report (week ending Feb 13, 2026, released Feb 19, 2026); EIA weekly crude oil production data (week ending Feb 20, 2026, released Feb 25, 2026); Baker Hughes North America Rig Count (Feb 21, 2026); Rigzone reporting on EIA February STEO.

US crude oil production for the week ending February 20, 2026 came in at 13.702 million barrels per day — just 1.1 percent below the all-time weekly record of 13.862 million b/d set during the week of November 7, 2025. The EIA’s February 2026 STEO confirmed that full-year 2025 averaged a record 13.60 million b/d and forecasts 2026 will maintain that same average pace, with the Lower 48 states excluding the Gulf of America accounting for 11.15 million b/d, the Federal Gulf of America contributing 1.98 million b/d, and Alaska adding 0.47 million b/d. Downstream, US refineries processed 16.1 million b/d during the week of February 13, 2026 at a robust 91.0 percent of operable capacity — among the highest utilization levels recorded in recent years — while gasoline production ran at 9.4 million b/d. Despite these strong throughput numbers, the national average retail gasoline price stood at just $2.902/gallon on February 9, 2026 — down $0.226 from a year ago — benefiting American consumers as crude oil prices trend lower from 2025 highs.

The natural gas story of early 2026 is extraordinary by any measure. Henry Hub natural gas prices averaged $7.72/MMBtu in January 2026 — the highest monthly average since September 2022 and nearly double December’s average of $4.26/MMBtu — driven by Winter Storm Fern blanketing much of the US in historic cold. On January 23, 2026, the Henry Hub spot price hit a nominal all-time intraday record of $30.72/MMBtu, while the week ending January 30 saw 360 Bcf withdrawn from underground storage — the largest single-week storage withdrawal in the history of EIA’s Weekly Natural Gas Storage Report. By February 13, 2026, working gas in storage had fallen to 2,070 Bcf — 59 Bcf below last year’s level and 123 Bcf below the five-year seasonal average. The EIA’s February STEO now forecasts the US will exit the withdrawal season with less than 1,900 Bcf in storage — 8 percent below their prior estimate — and has raised the 2026 annual Henry Hub price forecast to $4.30/MMBtu, with February alone projected at $4.60/MMBtu. Higher prices are expected to accelerate gas-directed drilling in the second half of 2026, when new Permian pipeline capacity comes online and production ramps back up from its weather-disrupted January lows.

Manufacturing Domestic Production Statistics in the US 2026

Manufacturing / Industrial IndicatorQ3 2025December 2025January 2026February 2026
Total Industrial Production Growth (MoM)+1.1% (Q3 ann. rate)+0.4% MoM+0.7% MoM— (next release Mar 16)
Industrial Production YoY+1.6% (Sept 2025)+2.3% YoY
Manufacturing Output Growth (MoM)+0.2% (Aug 2025)+0.2% MoM+0.6% MoM
Durable Goods Mfg Output (MoM)+0.8% (nearly all sub-sectors up)
Motor Vehicles & Parts OutputdecliningFirst MoM gain since Aug 2025
Nondurable Goods Mfg Output (MoM)+0.4%
Mining Output (MoM)0.0% (Sept)-0.9%-0.2%
Utilities Output (MoM)+1.1% (Sept)+2.6%+2.1%
Total Capacity Utilization75.9% (Sept)76.0%76.2%
Long-Run Avg Capacity Utilization (1972–2025)79.4% (76.2% is 3.2 ppts below)
2026 Total Industrial Capacity Growth (Q4-Q4)+1.1% forecast
2026 Manufacturing Capacity Growth+1.0% forecast
2026 Utility Capacity Growth+2.8% forecast
ISM Manufacturing PMI47.9 (contraction)52.6 (expansion — 1st in 12 months)Next release Mar 2, 2026
ISM New Orders Index47.457.1 (highest since Feb 2022)
ISM Production Index50.755.9 (highest since Feb 2022)
ISM Prices Index58.559.0
ISM Backlog of Orders45.851.6 (highest since Aug 2022)
S&P Global US Manufacturing PMI51.852.4 (revised)51.2 (Flash, Feb 20, 2026)
Philadelphia Fed Manufacturing Index16.3 (highest since Sept 2025)

Source: Federal Reserve Board, G.17 Industrial Production and Capacity Utilization, February 18, 2026 (federalreserve.gov); Institute for Supply Management (ISM), Manufacturing PMI Report On Business, February 2, 2026 (ismworld.org); S&P Global Flash US Manufacturing PMI, February 20, 2026; Philadelphia Federal Reserve Bank, Manufacturing Business Outlook Survey, February 2026.

Industrial production rose 0.7 percent in January 2026 — the strongest monthly advance since February 2025 — easily exceeding Wall Street’s consensus forecast of 0.3 to 0.4 percent. Manufacturing output led with a 0.6 percent gain across all major industry groups, the best month for factory output in nearly a year. Durable goods manufacturing surged 0.8 percent, with gains in machinery, computer and electronic products, nonmetallic mineral products, miscellaneous durables, and a particularly notable recovery in motor vehicles and parts — its first monthly increase since August 2025. Nondurable goods added 0.4 percent, led by paper, chemicals, and plastics. Mining output edged down 0.2 percent for a second consecutive month, reflecting the softening drilling environment as crude oil prices trend toward the EIA’s projected $58/barrel Brent average for 2026. Total capacity utilization reached 76.2 percent in January 2026 — still 3.2 percentage points below the long-run average of 79.4 percent (1972–2025), but trending upward for the third straight month. Separately, utilities output climbed another 2.1 percent in January following 2.6 percent in December, driven by extreme cold weather across the Eastern US — a direct consequence of Winter Storm Fern’s demand spike on the power grid.

The ISM Manufacturing PMI surging to 52.6 percent in January 2026 deserves special emphasis: this reading ended exactly 26 consecutive months of manufacturing contraction, a stretch that had weighed on industrial capex and employment decisions for more than two years. The New Orders sub-index at 57.1 percent — the highest since February 2022 — suggests the order book is filling rapidly, with ISM noting that “of the six largest manufacturing industries, four reported increased new orders” in January. The Backlog of Orders index recovered to 51.6 percent, the best reading since August 2022, indicating factories were already working through a growing queue. However, the S&P Global Flash PMI for February 2026 came in at 51.2, retreating from January’s revised 52.4, with factory output growth described as its softest since July 2025 and new orders edging down for the second time in three months. S&P Global noted that supplier delivery times lengthened to their most since October 2022 due to delays, shortages, and adverse weather — signs that supply chain tensions are re-emerging even as demand signals moderate.

Agricultural Domestic Production Statistics in the US 2026

Crop / Indicator20242025 Final (USDA NASS, Jan 2026)2025 Yield / AcresYoY Change
Corn (Grain) Production14.892 billion bushels~16.8 billion bushels186.0 bu/acre (record)+12 percent
Corn Planted Area90.7 million acres95.2 million acres+5%
Corn Harvested Area82.7 million acres~90.0 million acres+9%
Illinois Corn Yield – 2025221 bu/acre (state record)
Soybean Production4.374 billion bushels4.26 billion bushels53.0 bu/acre (record)-3 percent
Soybean Harvested Area86.2 million acres80.4 million acres-7%
All Cotton Production~14.3 million bales13.9 million 480-lb bales856 lbs/acre-3%
All Wheat – Planted Area~46 million acres45.5 million acres52.7 bu/acre-1%
Corn Season-Avg Farm Price 2025/26 Mktg Yr$4.24/bu (2024/25)$4.00/bu (projected)-$0.24
Soybean Season-Avg Farm Price 2025/26$10.70/bu$10.20/bu (projected)-$0.50
Wheat Season-Avg Farm Price 2025/26$5.52/bu$5.00/bu (projected)-$0.52

Source: USDA National Agricultural Statistics Service (NASS), Crop Production 2025 Summary, released January 12, 2026 (nass.usda.gov); USDA World Agricultural Supply and Demand Estimates (WASDE), January 2026 (usda.gov).

The 2025 US corn crop of approximately 16.8 billion bushels is the largest ever harvested in the nation’s history — a production milestone achieved through a combination of significantly expanded planted area (95.2 million acres, up 5 percent) and a record national yield of 186.0 bushels per acre. The yield record was driven by ideal weather across the Corn Belt during key pollination windows in July 2025, with some states achieving extraordinary results: Illinois recorded a state-level record of 221 bushels per acre. USDA NASS released these final figures on January 12, 2026, making this the definitive government confirmation of the 2025 harvest size. Despite the historic volume, corn’s projected season-average farm price for the 2025/26 marketing year stands at just $4.00/bushel — down $0.24 from the prior year — a direct consequence of supply abundance outpacing demand growth, even as ethanol blending and animal feed usage remain robust.

The soybean story is more nuanced: despite setting a new all-time national yield record of 53.0 bushels per acre, total soybean output fell 3 percent to 4.26 billion bushels because farmers shifted approximately 5.8 million acres away from soybeans and into corn in response to 2025’s more favorable corn price ratios. Cotton production fell 3 percent to 13.9 million 480-pound bales on lower per-acre yields. All three primary row crops face lower projected marketing-year prices — corn at $4.00/bu, soybeans at $10.20/bu, and wheat at $5.00/bu — squeezing farm income margins even as the nation’s aggregate production volumes remain at or near record levels. For farmers making 2026 planting decisions across the Midwest and Plains, these price signals — combined with uncertainty around agricultural export policy and the impact of broader tariff negotiations on soybean demand from China — represent the critical variables shaping what US domestic agricultural production will look like when the next harvest is counted.

State-Level Domestic Production in the US 2026

State / RegionQ3 2025 Real GDP GrowthQ2 2025 Growth (Context)Primary Production Driver
Kansas+6.5 percent (fastest in nation, Q3 2025)Agriculture, energy
Texas~+6.8 percent (Q2 2025)Oil & gas, manufacturing
New Mexico~+5.7 percent (Q2 2025)Permian Basin oil & gas
Wyoming~+5.3 percent (Q2 2025)Energy, mining
Nebraska~+5.2 percent (Q2 2025)Agriculture, food processing
North Dakota+0.4 percent (slowest in nation, Q3 2025)Oil (moderating), agriculture
All 50 States + DCAll positive in Q3 2025Broadest expansion since 2021
Energy Extraction – States Where It Was Top Driver8 states (Q3 2025)Oil, gas, mining
Energy Extraction – States Where It Expanded45 out of 50 states (Q3 2025)Widespread energy sector contribution
Leading National GDP Drivers (Q3 2025)Information; Finance & Insurance; Prof. & Technical ServicesServices-led national growth
Next State GDP ReleaseApril 9, 2026Q4 2025 + Full-Year 2025 State GDP (BEA)

Source: U.S. Bureau of Economic Analysis (BEA), Gross Domestic Product by State, 3rd Quarter 2025, released January 23, 2026 (bea.gov).

Real GDP expanded in all 50 states and the District of Columbia in Q3 2025 — a result that the BEA characterized as one of the broadest state-level expansions in recent years. Kansas led all states with a 6.5 percent annual growth rate, a product of record-breaking crop production — corn, wheat, and grain sorghum — combined with a resilient regional energy sector. At the other end of the spectrum, North Dakota’s 0.4 percent growth in Q3 2025 reflected the direct impact of a softening Williston Basin oil patch as crude prices pulled back from mid-year peaks and active rig counts in the Bakken formation dropped from earlier highs. The BEA data identified energy extraction as the number one growth driver in 8 states and as a contributor to expansion in 45 of 50 states — an extraordinary reach that underscores how central fossil fuel production remains to the domestic output of the US in 2026, even as renewable energy capacity expands at a rapid pace.

What the state-level production picture makes clear is the profound geographic differentiation in how the US production economy is organized. Texas alone accounts for roughly 43 percent of all US crude oil production, and its economy has consistently outperformed national GDP growth in recent years. New Mexico’s Permian Basin counties are among the fastest-growing sub-state economies in the country, while agricultural states in the Corn Belt benefit from the 2025 record harvest’s downstream effects on food processing, transportation, and rural services employment. The BEA will release Q4 2025 and preliminary full-year 2025 state GDP estimates on April 9, 2026 — a release that will provide the first complete annual accounting of how each state’s domestic production economy performed across the entirety of 2025, and serve as the baseline for evaluating 2026 US domestic production trends by region.

Labor Productivity in US Domestic Production 2026

Productivity IndicatorQ2 2025Q3 2025 (Revised, BLS Jan 29, 2026)Last 4 Quarters YoY
Nonfarm Business Sector Productivity Growth+2.7% (annual rate)+4.9% (annual rate)
Nonfarm Business Output Growth – Q3 2025+5.0% (annual rate)
Hours Worked Change – Q3 2025+0.1%
Unit Labor Cost Change+1.8%-1.9%+1.3% YoY
Hourly Compensation Change+4.6%+2.9%
Real Hourly Compensation Change+1.9%-0.2%+0.3% YoY
Manufacturing Real Output Index (2017=100)99.274
2026 Manufacturing Capacity Growth Forecast+1.0% (Q4 to Q4)
2026 Mining Capacity Growth Forecast+0.1%
2026 Utility Capacity Growth Forecast+2.8%

Source: U.S. Bureau of Labor Statistics (BLS), Productivity and Costs: Third Quarter 2025 Revised Estimates, released January 29, 2026 (bls.gov); Federal Reserve Board G.17 Release, February 18, 2026 (federalreserve.gov) — 2026 capacity growth estimates.

Labor productivity in the US nonfarm business sector grew at an exceptional 4.9 percent annual rate in Q3 2025 — among the strongest quarterly productivity readings since the COVID-era rebound of 2020–2021. The math is straightforward and striking: nonfarm business output expanded 5.0 percent in Q3 while hours worked grew only 0.1 percent, meaning American workers produced vastly more per hour with minimal additional labor input. The payoff for the broader domestic production economy was equally clear: unit labor costs fell 1.9 percent in Q3, simultaneously reducing inflationary pressure and improving corporate profitability margins. Over the last four quarters cumulatively, unit labor costs rose just 1.3 percent — a remarkably contained figure that has given the Federal Reserve some room to begin modest rate reductions without reigniting wage-price spiral concerns. This productivity-led growth model is exactly what policymakers hope to see accompanying a sustained expansion of US domestic output in 2026.

Real hourly compensation declined 0.2 percent in Q3 2025 on an inflation-adjusted basis, a reminder that even with strong nominal wage growth, elevated consumer prices continued to erode worker purchasing power on a quarter-to-quarter basis through much of 2025. On a year-over-year basis, real hourly compensation was 0.3 percent higher, reflecting a gradual improvement in living standards as inflation moderated from its 2022–2023 peaks. Looking ahead into 2026, the Federal Reserve’s preliminary capacity estimates project manufacturing capacity growing 1.0 percent and utility capacity expanding 2.8 percent — the latter driven by massive investment in grid infrastructure to support surging electricity demand from data centers and AI computing facilities, primarily in Texas and the mid-Atlantic region. The mining sector’s capacity is expected to grow only 0.1 percent in 2026, consistent with a moderating drilling environment as WTI crude prices trend toward the $50s per barrel and operators focus on capital discipline and shareholder returns over raw volume growth.

Disclaimer: The data reports published on The Global Files are sourced from publicly available materials considered reliable. While efforts are made to ensure accuracy, no guarantees are provided regarding completeness or reliability. The Global Files is not liable for any errors, omissions, or damages resulting from the use of these reports.