US industrial production likely rose by 0.2% in April - Nomura

Research Team at Nomura, notes that the US Bureau of Labor Statistics (BLS) reported that aggregate hours worked in the manufacturing industry increased in April which is suggestive of a higher pace of manufacturing production in April, which had declined during the prior month.

Key Quotes

“In addition, based on weekly electric utility output data, we expect an increase in utility production in April. With the increase in vehicle sales in April, we forecast that vehicle production also rose. On the flip side, declines in weekly crude oil production and the oil and gas rig count point to a continued decline in mining production.

Taking all these inputs into consideration, we believe that industrial production rose by 0.2% (Consensus: 0.3%) in April, after a sizable 0.6% decline in March.”