US Manufacturing Rises in October Auto Declines

U.S. manufacturing output rose in October, but a third straight month of declines in motor vehicle production suggested some slowdown in the pace of factory activity.

Factory production increased 0.2 percent last month after a downwardly revised 0.2 percent rise in September, the Federal Reserve said on Monday.

Economists polled by Reuters had forecast manufacturing output rising 0.3 percent in October after a previously reported 0.5 percent gain in September.

Motor vehicle output fell 1.2 percent in October. That followed September’s 1.9 percent drop and was the third consecutive month of declines.

Mining output dropped 0.9 percent last month, while utilities production fell 0.7 percent.

Those declines eclipsed the gains in manufacturing, leaving overall industrial production slipping 0.1 percent in October. September’s increase in industrial output was revised down to 0.8 percent from 1.0 percent.

The amount of manufacturing capacity in use slipped to 77.2 percent last month from 77.3 percent in September.

Overall industrial capacity use fell to 78.9 percent from 79.2 percent in September. It was 1.2 percentage points below its long-run average.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza