Signs of trouble in the manufacturing sector's recovery

Wells Fargo Research Team Wells Fargo

The manufacturing sector is another area of the economy losing momentum recently, with production down 0.3% in September. Areas that have driven the factory sector's recovery gave back ground last month.

First Drop in Manufacturing Production Since April

Industrial production unexpectedly fell in September, contracting 0.6%. Utilities were a major drag (-5.6%) after a particularly hot August, while mining output (up 1.7%) only partially reversed last month's storm-related drop.

More telling about the state of the economy was the 0.3% drop in manufacturing production, which leaves output 6.1% off its February level.

Areas of Strength Turn to Drags

A number of areas that have been key to the manufacturing sector's rebound thus far saw output decline in September. This suggests that pent-up demand from spring shutdowns or the initial surge in interest for goods to spruce up or work from home is fading. Auto products declined for a second straight month, while computers & electronics and appliances, furniture & carpeting production also declined.

Download The Full Economic Indicators

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD: Bears flirt with 61.8% Fibo. support near 1.1775 area

The EUR/USD pair extends the previous day's late pullback from the 1.1835 region and attracts some follow-through selling during the Asian session on Tuesday. Spot prices currently trade around the 1.1775-1.1770 area, down nearly 0.15% for the day amid a modest US Dollar strength.

GBP/USD holds losses below 1.3500 due to BoE rate cut bets

GBP/USD edges lower after two days of gains, trading around 1.3480 during the Asian hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US ADP Employment Change four-week average later in the day, along with speeches from Federal Reserve officials.

Gold bears seem hesitant as geopolitical risks and Fed rate cut bets counter USD uptick

Gold sticks to modest intraday losses below the monthly peak touched earlier this Tuesday, though it lacks follow-through selling and holds above the $5,150 level heading into the European session. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers in the wake of the US Federal Reserve's hawkish outlook.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.