Output Slows in August as Fed Surveys Portend Trouble Ahead

Source: Economics Group of Wells Fargo Bank, N.A.Summary Industrial production lost momentum in August falling 0.2%. While a 2.3% drop in utilities and a flat reading for mining offered no help, manufacturing did eke out a scant 0.1% gain, but regional Fed surveys portend trouble on the horizon for the factory sector. Manufacturing Losing Momentum with Contraction on the Horizon Manufacturing may be losing some momentum, but the 0.2% decline in industrial production in August may be overstating the weakness somewhat. Manufacturing output, which comprises roughly three quarters of all production moved up 0.1% (chart). Durable manufacturing was flat, while nondurable manufacturing rose 0.2%. Within durables, machinery, computer & electronic products, aerospace and miscellaneous transportation equipment all posted gains of 1% or more offsetting some weakness in motor vehicles. READ FULL ARTICLE>>