Post-storm rebound leaves industrial production uninspiring in August

Wells Fargo Research Team Wells Fargo

Summary

Mining and manufacturing activity bounced back in August after hurricane-related disruption stymied output in July. In short: a return to normal, which in today's manufacturing climate is not great.

Hurricane party

Output returned to normal after the Hurricane Beryl-related disruption in July, if only normal were something more encouraging. The 0.8% increase in industrial production in August represents a partial reversal of the 0.9% decline in July (chart). If pressed for a positive take, we could highlight how manufacturing output rose 0.9% which more than offset the 0.7% dip in July. Factory output was boosted by a 9.8% surge in motor vehicle & parts production. At the risk of sounding repetitive, this too was a bounce-back after auto-production fell 8.9% in July.

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Wells Fargo Research Team

Wells Fargo

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