U.S. Industrial Production Improves

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Meanwhile, here are the major economic headlines from the last week:

• U.S. industrial production increased 0.3 percent in September and advanced at an annual rate of 2.5 percent in the third quarter of 2023. Manufacturing output was up 0.4 percent while index for mining increased 0.4 percent and the index for utilities fell 0.3 percent. Read the full report from the Federal Reserve here.
• The Conference Board’s Leading Economic Index fell 0.7 percent in September, marking the 18th consecutive month of negative performance. Specifically, the reading declined by 0.7 percent in September 2023 to 104.6 after falling 0.5 percent in August. The U.S. economy is still expected to experience significant third quarter growth, however, the Conference Board said.
• Wholesale trade rose 2.3 percent in August to $60.77 billion, Statistics Canada reported last week. In price-adjusted terms, wholesale sales in Canada were up 2.2 percent for the month.
• Retail sales in Canada decreased 0.1 percent to $66.1 billion in August. Sales were down in six of nine subsectors and were led by drops at motor vehicle and parts dealers. Sales in those industries fell 0.9 percent.
• The Federal Reserve Bank of Philadelphia reported manufacturing activity in its region was mixed this month. Its indicator for general activity remained negative, while readings for new orders and shipments were positive, but low. The bank’s manufacturing employment index turned positive and firms continue to expect growth overall over the next six months, but most future indicators declined. Read the full report here. Manufacturing activity also softened in New York. The Federal Reserve Bank of New York said its general business conditions index dropped seven points to -4.6. New orders fell slightly and shipments were stable. Unfilled orders declined, inventories held steady, labor market indicators pointed to a slight increase in both employment and the average workweek, and, finally, firms remained relatively optimistic about the six-month outlook. Read that report here.
• The number of people who filed for U.S. federal unemployment benefits fell to 198,000 during the week that ended October 14, down from 211,000 the week before. The four-week moving average of first-time claims also fell, but the number of people continued to receive benefits rose. That number was at 1.734 million during the week that ended October 7, up from 1.705 million one week ago. The four-week moving average of continuing claims also rose.
• In other economic news: The number of new homes under construction in the United States increased seven percent from August 2023 to September 2023, but was still down 7.2 percent between September 2022 and September 2023; Canada’s consumer price index fell 0.1 percent from August 2023 to September 2023, but was up 3.8 percent year-over-year; and the number of existing home sold in the United States fell two percent from August 2023 to September 2023, but was up 2.8 percent year-over-year.