Markets are mixed after a strong set of retail sales figures but a soft set of Industrial production numbers. This set about a down move in stocks and slight US dollar strength.
United States retail sales in the US surged 1.3% month-over-month in October of 2022, he strongest increase in eight months, after a flat reading in September and beating market forecasts of a 1% gain.
Sales at motor vehicle dealers were up 1.3% as supply chain constraints have been easing while rising gasoline costs pushed sales at gasoline stations 4.1% higher. Excluding gasoline and autos, retail sales were up 0.9%.
Other increases were also seen for sales at food services and drinking places (1.6%); food and beverages stores (1.4%); nonstore retailers (1.2%); furniture (1.1%); building materials (1.1%); and health and personal care (0.5%). Retail sales aren’t adjusted for inflation.
On the other hand, sales were down for electronics (-0.3%); sporting goods, hobby, musical and books (-0.3%); and at general merchandise stores (-0.2). October data pointed to resilient consumer spending, despite high inflation and rising borrowing costs hitting consumer demand.
Meanwhile, US industrial production in the US decreased by 0.1% mom in October of 2022, after a 0.1% increase in September and missing market expectations of a 0.2% gain as higher interest rates and prices weighed on demand.
Manufacturing output went up 0.1%, below expectations for a 0.2% increase mostly supported by durable goods (0.5%). Within durables, increases of at least 1.5% were recorded by electrical equipment, appliances, and components; aerospace and miscellaneous transportation equipment; and motor vehicles and parts.
At the same time, nondurable manufacturing fell 0.3% as gains for printing and support, plastics and rubber products, and apparel and leather products were offset by losses in petroleum and coal products, textile and product mills, and paper.
Finally, mining was down 0.4%, and utilities fell 1.5%. Meanwhile, the capacity utilization rate decreased by 0.2 pp to 79.9%, a rate that is 0.3 pp above its long-run average.