| Actual | Previous | Revised | |
|---|---|---|---|
| Month over Month | -1.0% | 2.8% | 2.7% |
| Year over Year | -0.3% | 1.5% | 1.4% |
Highlights
Industrial production contracted in October, falling a seasonally adjusted 1.0 percent from a revised 2.7 (2.8%) percent in October, and fell 0.3 percent year-on-year from 1.4 percent in September.
Among the main components, only energy production increased, rising 0.7 percent month-on-month. Production of consumer goods fell the most, decreasing 1.8 percent from September, the largest decline since December last year, followed by declines of 1.0 percent and 0.3 percent for capital good and intermediate goods. goods, respectively.
On the year-on-year comparison, a 1.1 percent increase for intermediate goods could not offset a decline of 2.0 percent for the production of consumer goods. At the same time, output for capital goods dropped 0.7 percent, while energy production contracted 0.2 percent.
Other reports have shown softness in the consumer sector and today's data are a reflection of that. To be sure, production data can be volatile, and it's worth looking at a three-month comparison. The average production from August to October is down 0.9 percent compared to the previous three months, confirming a sluggish industrial sector.
Among the main components, only energy production increased, rising 0.7 percent month-on-month. Production of consumer goods fell the most, decreasing 1.8 percent from September, the largest decline since December last year, followed by declines of 1.0 percent and 0.3 percent for capital good and intermediate goods. goods, respectively.
On the year-on-year comparison, a 1.1 percent increase for intermediate goods could not offset a decline of 2.0 percent for the production of consumer goods. At the same time, output for capital goods dropped 0.7 percent, while energy production contracted 0.2 percent.
Other reports have shown softness in the consumer sector and today's data are a reflection of that. To be sure, production data can be volatile, and it's worth looking at a three-month comparison. The average production from August to October is down 0.9 percent compared to the previous three months, confirming a sluggish industrial sector.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Construction is excluded. Approximately 4,100 companies provide data on more than 8,000 monthly flows of production.
Description
Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more subdued growth that will not lead to inflationary pressures. By tracking economic data such as industrial production, investors will know what the economic backdrop is for these markets and their portfolios. Like the PPI and the orders data, construction is excluded from the data. This report has a big influence on market behavior. In any given month, one can see whether capital goods or consumer goods are growing more rapidly. Are manufacturers still producing construction supplies and other materials? This detailed report shows which sectors of the economy are growing and which are not.
