- Industrial Production in the US expanded 0.4%, surpassing expectations of a 0.1% gain.
- July numbers were revised lower from 1% to 0.7%.
- US Dollar retreats modestly after the data.
Industrial Production in the US expanded by 0.4% in August, surpassing the 0.1% of market consensus. July numbers were revised lower from a 1% increase to 0.7%.
Key takeaways from the report:
Industrial production increased 0.4 percent in August, and manufacturing output inched up 0.1 percent. The August reading for manufacturing was held back by a drop of 5 percent in the output of motor vehicles and parts; factory output elsewhere rose 0.6 percent.
At 103.5 percent of its 2017 average, total industrial production in August was 0.2 percent above its year-earlier level.
Capacity utilization moved up to 79.7 percent in August, in line with its long-run (1972–2022) average.
Manufacturing output rose 0.1 percent in August for its second consecutive monthly gain but was 0.6 percent below its year-earlier level.
Capacity utilization for manufacturing remained at 77.9 percent in August, a rate that is 0.3 percentage point below its long-run (1972–2022) average.
Market reaction
The US Dollar edged lower after the report, with the US Dollar Index (DXY) dropping below 105.30. Meanwhile, EUR/USD rebounded back above 1.0660. Later in the day, the University of Michigan will release its consumer confidence survey.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD holds steady above mid-1.2700s after UK exit polls point to Labour victory
GBP/USD consolidates in a range just above mid-1.2700s during the Asian session on Friday after exit polls suggested that Britain’s main opposition Labour Party was set to win a massive majority in the UK general election. The outcome sets the stage for a rate cut by the Bank of England in August and acts as a headwind for the British Pound.
AUD/USD bulls take a brief pause near multi-month peak ahead of US NFP
AUD/USD consolidates near a multi-month peak during the Asian session on Friday as traders keenly await the release of the US NFP report. In the meantime, expectations of interest rate cuts by the Federal Reserve undermine the US Dollar and act as a tailwind for the pair amid bets for a rate hike by the Reserve Bank of Australia.
Gold price consolidates amid choppy trading ahead US NFP
Gold price edge up 0.15% amid thin trading on US Independence Day. XAU/USD reached a two-week high of $2,365 Wednesday, driven by weak US jobs data and heightened Fed rate cut expectations. Traders shift focus to Friday's NFP report.
Is the party over for meme coins?
According to Santiment's data on Thursday, meme coins have experienced steep declines in the past few weeks, following speculation that the crypto market has passed its euphoria phase.
Labour wins a landslide, as Pound is unconcerned by Starmer government
What a difference five years makes, Labour have turned themselves around and are on course to win 410 seats and a 170-seat majority, according to the exit polls conducted by the main UK broadcasters.