Manufacturing Production on a Positive Streak

By SBE Council at 16 May, 2026, 9:02 am

by Raymond J. Keating –

Industrial production, as noted in the latest report from the Federal Reserve, expanded by 0.7 percent in April.

While total industrial production – that is, the physical output of the manufacturing, mining and utility sectors – has been uneven during the first four months of 2026, with two positive months, one month of contraction and one flat month, manufacturing production is now on a four-month growth streak.

Manufacturing production increased by 0.6 percent in April, which followed on gains of 0.1 percent in March, 0.4 percent in February, and 0.5 percent in January.

After a rough four-month close in 2025, and assorted challenges including inflation, and tariff costs and uncertainty, this mini-positive streak certainly is welcome.

As for a further breakdown, the Fed noted:

“The production of durables increased 1.2 percent in April, with gains in most categories. The largest increase was in the output of motor vehicles and parts, which jumped 3.7 percent. Nondurable manufacturing production edged down 0.1 percent, as declines in several categories – notably the indexes for chemicals and for plastics and rubber products, which both decreased 0.9 percent – were mostly offset by increases in the indexes for food, beverage, and tobacco products, for printing and support, and for petroleum and coal products.”

Finally, it must be kept in mind that most manufacturing firms in the U.S. are smaller enterprises, with 74.3 percent of employer firms in manufacturing having fewer than 20 employees and 93.1 percent fewer that 100 employees (based on the latest Census Bureau data 2022).

By the way, while there are 239,265 employer manufacturing businesses in the U.S., there also are another 406,605 nonemployer manufacturing businesses (2023 latest data). Indeed, the number of one-person manufacturers in the U.S. is notable.

Positive developments for U.S. manufacturing means positives for American small businesses. Let’s hope that entrepreneurship and small business in manufacturing can be resilient and gain some real traction.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of “The Weekly Economist” book series, and 10 Points from Walt Disney on Entrepreneurship.