Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Factory Production Moves Ahead in October, Energy Costs Pushing Up Inflation

Economics / Economic Recovery Nov 17, 2010 - 02:28 AM GMT

By: Asha_Bangalore

Economics

Best Financial Markets Analysis ArticleIndustrial production held steady in October after a 0.2% drop in the prior month. Activity at the nation's mines (-0.1%) and utilities (-3.4%) declined in October and offset the gains in manufacturing output. Factory production rose 0.5% in October after holding nearly steady for two consecutive months. Nearly all major categories of manufacturing posted gains in October - autos (+5.0%), wood products (+2.5%), machinery (+1.4%), computers (+0.7%) and furniture (+0.8%). The small reversal of a decelerating trend (year-to-year change, see chart 1) is the important aspect to note from the October data.


The operating rate of the nation's industries held steady at 74.8% in October but that of the manufacturing sector rose to 72.7% from 72.3% in September. The main message is that today's report is another one in a string of reports published in November that point to a positive change in the tone of data compared with economic data seen during the April-September period.

Higher Energy Prices Lift Overall Wholesale Prices

The Producer Price Index (PPI) for Finished Goods rose 0.4% in October, matching the gains seen in each of the two prior months. In October, the 3.7% increase in energy prices accounted for the increase in the headline number. Food prices fell 0.1% in October vs. a 1.2% gain in September. Excluding food and energy, the core PPI of finished goods dropped 0.6%, the first drop since October 2009. Prices of new cars and light trucks are included in the PPI in October, which frequently leads to lower prices of cars and light trucks in price measures. Prices of cars fell 3.0% and that of light trucks declined 4.3%. The core PPI appears to have bottomed out in October 2009 (+0.7% yoy increase) and has posted a 1.45% year-to-year gain in October 2010.

At the earlier stages of production, the intermediate and crude price indexes show an acceleration of wholesale prices. However, in a soft demand environment, the pass through of these higher wholesale prices to retail prices is unlikely and has not occurred, as yet.

Asha Bangalore — Senior Vice President and Economist

http://www.northerntrust.com
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.

Copyright © 2010 Asha Bangalore

The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in