Better performance from industry during November, IP and manufacturing production both rising 1.1% mom. Partly this was due to one-offs, following disruptions from the GM strike, which flattered November’s bounce. There are still a couple of sectors that look weak, notably chemicals and machinery, the latter in particular important given this is basically the capital goods part of activity.
We now have the final October purchasing managers indices for October and the data paints something of a mixed picture. That could be seen as slightly encouraging given our concerns that the economic soft spot was turning into something more damaging.
Better than expected bounce in August industrial production, although it doesn’t look so flattering in y/y terms with the growth rate (if you can call it that) slowing further to just 0.36%. And that includes a +0.68 contribution from energy. Manufacturing in other words is contracting, registering a drop of -0.44% y/y.