Hurricane Held Back US IP In Aug, But Not A Surprise To Markets

Estimates for Aug industrial production were close to the mark (+0.4% M/M vs +-0.5% expected, downwardly revised 0.8% Jul); despite uncertainty over multiple factors (Hurricane Ida, chip shortages) in Aug.

• That said, Ida was a constraint, holding down the overall IP gain by around 0.3pp (per the report).
• From the report: "Late-month shutdowns related to Hurricane Ida held down the gain in industrial production by an estimated 0.3 percentage point. Although the hurricane forced plant closures for petrochemicals, plastic resins, and petroleum refining, overall manufacturing output rose 0.2 percent. Mining production fell 0.6 percent, reflecting hurricane-induced disruptions to oil and gas extraction in the Gulf of Mexico. The output of utilities increased 3.3 percent, as unseasonably warm temperatures boosted demand for air conditioning."
• The data was largely in line - no major market reaction.