US industrial production flat in August, short of 0.3% forecast
Output was unchanged from July, against economists' expectations for a 0.3% rise.
Published
Chart: US industrial production, change on the month
US industrial production held flat in August from July, missing forecasts for a 0.3% increase.
The reading lands weeks after the Federal Reserve raised its target rate to a range of 3.75% to 4% and signaled one more increase this year. Fed Chair Kevin Warsh has said inflation remains too high, pointing to price pressure across multiple categories of goods.
Standard Chartered now expects the Fed to raise rates again in December, dropping its earlier call for no further move this year. President Trump has renewed his call for lower rates, saying he wants it done quickly, after the Fed's latest increase. DoubleLine CEO Jeffrey Gundlach has said he sees virtually no chance current rates are as high as they will go.
Flat production against expectations for growth slightly weakens the case for aggressive tightening, but not enough on its own to shift the Fed's path given Warsh's recent emphasis on persistent inflation. The data does not contradict the Fed's current stance, and it has not changed how markets are pricing additional hikes this year.