US industrial production probably edged higher last month

A tug of war between stepped-up manufacturing and mining output and a weather-related pullback in utilities generation likely left industrial production 0.1% higher in October, following a 0.3% contraction over the August-September span. Reflecting an anticipated snapback in non-automotive factory output, manufacturing production probably climbed by 0.3% - the best performance in three months. 

Projected rebounds in coal mining and crude oil extraction during the reference period are expected to boost the mining output gauge by 1.0%, revering half of September's reported decline. Unusually warm temperatures, however, probably pared electricity and natural gas output by 2.3%, knocking one-quarter percentage point off the aggregate production gauge last month. 

"Our projection would place October's industrial production reading 0.4% annualized below the July-September average, following a 1.9% summer-quarter rise", says Societe Generale.

With additions to productive capacity expected to match October's modest output gain, the capacity utilization rate likely remained at 77.5%.