US industrial output plunged again in October – ING

Commenting on the Federal Reserve’s monthly data that showed both the Manufacturing Production and the Industrial Production in the United States declined  in October, “US industrial output plunged again in October as the combination of weak global activity, trade uncertainty and a strong dollar weighed on activity,” said ING analysts. “Unfortunately, business surveys suggest there is more pain ahead for the sector.”

Key quotes

“US industrial production fell 0.8% month-on-month in October – the biggest decline in output since May 2009 – as manufacturing, utilities and mining all posted declines. This is the third monthly output drop in the last four months with output now down 1.1% year-on-year.”

“Manufacturing remains a clear concern as weakness in global growth, trade uncertainty and the strong dollar all weigh on sentiment and demand in the sector. Output fell 0.6% here after a 0.5% fall in September, bringing the year-to-date drop in output to -2.2%. In fact, output remains 5.5% below the peak seen in December 2007.”

“The legacy of the GM strike is still in the data with output of motor vehicles down 7.1% MoM, but even when this component is excluded non-motor vehicle manufacturing output still fell 0.1% MoM.”