US Industrial production rose 0.4% in August showed a report released on Tuesday. A rebound in utilities production offset a drop in mining activity and helped boost the headline figure, explained analysts at Wells Fargo.
“Industrial production increased just 0.4% in August which was a notch below the half a percent increase that had been expected. This gain, however, was enough to lift total industrial production back above its pre-pandemic, February 2020 level. Last month's initially reported gain of 0.9% was pared to an increase of 0.8%. Supply chain problems are not improving even though demand in the factory sector remains quite strong.”
“The headline print would have been an even bigger miss had it not been for a 3.3% bounce back in utilities output after that category fell sharply in July. Mining output was the soft spot, falling 0.6% on the month. But manufacturing output was also pretty soft in August with a gain there of only 0.2%, just half the 0.4% that had been expected. That said, the Federal Reserve estimated that Hurricane Ida subtracted 0.2 percentage points from overall manufacturing output during the month.”
“The trends in production reflect what we've seen in spending where durable goods outlays have generally outpaced spending on shorter-lived goods primarily consumed in the service sector. Amid the pivot to services, we see scope for nondurables production to eventually outpace durables production. Still, that trend reversal may have to wait until after businesses have rebuilt depleted stockpiles. Capacity utilization for manufacturing increased 0.1 percentage point in August to 76.7%. Capacity utilization rates for all three sectors remained below their long-run averages.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.