The 0.9% hurricane-induced U.S. industrial production plunge
The 0.9% hurricane-induced U.S. industrial production plunge in August followed upward revisions that left the index only modestly below assumptions, and analysts still have a 1.2% 7-month rise from weather-depressed winter readings. The August decline was led by a 5.5% utility output drop that reflected both hurricane outages and a partial reversal of the 11.9% (was 11.6%) 5-month climb through July. Analysts also saw hurricane-induced declines of 0.8% for mining and 0.3% for manufacturing, though with a 4.9% bounce for the vehicle assembly rate. Analysts expect a 0.1% growth clip for industrial production in Q3 despite hurricane hits, following rates of 5.7% (was 5.2%) in Q2 and 1.6% in Q1, with 2017 strength spread across the factory, mining and utility components, but with factory restraint from a weak vehicle sector. Analysts still have a 1.8% industrial production drop from the cyclical-peak in November of 2014 despite a 1.9% rise since May of 2016 thanks to gains in only 1 of the 6 quarters through Q2 of 2016.