Preview: Due November 17 - U.S. October Industrial Production - Dip on utilities, manufacturing still healthy
We expect a 0.1% decline in October US industrial production due to a significant correction lower in weather-sensitive utilities. We expect a respectable 0.4% increase in manufacturing.
Utilities saw a particularly strong gain of 3.5% in September after gains in excess of 1.0% in both July and August, during a hot summer. Weekly electrical output data suggests a significant correction lower in October.
We expect mining to be unchanged after six straight gains with payroll data showing a dip in aggregate hours worked in the sector. Aggregate hours worked for manufacturing were little changed but we expect a 0.4% rise in manufacturing, 0.1% of that coming from a correction higher in autos after a dip in September. We expect the high tech sector to add 0.1% for a sixth straight month.
We expect capacity utilization to rise to 76.7% from 76.9% overall but this would remain above the 76.4% seen in July and August. We expect manufacturing capacity utilization to rise to 76.1% from 75.9% and this would be the highest since May 2024.
