Updated: 16-Oct-20 09:44 ET
| September Industrial Production |
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| Updated: 16-Oct-20 09:44 ET |
Highlights
- Industrial production declined 0.6% m/m in September, which was well below expectations (Briefing.com consensus +0.6%).
- Total capacity utilization of 71.5% also disappointed (Briefing.com consensus 71.9%).
Key Factors
- Manufacturing output decreased 0.3% m/m, weighed down by weakness in the indexes for computer and electronics products and for motor vehicles and parts.
- Motor vehicle assemblies declined 7.7% m/m to a SAAR of 10.51 million.
- Utilities output declined 5.6% m/m on weaker demand for air conditioning.
- Mining output increased 1.7% m/m.
- Total industrial production is down 7.3% yr/yr; the September reading is 7.1% below the pre-pandemic February level.
- The capacity utilization rate (71.5%) is 8.3 percentage points below its long-run average.
Big Picture
- The key takeaway from the report is that it defied the rebound momentum that had been building in the third quarter. It was the first decline in five months, but despite the September decline, industrial production increased at an annual rate of 39.8% for the third quarter.
| Category | SEP | AUG | JUL | JUN | MAY |
| Industrial Production | |||||
| Total Index | -0.6% | 0.4% | 4.2% | 6.2% | 0.7% |
| Manufacturing | -0.3% | 1.2% | 4.2% | 7.6% | 3.6% |
| Utilities | -5.6% | -1.0% | 4.9% | 1.4% | -0.6% |
| Mining | 1.7% | -2.4% | 3.7% | 2.4% | -11.3% |
| Capacity Utilization | |||||
| Total Industry | 71.5% | 72.0% | 71.6% | 68.7% | 64.7% |
| Manufacturing | 70.5% | 70.7% | 69.8% | 67.0% | 62.2% |
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