U.S. industrial production grows strongly in September

U.S. industrial production saw another strong growth in the month of September, driven by strong rise in mining activity and a rise in motor vehicle production. On a sequential basis, industrial production rose 0.3 percent, as compared with the consensus expectations of 0.2 percent gain, following a 0.4 percent rise in August.

Within the manufacturing segment, production rose 0.2 percent sequentially in September, in line with expectations and slightly below August’s upwardly revised 0.3 percent rise. Stripping motor vehicles and parts, manufacturing activity rose 0.1 percent after the fall of 0.1 percent seen in August.

Smoothing through the volatility of the monthly prints, the estimates indicate that rises in motor vehicle production have driven an acceleration in manufacturing activity in recent months, with activity in the segment rising 3.1 percent 3 month saar in September, compared with 1.2 percent 3 m saar over the preceding three months.

Stripping motor vehicles and parts, production rose 2.4 percent 3m saar in September, although down slightly from June’s 2.8 percent 3m saar rise. Capacity utilization in the manufacturing sector was 78.1 percent in September, still slightly short of its 78.3 percent average over 1972-2017.

Looking at details, activity across segments have mixed changes. Production in the motor vehicles and parts category jumped another 1.7 percent sequentially in September, on the heels of August’s 4.3 percent sequential gain. Although the rise in ex-motor vehicle grouping activity was modest, rises in the machinery and computers and electronics segments came in strong.

In the meantime, activity in the mining segment recorded a strong 0.5 percent sequential rise in September, the latest in a string of solid monthly rises that collectively have stimulated activity 13.4 percent year-on-year.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -26.2098. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex