US Manufacturing Recession Continues For Second Month In A Row

The good news is that total US industrial production, which also includes output at mines and utilities, increased 0.6%, the most in a year as crude oil extraction bounced back after Hurricane Barry depressed drilling in the Gulf of Mexico a month earlier.

The bad news is that it was not enough to improve the deteriorating annual trend which showed a mere 0.4% YoY growth - the weakest since January 2017...

Source: Bloomberg

Manufacturing production jumped 0.5% MoM (well above the +0.2% expected) but...

But thanks to production of motor vehicles decreasing 1%, the most in four months, the worst news is that manufacturing production remains down on a YoY basis (-0.4% YoY) for the second month in a row...

Source: Bloomberg

The industry slipped into a recession during the first half of 2019 amid slowing overseas demand, exacerbated by an ongoing trade war with China. While domestic demand may help cushion producers from a deeper slowdown, the risk is that output could remain anemic in coming months.