Updated: 16-Nov-23 09:39 ET
| October Industrial Production |
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| Updated: 16-Nov-23 09:39 ET |
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 | |||||
| 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 | |||||
| Total Industry | 78.9% | 79.5% | 79.5% | 79.6% | 78.9% |
| Manufacturing | 77.2% | 77.8% | 77.7% | 77.8% | 77.6% |
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