US Industrial Production Moving Higher
$USO, $UGA, $USD
US industry expanded in October, with manufacturing growth offsetting declines in mining and utility production.
Industrial production ticked up 0.1%, the 5th straight monthly gainer, following a 0.2% advance in September and a 0.8% advance in August, the Fed reported Friday.
The Fed said that recent hurricanes lowered production by about 0.1 percentage point in both September and October.
The economy has been growing at a solid rate this year.
The US GDP (gross domestic product) expanded at an annual rate of 3.5% in the July-September frame, with manufacturing contributing to the momentum.
But there are concerns that the strong USD, and a slowdown in global growth could hurt future US export sales.
Also, there are worries about labor shortages and the impact of President Donald Trump’s get-tough trade policies, which have featured higher tariffs on aluminum and steel along with penalty tariffs on a range of Chinese goods.
China, levied a token retaliation with tariffs on some American products.
Factory output was up 0.3% in October, matching the previous month despite a big drop in auto production, which fell 2.8% last month. It was the 2nd decliner for the auto sector in the past 4 months
The Fed report showed that production of primary metals jumped a strong 3% in October. That was the highest monthly gainer since November 2012.
President Trump’s tariffs on foreign-made steel and aluminum were aimed at boosting prospects for US producers.
Output at the nation’s utilities dropped 0.5% in October after a smaller 0.1% decliner in September.
Output in the mining sector, which includes Crude Oil and Nat Gas production, was down 0.3% in October following a smaller 0.1% dip in September. Both of those declines came after this sector reached and market an all-time high in August, reflecting strong gains in Crude Oil and Nat Gas production which is continuing.
Have a terrific weekend.
Latest posts by Paul Ebeling (see all)
- People are Killing Themselves With Worry - June 17, 2019
- Some Tips to Speed Through Airport Security - June 17, 2019
- Box Office: ‘Men in Black: International’ Disappoints with $28.5-M - June 16, 2019