U.S. August Industrial Production - Trend marginally positive
August industrial production gains of 0.1% overall and 0.2% in manufacturing are modest, but they exceed expectations and the implications of weak aggregate manufacturing hours worked data in the August non-farm payroll.
The upside surprise was however largely offset by negative revisions. July capacity utilization was revised marginally lower to 77.4% from 77.5%, a level which persisted in August.
A 2.0% decline in weather-sensitive utilities outweighed a 0.9% rise in mining which corrected a 1.5% decline in July.
Manufacturing trend looks marginally positive with a 0.2% August rise more than reversing a 0.1% July decline that was the first decline since April. Ex autos however manufacturing rise only 0.1% after a 0.1% July decline, though with June up by 0.5% trend is also marginally positive.
