US: Industrial production weaker, PPI unchanged - ANZ

Research Team at ANZ, notes that the US producer prices were unchanged in October and rose 0.8% y/y (1.2% exp).

Key Quotes

“The undershoot owed to weakness in the securities brokerage, investment advice, and related services prices. This component has been volatile recently and does not alter the picture that underlying inflation pressures in the US are rising, although strength in the dollar will exert downward pressure on import prices. Core PPI was unchanged at 1.2% y/y.”

“October industrial production was weaker than expected, coming in unchanged m/m. However, manufacturing output rose 0.2% m/m as it did in September. Manufacturing output accounts for about 12% of GDP and stabilisation there removes a drag from growth. Capacity utilisation eased back a bit to 75.3 (75.4).”