Commentary Directory
- Q1 GDP Growth Jumps 1.1% on Strong Personal Consumption
- A Strong March Leads to a Surge in Chinese GDP in Q1 2023
- Durable Goods Retail Sales Suffer from High Interest Rates and Wary Consumers
- Choppy GDP Means UK Should Avoid Q1 Recession
- Japanese Consumer Confidence Jumps to Highest Level in Over a Year
- The End of Summer Sees the End of Disinflation in Europe
- Labor Market Indicators are Starting to Unify on Easing in Hiring
- Inflation and Tight Financial Conditions Weigh on the German Consumer
- Euro Area Money Supply Contracts for the First Time Since 2010
- Dismal Economic Data Out of Germany
- Core Durable Goods New Orders See Gentle Uptrend in July
- More UK Data Pointing to Q3 Decline
- Whispers of a UK Contraction in Q3
- Japan's Core Inflation Resumes Uptrend in July
- Early July Economic Data Leads to a Sharp Increase in Q3 Growth Expectations
- UK CPI: Energy Inflation Crashes but Services Inflation is Still Sticky
- China's Weak Start to Q3 Means More PBoC Easing
- Bank of Japan is Too Optimistic on Inflation
- The Bank of England Pauses in a Near Split Decision
- UK Inflation August Update: A Precursor to the Bank of England's Announcement
- Housing Starts Tumble in August Amid Rising Mortgage Rates
- US Retail Sales Grow at Fastest Monthly Rate Since the Start of the Year
- US Consumer Prices Surge in August Driven by Energy Costs
- August NFIB Survey Showed a Tough Environment for Small Businesses
- All Signs Point to a Weaker Labor Market in August
- Thoughts on GME and This Week in the Stock Market
- Record Home Price Levels Point to Strength in Post-Pandemic Economy
- The Stock Market Looks Overvalued, but It's Probably Not
- China GDP Growth Surpasses Expectations
- President-elect Joe Biden Introduces His "American Rescue Plan"
- Political Polarization Intensifies with Another Impeachment Along Party Lines
- Metal Demand Has a Bright Future in 2021 and Beyond
- What Happened to That US-China Trade Dispute?
- Civil Unrest, A Rising Threat to the 2021 Economy
- What's in the $900 Billion Relief Plan?
US Industrial Production: August 2023
Jacob Hess
September 15, 2023
- EconoBrief
- US
US Industrial Production
9/15/2023 (August 2023)
+0.4% MoM (+0.2% YoY)
Above Expectations
Highlights
| Manufacturing Production | +0.1% MoM (-0.6% YoY) |
In August, industrial production saw a growth of 0.4% MoM, with manufacturing output marginally increasing by 0.1% MoM. This subdued growth in manufacturing was primarily due to a significant -4.8% MoM decline in the production of motor vehicles and parts. However, other sectors witnessed positive momentum: mining output grew by 1.4%, utilities by 0.9%, and the production of defense and space equipment surged by 3.5%. Within the manufacturing domain, durable manufacturing saw a slight increase, nondurable manufacturing grew by 0.2%. Notably, mining's growth was driven by a 3% rise in oil and gas extraction. Overall, capacity utilization in August reached 79.7%, aligning with its long-term average from 1972-2022.
Industrial production churned higher for the second straight month in the third quarter to help keep the annual increase positive. It’s worth noting that outside of the volatile movements in auto manufacturing over the last two months, industrial production has been in a consistent short-term uptrend. Industrial production (ex-auto) and manufacturing production (ex-auto) are up 1.2% and 0.6% from June to August. This means that industry is so far maintaining a positive contribution to growth in the current quarter despite the full force of rate hikes causing credit conditions to tighten. Suddenly, the industrial sector of the US economy is not looking so bad.
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