US: Another decline in industrial production – Wells Fargo

Industrial production in July dropped 0.2% in the US, according to data released today. Analysts at Wells Fargo point out that beyond the headline, more worrying is that both manufacturing and mining are in a trend decline thus far in 2019.

Key Quotes: 

“Manufacturing output fell 0.4% in July, marking the fifth monthly decline in the first seven months of the year. Headwinds from the trade war and the related slowdown in global growth have been weighing on the sector.”

“The heat wave in July may have been a factor in the surge in utilities output. The 3.1% increase in this category helped offset some of the losses in other areas.”

“The trend decline in commodity prices may be weighing on activity in the mining sector. Production at the country’s mines slowed 1.8%, the biggest monthly drop in three years and also the fifth monthly decline in the first seven months of the year.”