A couple of bank previews on the IP data due from the US Tuesday
Barclays:
- Incoming data on chemical and petroleum production, alongside weaker September vehicle assembly data, point to weaker mining and manufacturing production in September.
- We also expect a decline in utilities production, leading to another drop in monthly industrial production, by 0.5% m/m.
- We expect the IP data to show stronger momentum beginning in October, particularly given the rebound in auto sales on the month which would point to stronger vehicle assemblies.
HSBC:
- Industrial production fell 0.9% in August. The decline largely reflected the effects of Hurricane Harvey, which disrupted oil and gas drilling, petroleum refining, and petrochemical production in the Gulf Coast region.
- Production disruptions from Hurricanes Harvey and Irma likely continued to hold down the level of industrial output in September, but there could be some sign of recovery in certain categories.
- We forecast that industrial production rose 0.1% m-o-m in September, with manufacturing production rising 0.2%.
