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In December, consumer prices increased 0.3% from November and 2.7% over the year, unchanged from the 2.7% annual rise in November. Core CPI, which excludes more volatile energy and food prices, rose 0.2% from November and 2.6% over the year, also unchanged from the 2.6% 12-month increase in November.

Energy costs advanced 2.3% over the year in December, after rising 4.2% year-over-year in November. Within the energy index, gasoline prices declined 3.4% over the year, while fuel oil prices jumped 7.4%. Meanwhile, electricity prices increased 6.7% year-over-year, and natural gas prices surged 10.8%.

In December, food prices grew 3.1% over the year, after increasing 2.6% year-over-year in November, while prices for food at home advanced 2.4%. Meanwhile, prices for food away from home climbed 4.1% from December 2024, up from the 3.7% year-over-year increase in November. Of the different food groups, beef and veal and coffee continue to rise at the fastest pace, soaring 16.4% and 19.8% over the year, respectively.

The shelter index grew 0.4% from November and 3.2% over the year, the greatest factor in the all-items monthly increase and ticking up from the 3.0% annual gain in November. Meanwhile, prices for used cars and trucks decreased 1.1% over the month but rose 1.6% over the year, while new vehicle prices stayed the same over the month and ticked up 0.3% from December 2024. Relatedly, prices for motor vehicle maintenance and repair jumped 5.4% year-over-year.

Although the headline inflation rate did not accelerate from November, it is still elevated from earlier last year. Federal Reserve officials cut their interest rate target at their prior three meetings, but markets ��that the Federal Open Market Committee will not lower its interest rate target at this month’s meeting. While risks to the Federal Reserve’s employment mandate remain elevated, so do risks to inflation, and those two risks may be coming into balance again.

Industrial production rose 0.4% in December, while manufacturing output increased 0.2% after moving up 0.4% in November. At 97.4% of its 2017 average, manufacturing production advanced 2.0% from December 2024. Capacity utilization for manufacturing was 75.6%, unchanged from November but up 1.1% over the past year. Capacity utilization remains 2.6 percentage points below its long-term average from 1972 to 2024.

In December, most major market groups posted gains. Consumer goods production grew 0.7%, while business equipment output increased 0.8%. The decline in production of consumer durables (down 0.7%) was led by home electronics’ output falling 1.4%, while the index for consumer nondurables rose 1.1%, experiencing gains in all but two of its categories. Among business equipment, the 1.7% gain in defense and space equipment more than offset a 0.2% loss in the index for information processing equipment. At the same time, the index for materials ticked up 0.2%, while the index for construction supplies inched down 0.3%, and the index for business supplies remained unchanged in December.

Durable goods manufacturing advanced 0.1% in December and 3.1% from the year prior. Monthly growth was greatest for primary metals (up 2.4%), while wood products posted the largest decline (down 2.3%). Meanwhile, led by a 1.8% gain in petroleum and coal products output, nondurable goods manufacturing increased 0.3% in December and 1.0% from December 2024.

Artificial intelligence, the manufacturing labor shortage, training programs and more—all were covered in a recent episode of the “Workforce��4.0” podcast, featuring Manufacturing Institute President and Executive Director Carolyn Lee.

What’s��going on:��Among the first topics addressed by Lee last week when she chatted with podcast host Ann Wyatt for the episode “” was the still-persistent concern that AI will “take” jobs from human workers.

• “[W]hen��you ask the average manufacturer, especially a large manufacturer, they would say they’ve been working with robotics and automation for many years now,” Lee told Wyatt. “This is not new. …��Large language models and generative AI [are] new … but … manufacturers have [always] been at the forefront of technology evolution and innovation, and it has not��eliminated��all people. I see people wherever I go.”
• In fact, the more widespread automation and other AI applications have become, the more appealing some of the work has become. Lee told the story of a manufacturing worker nearing retirement age who told her, “I’ve��been in this sector for 40 years.��I’m��65. I want to stay longer because the job is safer.��It’s��interesting,��I’m��learning more in the last five years than��I’ve��learned my entire��previous��career, and��I’m��excited for��what’s��to come.”
• Manufacturers just need to train their workforces on the��technology��so their teams “are able to evolve” with it.

Humans in demand:��Human workers��are still very much in demand. In fact, the manufacturing industry still has a dearth of about 400,000 workers—a shortfall that, if current trends continue, will grow to 1.9 million by 2033, Lee said, citing��data from a��joint��MI–Deloitte��2024�� .

• “When we do this updated paper, which will be in ’27, I think it will show a much bigger number because our retirements will��have continued��… [and] all��this domestic investment is��going to create new jobs,” she went on. That, coupled with the advancement of AI, will make workforce training—the kind the MI does—and worker upskilling even more important.

�󴡲ѷ�-�dzܲ������������ܳ�������:��Lee and Wyatt��discussed��the Federation for Advanced Manufacturing Education (FAME), a��national apprenticeship-style training program��started��in 2010 by��Toyota��and now run entirely by the MI.

• FAME now has “over 42 chapters in 17 states, training thousands of students in maintenance for an��[Advanced Manufacturing Technician]��degree,” according to Lee.
• “It is really an employer-led model where the employers are driving that commitment, driving the training, working in concert with community colleges and then local business entities to help support that network,” she said. “And then you’re growing the pool of talent and you’re building practices to solve this together so that we’re not fighting over a shrinking pool; we’re actually growing that pool.”

Nonfarm payroll employment ticked up by 50,000 in December. Meanwhile, October and November’s job gains were revised downward by 76,000 to a loss of 173,000 jobs and a gain of 56,000 jobs, respectively. Following the government shutdown, employment is still down by 67,000 from September. The 12-month average stands at 49,000 job gains per month. On the other hand, the unemployment rate edged down 0.1 percentage point from November to 4.4% in December, while the labor force participation rate also ticked down 0.1 percentage point to 62.4%.

Manufacturing employment decreased by 8,000 in December, the eighth consecutive month of job losses, after slipping by 2,000 in November. On the other hand, the collective job losses in September and October of 14,000 were revised upward by 3,000 jobs to a decrease of 11,000 jobs. Manufacturing employment is down 68,000 over the year. Durable goods manufacturing employment edged down by 3,000 in December, while nondurable goods employment fell by 5,000. The most significant gain in manufacturing in December occurred in miscellaneous manufacturing, which added 1,800 jobs over the month. Meanwhile, the most significant loss occurred in plastics and rubber products manufacturing, which shed 4,900 jobs over the month.

The employment-population ratio inched up 0.1 percentage point from November to 59.7% in December but is down 0.2 percentage points from a year ago. Employed persons who are part-time workers for economic reasons declined by 146,000 from November to 5.34 million in December and are up from 4.36 million in December 2024.��Native-born employment is down 656,000 from November but up 2,043,000 over the year. Meanwhile, foreign-born employment is up 310,000 over the month and 383,000 over the year. At the same time, the native-born unemployment rate is up 0.4 percentage points over the year to 4.1% in December, while the foreign-born unemployment rate is down 0.2 percentage points to 4.1%.

Average hourly earnings for all private nonfarm payroll employees rose 0.3%, or 12 cents, reaching $37.02. Over the past year, earnings have grown 3.8%. The average workweek for all employees edged down 0.1 hour to 34.2 hours and by 0.2 hours to 39.9 hours for manufacturing employees.

The U.S. Consumer Product Safety Commission has issued multiple warnings urging consumers to��immediately��stop using certain imported mattresses that fail mandatory federal flammability standards. The alerts follow a pattern of recent recalls targeting noncompliant products that pose a risk of��serious injury��or death from fire.

What’s��going on:��The CPSC recently����consumers to stop using Crayan mattresses after finding they violated the federal flammability rule, citing a serious fire hazard. The Chinese firm has been uncooperative in the implementation of a June 2025 recall.

• The warning builds on��similar�� last fall involving Elitespace mattresses, after the noncompliant seller, Foshanshiyiliangjiajukejiyouxiangongsi, of China, doing business as Elitespace Home, failed to recall their product or offer a remedy to consumers.

Dangerous competition: Noncompliant imports undercut responsible manufacturers by avoiding safety requirements, endangering American consumers. Allowing these unsafe products to stay on the market creates dangerous competition, rewarding copycats who cut corners while exposing families to preventable fire risks.

• These recalls demonstrate how appropriate enforcement can help level the playing field and keep consumers safe.

The 51�Թ��� says:��“Manufacturers��are committed to keeping American families safe,” said 51�Թ��� Vice President of Domestic Policy Jake Kuhns. “CPSC��oversight��of noncompliant products��is vital to��protecting families and the manufacturers that play by the rules.”

Washington, D.C. –��Manufacturers continue to report a mixed bag of economic challenges, according to the��51�Թ��� Q4 2025 Manufacturers’ Outlook Survey. As manufacturers began feeling the positive impacts of the tax bill and the president’s regulatory agenda on their business, optimism ticked up, but trade uncertainties loom, and health care costs continue to rise as a top concern for manufacturers.

“In line with the improvement in the outlook, companies expect most indices to improve marginally over the next 12 months,” said 51�Թ��� Chief Economist Victoria Bloom. “For example, manufacturers predict sales will increase 2.8%, up from 2.6% in Q3, and capital investments will grow 1.4%, up from 1.0% in the prior quarter. That said, while sentiment has improved, we are still below the historical average of 74%.”

Optimism rose 4.9 percentage points, with 69.9% of respondents reporting a positive outlook for their companies, up from 65.0% in Q3. Yet, in line with last quarter, trade uncertainties remained the top business challenge at 73.1%, with 80.3% of respondents reporting they have paid tariffs on imported manufacturing inputs since the start of the year. Additionally, rising health care and insurance costs rose to manufacturers’ second-highest business concern at 70.2%, with more than 94% of manufacturers expecting higher health insurance premiums in 2026, projecting an average jump of 11%. A weaker domestic economy and sales to U.S. customers ranked as the third-highest concern at 60.1%.

Other Key Survey Findings:

• A majority of manufacturers��(80.3%)��report paying tariffs on imported manufacturing inputs since the start of 2025, led by��58.6%��of respondents paying Section 232 tariffs,��52.1%��paying reciprocal tariffs on other countries under the International Emergency Economic Powers Act and��50.0%��paying Section 301 tariffs on China.
• Tariffs are impacting manufacturers of all sizes, with��72.8%��of small and medium-sized manufacturers with fewer than 500 employees paying tariffs on inputs this year—alongside��97%��of large manufacturers.
• When it comes to hiring needs,��72.1%��of respondents cite skilled production workers (technicians, welders and machinists),��60.1%��point to core production workers (operators, assemblers and packaging) and��33.5%��say they need high-skilled, degreed workers (scientists, researchers and engineers).
• Climate disclosure regulations are costing manufacturers, with more than one-third��(38.2%)��of manufacturers subject to new international or state laws and regulations requiring disclosure of emissions and climate risks. Of those respondents,��91.6%��face increased reporting costs and are diverting funds from productive uses to pay these added costs.
• 82.3%��of respondents indicated it is important to their companies for Congress to pass legislation maintaining robust, multiyear infrastructure investment to support manufacturing.

The 51�Թ��� releases these results to the public each quarter. Further information on the survey is available��here.

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit��.

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

The bipartisan Incentivizing New Ventures and Economic Strength Through Capital Formation Act will build upon past legislative successes to “ensure that America’s public capital markets support business growth and job creation at small manufacturers across the country,” the 51�Թ��� U.S. House leadership recently.

What’s going on: The House of Representatives on Thursday voted 302–123 to approve the INVEST package, following advocacy by the 51�Թ��� and others.

• The more than 20 bills in the package previously advanced out of the House Committee on Financial Services, where they received strong support during markups from Republican and Democratic members alike.

What’s in it: The 51�Թ��� strongly supports the following measures in the INVEST Act:

• Section 105 (Advocating for Small Business), to establish Offices of Small Business in the Securities and Exchange Commission’s Corporation Finance, Investment Management and Trading and Markets divisions
• Section 106 (Small Entities), to direct the SEC to conduct a study and rulemaking on the definition of ‘‘small entity’’ under the securities laws and direct the agency to consider small business impacts in future rulemakings
• Sections 201 and 203 (Expand Eligibility for Accredited Investor Status), to expand ways individual investors may qualify as “Accredited Investors” through a new exam, professional or educational credentials or inflation-adjusted net worth or income tests
• Sections 301 and 303 (Encouraging IPOs), to reduce registration requirements by allowing emerging growth companies to submit two years of audited financial statements instead of three and to direct the SEC to expand access to its testing-the-waters provisions to promote IPOs
• Section 305 (Middle Market IPO Cost), to direct the comptroller general to prepare a report on costs encountered by small and medium-sized companies during public offerings
• Section 306 (Expanding Well-Known Seasoned Issuer Eligibility), to enable smaller companies to qualify for WKSI status by decreasing the minimum market value threshold from $700 million to $400 million

The last word: “Manufacturers thank House Financial Services Committee Chairman Rep. French Hill (R-AR), Rep. Ann Wagner (R-MO), Rep. Gregory Meeks (D-NY) and Rep. Josh Gottheimer (D-NJ) for their leadership on the INVEST Act. This bipartisan legislation will reduce regulatory burdens and enhance capital formation for the small and medium-sized manufacturers that fuel our economy,” the 51�Թ��� following the vote.

Global technology company Siemens is expanding its electrician and manufacturing-expert workforces significantly ().

What’s��going on:��“In response to the nation’s urgent need for a skilled and adaptable workforce, Siemens today announced an expansion of its workforce development partnerships to help train 200,000 electricians and manufacturing experts by 2030.”

How��they’ll��do it:��The firm will partner with��community colleges, trade groups, technical��programs��and industry leaders to create training pathways, including certifications and technical programs.

• The move is a key piece of Siemens’ larger plan to contribute to “U.S. reindustrialization.”

Why��it’s��happening:��Demand for skilled trades is exploding, according to Siemens, propelled��largely by��the rapidly expanding interest in and use of digital tools��and artificial intelligence.

• “[E]lectrician��jobs are expected to grow 9% from 2024 to 2034, well above the national average. According to the U.S. Bureau of Labor Statistics, an estimated 81,000 openings are expected each year,��largely due to��retirements and career transitions.”
• The article cites a 2024����by Deloitte and the Manufacturing Institute, the 51�Թ���’s 501(c)3 workforce development and education affiliate, which found the manufacturing sector will need up to 3.8 million workers by 2033—and half of those jobs��could go unfilled if current labor trends continue.

Now’s the time:�� “As the effort to reindustrialize our economy accelerates and a new industrial tech sector emerges, now is the time to build workforce development ecosystems with the scale and impact needed to prepare a new generation of AI-ready leaders in the skilled trades,” Siemens USA Interim President and CEO Ann Fairchild said in a��.

From the MI: “Manufacturers’ success will always rely on a skilled and capable workforce. Siemens’ commitment is a powerful example of the leadership and forward-thinking investment our sector needs,” said MI President and Executive Director Carolyn Lee. “Programs like this help build and sustain the workforce our economy depends on.”

Sustainable construction leader Saint-Gobain North America thinks it may have a solution to the��nation’s��dearth of manufacturing talent: “a long-term program that brings modern manufacturing into the classroom and the classroom to the site floor”��().

What’s��going on:��In a recent op-ed, Saint-Gobain North America CEO Mark Rayfield discusses manufacturing’s status as a major economic engine—but says that to��maintain��that distinction, the sector “will need to fill 3.8 million manufacturing jobs over the next decade” (citing��a joint����from Deloitte and the Manufacturing Institute, the 51�Թ���’s 501(c)3��workforce��development��and education affiliate).

• If current trends continue, 1.9 million roles could go unfilled, Rayfield continued, again citing the MI/Deloitte study.

Why��it’s��happening:��“For years, students have been steered toward four-year degrees, while trade careers, especially in manufacturing, have been overlooked or stigmatized,” Rayfield writes.

• In fact, just 12% of American students have��actually visited��a manufacturing facility,��.

The fix:��To fill those roles, Saint-Gobain North America recently launched the workforce development program “ ,” which “gives students a chance to explore immersive manufacturing environments with a focus on plant jobs that do not require an advanced degree,” according to the company.

• The company is already seeing some success from the program, Rayfield writes in Newsweek.
• “Across the country, we have already partnered with schools in North Carolina and Minnesota, and we will partner with over 10 additional high schools in Louisiana, Massachusetts, Texas, Pennsylvania, Missouri and Arkansas” this school year.

Why��it’s��working:��“Let them get into our factories and see our employees and see that it’s not your 1950s manufacturing job, where you’re hammering the same nut as it goes by,” Rayfield told�� .

• Manufacturing jobs “are��[artificial intelligence]-enabled, they’re tech-enabled, they’re Industry 4.0, they’re mechanical engineering jobs, and they’re extremely rewarding,” he added.

From the MI:��“Programs like Saint-Gobain’s show what’s possible when manufacturers open their doors and help students see modern manufacturing up close,” said MI President and Executive Director Carolyn Lee. “These experiences don’t just change��perceptions;��they create pathways to meaningful careers and strengthen the workforce our industry needs to compete.”

San Francisco on Tuesday filed a lawsuit against some of the nation’s biggest food and beverage manufacturers, accusing them of creating a public nuisance through deceptive marketing of ultra-processed foods (, subscription).

What’s going on:��“City Attorney David Chiu filed the lawsuit in San Francisco Superior Court, alleging the companies employed tactics similar to those used by the tobacco industry to design and market products intended to addict consumers.”

• Chiu named Coca-Cola, PepsiCo, Kraft Heinz, Mondelez and six other firms in the suit, averring all broke “California laws on public nuisance and deceptive marketing.”
• The suit says that cancer, obesity and diabetes rates have risen in tandem with the proliferation of “ultra-processed” snack foods.
• The city is asking for “restitution and civil penalties to offset” health-care costs, as well as a court order stopping the companies from using “deceptive marketing” and mandating that they change their advertising practices.

However:��“The definition of ultra-processed foods remains under debate,” according to the article, and efforts underway by the Department of Agriculture and the Food and Drug Administration to define the term could backfire, as the 51�Թ�������in October.

• The push could shift nutrition programs and policies away from food composition and toward subjective opinions about processing methods.

The 51�Թ��� says:��“Allegations of public nuisance against food and beverage manufacturers that fully comply with FDA safety and nutrition standards are an abuse of the legal system,” said 51�Թ��� Chief Legal Officer and Corporate Secretary Linda Kelly.

• “Frivolous and agenda-driven lawsuits do not improve public health or safety. Instead, they create confusion for consumers and undermine the regulatory certainty manufacturers need to provide safe and nutritious foods that are affordable and accessible for American families.”

51�Թ��� in the news:����covered the 51�Թ���’s comments.