US industrial production probably contracted in August

In US, continued production-worker layoffs and cutbacks in hours worked suggest that output at the nation's mines fell by 1.6% during the reference period, knocking 0.3 percentage point off the headline measure. 

"Reduced mining activity, combined with an automotive-led contraction in factory output, probably pared the Federal Reserve Board's industrial production gauge by 0.5% in August, the largest one-month decline since March 2012", says Societe Generale. 

Reflecting a partial reversal of July's leap in motor vehicle assemblies, manufacturing production likely declined by 0.4% in August, erasing one half of the prior period's gain. With additions to productive capacity eclipsing output by wide margin, the overall operating rate probably fell to an 18-month low of 77.5%. 

"These projections, if on the mark, would place industrial production over the July-August span 1.1% annualized above the April-June average, after a 2.0% contraction during the spring quarter", added Societe Generale.