US: Industrial production likely to post 0.4% gain in August – Nomura

Analysts at Nomura are forecasting a 0.4% m-o-m gain in the US aggregate industrial production.

Key Quotes

“The manufacturing sector activity has been improving resiliently over the past year and a half. While there have been increased signs of slowing external growth, strong domestic demand will likely remain supportive for industrial activity expansion.”

“Against this backdrop, we expect a steady 0.3% gain in ex-auto manufacturing output. Moreover, based on industry forecasts, auto assemblies likely picked up sharply in August after a transitory slowdown in July and should contribute to aggregate industrial output.”

“For the mining sector, we expect a rebound in output considering firm increases in crude oil and gas extraction. However, considering active oil rig counts that plateaued in August, the contribution from mining support activity would be muted.”