https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
FR: Industrial Production
| Consensus | Consensus Range | Actual | Previous | Revised | |
| Month over Month | -0.1% | -0.2% to 0.6% | -0.1% | -0.1% | 0.2% |
| Year over Year | 2.1% | 1.1% | 1.8% |
Highlights
Industrial output contracted in November, falling 0.1 percent from October when it increased 0.2 percent, while gaining 2.1 percent from November of last year. The month-on-month result is in-line with the median of an Econoday survey of economists' forecasts.
Machinery and equipment output rose 1.0 percent in November after falling 2.0 percent the month before, while transportation equipment manufacture increased 2.6 percent month-on-month. Still, these gains were not enough to keep overall production from contracting in December .
Mining and quarrying output fell 1.9 percent during the reporting month, reversing an increase of the same magnitude the month before. At the same time, food and beverage output declined 0.5 percent month-on-month.
Among major industry groups, output was mixed. Gains of 1.8 percent for capital goods and consumer durables were tempered by declines of 1.8 percent for energy, 1.0 percent for consumer non-durables. Rounding out the decliners was a 0.8 percent drop in intermediate goods production.
Transportation and energy have been the main drivers of production in recent month. Currently other indicators are showing weak domestic demand, although there has been some pickup in export orders. Uncertainty geopolitically and domestic political statis is weighing on the production sector.
Market Consensus Before Announcement
Output seen down 0.1 percent on the month in November after the same 0.1 percent decrease in October.
Definition
Industrial production measures the physical output of the nation's factories, mines and utilities. Manufacturing is seen as the best guide to underlying developments as some sectors can be very volatile and cause misleadingly large short-term swings in total industrial 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 won't 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.