US Industrial Production Jumps In September As Capacity Utilization Hits 14 Year High

After falling for the 3 of the last 4 months, US Industrial Production was expected rise modestly in September. Instead it surged 0.4% MoM (considerably more than the +0.1% exp) and August -0.2% was revised up to -0.1% MoM. This pushed the YoY gain up 5.33% (but remember this is a notional, not inflation-adjusted level)...

Source: Bloomberg

On the manufacturing side, production also increased more than expected in September (+0.4% MoM vs +0.2% exp) and that also saw a major upward revision for August from +0.1% to +0.5%. Manufacturing production has risen for 3 straight months and is up 4.7% YoY...

Source: Bloomberg

Capacity Utilization also rose more than expected in September, finally pushing above Aug 2018's highs...

Source: Bloomberg

This is the highest utilization rate since March 2008.

This is not what The Fed would like to see from its aggressive tightening.