Industrial Production Drops; Auto Manufacturing Slumps 3rd Month In A Row - Worst Run In 5 Years

Driven by a combination of Mining (-0.9% - biggest drop in a year), Utilities (-0.7% led by a 3.2% plunge in Natural Gas) and most of all motor vehicle manufacturing (-1.2%), US Industrial Production slid 0.1% in October (notably missing expectations of a 0.2% rise). This is the 3rd monthly drop in motor vehicle & parts production - the worst consecutive run since Jan 2009. It seems the government-free-credit inspired subprime auto boom that provided just enough impetus to a fragilee conomy to enable the Fed narrative of "things are better" to play out... has ended... abruptly.

 

Industrial Production drops, missing notably.

 

Worst auto production run since Jan 09

 

 

Charts: Bloomberg

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