US data Thursday - Industrial Production the focus (preview)
There is plenty of data on the calendar from the US on Thursday, including July industrial output
Two quick previews ... bolding mine
- We look for industrial production to increase by 0.4% m/m in July, same as June.
- However, in July's report, we expect a rebound in utilities production and a slight moderation in mining sector activity.
- We expect the momentum in manufacturing production to hold firm at about 0.3% m/m
- Seasonal adjustment for industrial production is quirky in July, as this is the month when many automakers schedule their annual factory shutdowns.
- In past years, seasonal adjustment has often led to upside surprises for industrial production. However, we are uncertain about the likely impact this year, particularly given that auto sales have been weakening.
- We forecast that both industrial production and manufacturing production rose 0.3% in July.