CAPITAL MARKETS

US industrial production recovers

Mining output the outlier after reductions across most of the industry

Staff reporter
Industrial production has risen in the US

Industrial production has risen in the US

Industrial production jumped 0.9%, surpassing expectations of a 1.5% rise, while manufacturing increased 1.3%, according to the US Federal Reserve.

Despite the recovery, mining output was the outlier, dropping 1.3% in October, with the reserve noting that Hurricane Nate had caused a sharp, but short-lived decline in oil and gas drilling and extraction.

It added that the mining output decline had "reflected reductions in all of its major components".

The reserve said total industrial production rose 2.9% over the past 12 months, with output in October at 106.1% of its 2012 average. Mining production for the month was at 108.9% of its 2012 average.

Capacity utilisation for the entire industrial sector was 77%, 2.9 percentage points below its long-run average from 1972-2016. For mining, capacity utilisation was 82.4% in October, 4.6 percentage points below the long-run average.

"With modest upward revisions for July through September, industrial production is now estimated to have only edged down 0.3% at an annual rate in the third quarter (September quarter); the previously published estimate showed a decrease of 1.5%," the reserve said.  

The Dow Jones Industrial Average index rose 171.41 points or 0.7% to 23,442.69 after the news.

 

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