US Industrial Production: Consumer goods recovery well underway – Wells Fargo
Data released on Friday showed that Industrial Production rose 3% in July, in line with market expectations. The manufacturing sector has seen a relatively strong recovery this cycle, underpinned by consumers shifting spending toward goods, explained Wells Fargo’s economists. They see that business goods have been slower to recover.
Key Quotes:
“The manufacturing sector’s recovery continued in July, but at a slower place. Output at factories rose 3.4% after June’s 7.4% gain. Once again, autos led the charge as the sector has seen a relatively quick recovery as consumers shun mass transit.”
“The need to social distance has shifted household spending away from services to goods. Production of consumer products rose 4.6% in July, and is only 2.4% below February levels.”
“Production for business equipment increased 5.0% in July. Gains broadened beyond information processing. Yet, output for business goods has proved slower to recover with uncertainty about the pandemic and election likely holding back outlays.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
