U.S. July Industrial Production - A flat picture, but Empire State survey stronger in August
July industrial production has seen a 0.1% decline overall with manufacturing unchanged, both following two straight gains. Mining fell by 0.4%, a second straight drop, while weather-sensitive utilities saw a marginal 0.2% decline after a rise of 1.8% in June.
Autos often see significant swings in July as annual retooling shutdowns are scheduled, though this July autos saw a modest 0.3% seasonally adjusted decline and manufacturing output was also unchanged ex autos.
The subdued picture is consistent with ISM manufacturing data for July, though a few regional surveys did show improvement. August’s Empire State manufacturing survey released earlier today gave a positive signal with a rise to 11.9 from 5.5, reaching its highest level since November.
Empire State new orders supported the message of the headline but employment, prices and six month expectations showed little change from July. Two straight positives after four straight negatives suggest alarm over tariffs is fading.
