Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
X •  LinkedIn
  Industrial Production Increased 0.2% in November
Posted Under: Data Watch • Industrial Production - Cap Utilization
Supporting Image for Blog Post


Implications:  There wasn’t much to get excited about in this morning’s report on industrial production. The headline index rose a modest 0.2% in November, which was less than the consensus expected, and remains down 0.4% from a year ago.  Looking at the details, the biggest source of strength in November was the manufacturing sector which posted a gain of 0.3%.  But that was driven entirely by the volatile auto sector, where activity jumped 7.1% as striking workers got back to work.  Meanwhile, non-auto manufacturing, which we think of as a “core” version of industrial production, declined 0.1% in November and is down 1.1% from a year ago.  The brightest news in the report was that the production of high-tech equipment rose 1.7% in November and is up 14.4% in the past year, by far the strongest growth of any major category.  Further, that growth has been accelerating recently, up at an even faster 20.6% annualized rate in the past six months. This likely reflects investment in AI as well as the reshoring of semiconductor production, which remains temporarily strong due to the CHIPS Act, despite broader weakness in the industrial sector.  The mining sector posted a 0.3% gain in November, as a faster pace of oil and gas extraction more than offset a decline in the drilling of new wells and less extraction of other minerals.  Meanwhile, the utilities sector (which is volatile and largely dependent on weather), posted a decline of 0.4% in November.  In other news this morning, the Empire State Index, a measure of New York factory sentiment, dropped to -14.5 in December from +9.1 in November.  We will be watching other regional surveys closely for hints about the path of the factory sector.

Click here for a PDF version

Posted on Friday, December 15, 2023 @ 11:12 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.