U.S. September Industrial Production - Trend marginally positive
September industrial production was in line with expectations with a marginal rise of 0.1%, with manufacturing unchanged. Mining was also unchanged with the rise in industrial production coming from a 1.1% upward correction from a 3.0% August decline in weather-sensitive utilities.
The flat monthly figure for manufacturing follows three straight moderate gains though Q3’s 1.3% annualized increase in manufacturing output was the slowest of three straight gains, as was a 1.1% annualized increase in overall industrial production.
Manufacturing was up 0.2% excluding a dip in the volatile autos sector but down by 0.1% excluding high technology. Excluding autos and high technology, manufacturing increased by 0.1% after a 0.1% August decline. Tariffs do not seem to have a major impact on trend in either direction.
Capacity utilization as unchanged at 75.9% and has little direction to trend, with August revised from 75.8% relative to recent annual revisions, which saw August revised quite significantly lower from 77.4% as seen in the original August release.
