Data double-dip: industrial production, import prices
SPY•U.S. industrial production rose 0.7% and import prices excluding tariffs climbed 1.1% last month, both above economists’ expectations. Export prices rose 2.2%, while stocks were mixed.
1. Output accelerates
Industrial output rose 0.7% last month, up from 0.1% growth in August and above the 0.4% expected. Manufacturing output increased 0.3%, in line with consensus, while capacity utilization rose half a percentage point to 76.9%, its highest since December 2023. High-tech output gained 1.5%; excluding high-tech, output rose 0.6%.
2. Prices rise faster
Import prices excluding tariffs rose 1.1%, more than economists’ 0.9% forecast and over twice August’s 0.5% increase. Imported petroleum prices rose 4.6%, and industrial supplies prices increased 2.7%. Export prices climbed 2.2%, versus a 1.1% consensus forecast. The article said the latest indicators point to energy price pressures spreading into broader inflation, prompting markets to reassess expectations for central bank policy.
3. Markets mixed
The Dow gained, while the S&P 500 edged down and the Nasdaq declined. Materials led S&P 500 sector gainers; technology and communication services were the only sectors in the red.
