October industrial production came in a little soft, up just a tenth of a percent and details show utilities output slowed 0.5% and mining slipped 0.3%, explained analyst at Wells Fargo. They point out that the key manufacturing category extended its streak, adding 0.3%.
Key Quotes:
“Manufacturing production comprises about three quarters of all output and here we observed the fifth straight monthly increase, the longest uninterrupted streak since 2013.”
“For a number of reasons, including vulnerability to weather trends, the utilities sector is notoriously volatile. In October, utilities output slumped 0.5%.”
“While also volatile, trends can still be seen in mining output as activity tends to rise and fall with energy prices. The recent steep declines in oil prices are clearly not a good development for this category. Some retracement in oil prices would be a relief.”
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