Industrial Production Hums Along
|Industrial production (IP) rose 0.3% in September as mining and durable goods manufacturing advanced. Solid production of business equipment bodes well for Q3 GDP, but IP is likely to moderate in the coming months.
Mining Matters
-
Industrial production remained solid in September, advancing 0.3%. The impact from Hurricane Florence was fairly minor— less than 0.1 percentage point–the Fed estimates.
-
Higher oil prices have continued to support mining activity, which was up 0.5% in September and 13.4% over the past year.
-
Manufacturing rose 0.2% amid gains in motor vehicles and machinery, bringing the year-ago rate to a six-year high.
Moderation in Store
-
After a 0.8% gain last month, production of business equipment rose at an 8.0% clip in the third quarter. That points to another decent print for equipment spending for Q3 GDP.
-
Nevertheless, total industrial production slowed over the quarter. We expect to see further moderation in the coming months amid slower global growth, a strong dollar, ongoing trade tensions and rising rates.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.