Industrial Production Expanded In United States

Connecting the Dots monitors all major economic announcements in the United States and Canada, but MSCI also offers industrial metals industry-specific data products that provide much deeper analysis and insight. Visit MSCI’s website and click on Industry Data to learn more about our Metals Activity Report (MAR), Momentum Monitors, and Economic Opportunity and Risk Tracker.

Meanwhile, here are the major headlines from the last week:

• The U.S. Federal Reserve reported industrial production rose 1.6 percent in October after falling 1.3 percent in September. Manufacturing output increased 1.2 percent in October while utilities’ production rose 1.2 percent, and mining output improved 4.1 percent.
• According to Statistics Canada, manufacturing sales in the country fell three percent to $58.5 billion in September due to a sharp decline in motor vehicle sales resulting from the ongoing semiconductor shortage that has impeded auto production. Sales of motor vehicles fell 35.6 percent to $1.9 billion, the lowest level since May 2020. Read more here. Canadian retail sales also fell, dropping 0.6 percent in September, due in large part to the semiconductor shortage and slowing auto production. Meanwhile, Canadian wholesale sales grew one percent in September to $71.3 billion, the fifth increase in the past seven months.
• Regional manufacturing readings in the United States have so far been largely positive in November. The Federal Reserve Bank of New York reported its manufacturing index rose eleven points to +30.9. New orders and shipments posted substantial gains, and unfilled orders also increased. According to the Federal Reserve Bank of Kansas City, regional manufacturing activity grew, but at a slower pace than in recent months. Many firms reported additional materials cost increases, and more contacts reported delivery time delays compared to a month ago and a year ago. Labor shortages also were key inhibitor in meeting higher demand for goods. Read that report here. The Federal Reserve Bank of Philadelphia also reported strong activity in its region. The index measuring current activity rose 15 points to +39.0, its highest reading since April. Nearly 42 percent of firms reported increases in current activity this month and only three percent reported declines. The index for new orders improved 17 points to +47.4 while the current shipments index rose two points to +32.1.
• According to the U.S. Department of Labor, 268,000 individuals filed for federal unemployment benefits during the week that ended November 13, decrease of 1,000 from the previous week’s level. This is the lowest level for initial claims since March 14, 2020 when the number was 256,000. The four-week moving average of first-time claims was 272,750, a decrease of 5,750 from the previous week. That number was at its the lowest level since March 14, 2020 when it was 225,500.
• In other economic news: Led by sharp rises in gasoline and housing prices, Canada’s annual consumer inflation rate accelerated in October, hitting a high not seen in 19 years; the number of new homes under construction in the United States fell 0.7 percent from October 2021 to November 2021, but was 0.4 percent above its October 2020 rate; and the Conference Board Leading Economic Index® for the United States, a gauge of future growth, increased by 0.9 percent in October to 118.3. Read more here.