Release Explanation: The total value of the output from mines, industrial factories and utilities is in the Industrial read. The value of manufactured goods is in the Manufacturing read. The Shipment number covers the amount sent abroad. Capacity Utilization cover at what rate Factories are running at compared to the maximum. High production numbers usually denote an economy in an upwards trend, or growth period. These reports are reactive to change and are well respected. GDP will normally be directly affected by the Industrial Production component. Durable Goods and Retail Sales will normally be affected by the Manufacturing aspect of the report. A currency will eventually be affected by these numbers, but only once they filter through to the main releases.
Trade Desk Thoughts: Industrial production decreased 0.6% in November with declines widespread across industries. The drop in output in September was revised down to -4.1%. The rebound in October was revised up to 1.5% in large part because both the decrease due to the September hurricanes and the subsequent partial recovery in October were larger than previously reported.
Manufacturing production dropped 1.4% in November despite the resumption of activity in the commercial aircraft industry after the resolution of the Boeing strike early in the month. The output of mines advanced 2.5 primarily as a result of a further post-hurricane recovery in crude oil and natural gas operations in the Gulf of Mexico. Taken together, the rebounds after the strike and the hurricanes added almost 1 percentage point to the change in industrial production. The output of utilities rose 1.6%.
At 106.1% of its 2002 average, total industrial production in November was 5.5% below its level of a year earlier. The capacity utilization rate for total industry fell to 75.4%, a level 5.6 percentage points below its average level from 1972 to 2007.
Machinery production fell by 2.4% in November after slipping 2.1% in October. Home electronics fell 1.7% in November. Appliances and furniture dropped 4.0%. Paper products slipped 0.6%. Business equipment increased, rising 3.2% in November. Production of construction supplies fell 3.3% in November after sliding 1.4% in October. Output at the nation's technology firms decreased 1.9% in November after falling 1.4% in October.
Forex Technical Reaction: S&P futures were down around a point heading into the Wall Street open. The euro was just off session highs and USD/JPY looked to have found a base in the 90.25 area.