US: Industrial production likely to increase by 0.2% in July - Nomura

Analysts at Nomura expect only a modest 0.2% m-o-m increase industrial production in July after a 0.6% increase in June.

Key Quotes

“We think that the manufacturing output excluding autos likely remained steady after registering a 0.3% gain in the prior month. While trade uncertainties possibly weighed on manufacturers’ assessment of future conditions, current demand appears to have been firm and points to steady growth in output in the near term.”

“Autos and auto parts production growth likely moderated in July after a sharp increase of 13.9% in June following an idiosyncratic disruption to truck production in May. Mining sector output likely rose at a modest pace in July. Incoming data suggest that while crude oil and liquid gas extraction continued to grow strongly, extraction of other materials slowed. In addition, based on industry data, utility production may have declined in the month.”