US: Industrial Production expands 0.4% in August
|- Industrial Production in the US expanded 0.4%, surpassing expectations of a 0.1% gain.
- July numbers were revised lower from 1% to 0.7%.
- US Dollar retreats modestly after the data.
Industrial Production in the US expanded by 0.4% in August, surpassing the 0.1% of market consensus. July numbers were revised lower from a 1% increase to 0.7%.
Key takeaways from the report:
Industrial production increased 0.4 percent in August, and manufacturing output inched up 0.1 percent. The August reading for manufacturing was held back by a drop of 5 percent in the output of motor vehicles and parts; factory output elsewhere rose 0.6 percent.
At 103.5 percent of its 2017 average, total industrial production in August was 0.2 percent above its year-earlier level.
Capacity utilization moved up to 79.7 percent in August, in line with its long-run (1972–2022) average.
Manufacturing output rose 0.1 percent in August for its second consecutive monthly gain but was 0.6 percent below its year-earlier level.
Capacity utilization for manufacturing remained at 77.9 percent in August, a rate that is 0.3 percentage point below its long-run (1972–2022) average.
Market reaction
The US Dollar edged lower after the report, with the US Dollar Index (DXY) dropping below 105.30. Meanwhile, EUR/USD rebounded back above 1.0660. Later in the day, the University of Michigan will release its consumer confidence survey.
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