Analysts at Nomura expect a steady 0.4% m-o-m increase in US industrial production in September, some of which will likely be driven by strong contributions from autos and mining sectors.
Key Quotes
“Autos and auto parts output likely increased at a solid pace, based on industry forecasts. The mining sector production likely rose firmly, based on incoming EIA data on crude oil and liquid gas production.”
“We think ex-auto manufacturing sector output increased only modestly, with downside risk related to disruptions caused by the Hurricane Florence in South Carolina and North Carolina. Carolinas’ production of textile products, food, beverage & tobacco products, furniture products and wood products accounts for substantial shares of national production.”
“These industries were likely most exposed to the storm. That said, the negative impact from the storm on manufacturing output was likely more modest than the effects of a series of hurricanes that hit the Gulf of Mexico area in 2017 and led to prolonged disruptions to rig operation, oil refining, and petrochemical production.”
“Looking through weather-related volatility, we expect continued expansion in output considering strong domestic demand in the near term. However, the easing of some manufacturing survey indices in late Q3, coupled with signs of slowing external growth, raise some concern.”
Share
