Oct 17, 2017 04:55 PM

US storm damage keeps IP depressed... - ING

"US Industrial production rose 0.3%MoM, in line with expectations. A two-tenths upward revision to August was also announced (-0.7% versus -0.9% originally reported)," notes James Knightley, Chief International Economist at ING.

Key quotes:

"The details show that manufacturing output rose 0.1%MoM, utilities grew 1.5%MoM while mining was up 0.4%MoM. The Federal Reserve had suggested in advance of the report’s publication that the data would be liable to revision given a lack of information on which operations were back up and running after Hurricane Harvey while Hurricane Irma will have had a depressing effect on figures from Florida."

"Nonetheless, the outlook remains positive with manufacturing set to strengthen in coming months. The domestic story is encouraging with the ISM manufacturing headline figure at a 13 year high while the softer dollar (relative to last year) and strengthening foreign demand should support exports. Meanwhile, mining output should gradually move higher given rising oil prices and rig counts. Consequently, we look for the sector to make a meaningful contribution to 4Q GDP even if it has disappointed in 3Q through the hit from the storms."