US Industrial Production: below consensus but with signs of improvement - Wells Fargo

According to analysts from Wells Fargo, today’s report on Industrial Production showed tentative signs of improvement in the industrial sector. 

Key Quotes: 

“Industrial production eked out a 0.1 percent gain in September. The increase was slightly less than consensus expectations for a 0.2 percent gain and follows a downward revision to August production. Yet with a solid gain in July, production rose at a 1.8 percent annualized rate in the third quarter, the strongest quarterly gain in a year as manufacturing and mining activity has stabilized somewhat.”

“Manufacturing, which accounts for just over three quarters of total industrial production, rose 0.2 percent last month. That put manufacturing production for the quarter up at a 0.9 percent annualized rate, which is an improvement over the prior three quarters, but still relatively weak. September’s stronger than expected outturn for manufacturing was traced to a 0.5 percent gain in nondurables, while durables production was flat.”