U.S. Industrial Production

U.S. Industrial Production Expands in October, 11/16/2011
• Industrial production (IP) rose 0.7% in October, surpassing market expectations for a 0.4% gain.
September’s figure was revised downward to -0.1%, after initially coming in at 0.2%.
• The manufacturing sub-index accelerated 0.5% in October from 0.3% growth in the month prior.
• Capacity utilization, an indicator of whether industrial production is operating at potential, inched up to
77.8%. It is now 2.1 percentage points above its rate from a year earlier, but 2.6 percentage points
below its long-run average from 1972 to 2010.

U.S. Consumer Prices see mild decline in October 11/16/2011
• The U.S. Consumer Price Index (CPI) fell 0.08% in October, slightly below market expectations for a flat reading.
• Annual inflation now stands at 3.5%, 0.4 percentage points lower with respect to the previous month.
• On the other hand, core inflation – a measure that excludes energy and food prices – gained 0.2% on
the month. As a result, annual core inflation is now up to 2.1% from 2.0% in September.
• The decline in headline inflation resulted from a 1.1% monthly decline in the transport sub-component, which was caused by a 3.1% m/m decline in gasoline prices and a 0.4% drop in vehicle prices. The
recreation sub-component of CPI also saw a mild 0.1% decline in October.
• Increases in apparel (+0.4%), medical care (+0.5%), housing (+0.2%), and food and beverages (+0.1%) partially offset the decline in overall CPI.

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