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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DATA REACT
The familiar theme of supply chain constraints underlined the weakness in September industrial production growth (-1.3% M/M, vs +0.1% M/M expected - in addition to a 0.5pp downward revision to August to -0.1%). Though Hurricane Ida fallout also played a role.
- The report noted that motor vehicle and parts production dropped 7.2% "as shortages of semiconductors continued to hobble operations" (non-auto factory output fell 0.3%). The autos sector as a whole has seen sagging output for several months (see chart).
- Meanwhile, utilities output fell 3.6% "as demand for cooling subsided after a warmer-than-usual August."
- Mining production fell 2.3%: "the lingering effects of Hurricane Ida more than accounted for the drop in mining in September; they also contributed 0.3 percentage point to the drop in manufacturing. Overall, about 0.6 percentage point of the drop in total industrial production resulted from the impact of the hurricane."
- Once again, output appears to have been stunted largely due to supply chain factors (and in this case, a natural disaster) rather than any unexpected factor or struggling demand, so the very disappointing figure vs consensus is being largely shrugged off by markets: Treasuries and the USD did not show any discernable reaction.
Source: Federal Reserve
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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