Dec 15: Industrial Production Decreased

Industrial Production decreased -0.6& in November to an index value of 106.1 (2002=100) following a 1.5% increase in October. Analysts expected a 0.7% reduction in the index.  Manufacturing production dropped 1.4%, despite a resolution of a strike in the commercial aircraft industry early in the month. The output of mines increased 2.5%, primarily as a result of a further post-hurricane recovery in crude oil and natural gas operations in the Gulf of Mexico.  Over the past year, the Industrial Production index decreased5.55%, largely due to declines in construction and mining activity.  Capacity Utilization was estimated at 75.4% for November, was revised from 76.4% to 76% for October, and analysts had anticipated 75.7% utilization rates.  Over the past year, the Capacity Utilization increased 1.5%. 

Net Foreign Purchases (the difference between gross purchases by foreigners of U.S. securities minus gross sales by foreigners of U.S. securities) decreased to $1.5 billion in October from a revised $65.4 billion in September (originally reported $66.2 billion).  Analysts expected a drop in Net Foreign Purchases to $47.5 billion, coming at a -96.84% surprise.  At this low level of purchases, if this trend continues, the U.S. may start to experience capital outflows.  The oscillation in net foreign purchases over the past month demonstrates current global financial instability. 

Upcoming Releases
Consumer Price Index (12/16 at 8:30 AM EST)
FOMC Policy Statement (12/16 at 2:15 PM EST)
Current Account (12/17 at 8:30 AM EST)