US factory production grew by 0.6% in January, its largest increase in nearly a year, the Federal Reserve reported on Wednesday. This gain surpassed economists' expectations of 0.4% growth and followed a flat output in December. On a yearly basis, factory output rose 2.4% in January. President Donald Trump’s import tariffs have pressured manufacturers by raising costs, but this uptick signals possible recovery. Manufacturing, which makes up 10.1% of the US economy, lost over 80,000 jobs last year. Some sectors, like technology, have performed well thanks to an artificial spending surge. Economists expect artificial intelligence and tax cuts to help the wider manufacturing sector grow. Last month’s output rises were widespread. Consumer durable goods production increased by 0.8%, with notable gains in nonmetallic minerals, machinery, electronics, and motor vehicles, the latter rising for the first time since last August. Nondurable goods output went up 0.4%, helped by higher production of paper, chemicals, and plastics. Mining dropped 0.2%, while utility production grew 2.1% due to cold weather effects. Overall industrial production climbed 0.7% following a 0.2% gain in December and was up 2.3% year-over-year. The capacity utilization rate for industry in January rose to 76.2%, still below the long-term average. Manufacturing’s operating rate also inched up to 75.6%. These improvements come as trade uncertainties ease and businesses begin investing more, encouraged by tax benefits and increased demand. The rebound could mark the start of a renewed strength in US manufacturing.