Updated: 16-Nov-23 09:39 ET
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Updated: 16-Nov-23 09:39 ET |
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Highlights
- Total industrial production declined 0.6% month-over-month in October (Briefing.com consensus -0.4%) following a downwardly revised 0.1% increase (from 0.3%) in September.
- The capacity utilization rate fell to 78.9% (Briefing.com consensus 79.4%) from a downwardly revised 79.5% (from 79.7%) in September.
- Total industrial production was down 0.7% yr/yr. The capacity utilization rate of 78.9% was 0.8 percentage point below its long-run average.
Key Factors
- Manufacturing output declined 0.7% on the back of a 10.0% drop in the output of motor vehicles and parts. Excluding motor vehicles and parts, the index for manufacturing was up 0.1%. Manufacturing capacity utilization dropped to 77.2% from 77.8%.
- Mining production rose 0.4% month-over-month after being flat in September. Mining capacity utilization jumped to 94.3% from 93.8% in September.
- The output of utilities declined 1.6% following a 0.6% drop in September. Utilities capacity utilization fell to 71.4% from 72.7% in September.
Big Picture
- The key takeaway from the report is that it was adversely affected by the UAW strike, which has since ended. Motor vehicle and parts production, therefore, should turn into a tailwind for November industrial production, which is a thought that takes some of the sting out of the disappointing headline number for October.
Category |
OCT |
SEP |
AUG |
JUL |
JUN |
Industrial Production |
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|
|
|
|
Total Index |
-0.6% |
0.1% |
0.0% |
0.9% |
-0.6% |
Manufacturing |
-0.7% |
0.2% |
0.0% |
0.4% |
-0.7% |
Utilities |
-1.6% |
-0.6% |
0.7% |
4.8% |
-1.6% |
Mining |
0.4% |
0.0% |
-0.6% |
1.0% |
0.6% |
Capacity Utilization |
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|
|
|
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Total Industry |
78.9% |
79.5% |
79.5% |
79.6% |
78.9% |
Manufacturing |
77.2% |
77.8% |
77.7% |
77.8% |
77.6% |