- Prior month 0.2%
US August industrial production and capacity utilization data:
- Industrial production MoM: 0.0% vs +0.3% expected. Prior +0.2%
- Manufacturing output MoM: -0.3% vs +0.3% expected. Prior +0.2%
- Capacity utilization: 76.3% vs 76.4% expected. Prior 76.3%
US industrial activity was weaker than expected in August. Overall production was unchanged, missing expectations for a 0.3% increase, while manufacturing output fell 0.3% against expectations for a 0.3% gain.
The manufacturing figure is the softest part of the report. The 0.6-percentage-point miss suggests factory activity lost momentum during the month. Capacity utilization held at 76.3%, just below the estimate and unchanged from July.
Quick analysis: The softer production figures point to some cooling in the industrial side of the US economy. That could normally put modest downward pressure on Treasury yields and the US dollar, although the Federal Reserve will remain more focused on inflation and employment when determining its next policy move. One weak industrial report will not change the Fed outlook on its own, but it adds a softer growth signal following this week’s rate increase.
What this report measures: Industrial production measures the monthly change in output from US manufacturing, mining and utility companies. Capacity utilization shows how much of the economy’s available industrial capacity is currently being used. Traders monitor the report for signs of strengthening or weakening economic activity and potential inflation pressure from factories operating near their limits.
This article was written by Greg Michalowski at investinglive.com.
