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Industrial Production Growth Disappoints Despite Autos Boost


US industrial production missed expectations in November, growing by 0.2% M/M (0.3% expected), with a downward revision to October (-0.9% vs -0.6% initially reported) casting it in an even poorer light.

  • The November growth figure nonetheless represented a 4-month high.
  • November's readings were fully expected to reflect a rebound in auto production due to the return to work by striking autoworkers - this indeed played out with a 7.1% rise in motor vehicles and parts production.
  • Manufacturing production grew by 0.3% (0.5% expected, -0.8% prior - a -0.1pp revision) - but ex- motor vehicles/parts, manufacturing shrank by -0.2%.
  • Outside of manufacturing, IP was mixed, with Mining output rebounding to +0.3% from -1.1% in October, and Utilities contracting for the 3rd consecutive month, at -0.4%.
  • Capacity utilization meanwhile ticked 0.1pp higher to 78.8% (0.3pp below expectations, but October had been revised 0.2pp lower).
  • Overall industrial production remains fairly sluggish, down 0.4% Y/Y. IP/manufacturing remains a fairly limited drag on growth, and is not at concerning utilization levels insofar as inflationary pressures are concerned.

Source: Federal Reserve, MNI

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