Industrial Production Dips 1.2% in August; Macro Pressures Curb Durables Orders
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Price: $35.74 -0.69%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 3.1%
EPS Growth %: +45.5%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 3.1%
EPS Growth %: +45.5%
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U.S. industrial production contracted for the first time in five months, dropping 1.2 points from the same period last year.
According to the Fed, "Hurricane Isaac restrained output in the Gulf Coast region at the end of August, reducing the rate of change in total industrial production by an estimated 0.3 percentage point."
Consensus views expecting expected flat expansion of 0.5 points. Production last contracted in March, by about 0.6 points.
Production dropped across all segments, with materials falling the most, at 1.5 points. Key points:
The global slowdown during the month added to lagging production. Earlier in the week, chip giant Texas Instruments (Nasdaq: TXN) offered a mid-quarter update narrowing its earnings range for Q3 to 38 cents to 42 cents. The number still came in below expectations of 45 cents, signaling that orders and backlog from global customers hasn't been able to keep pace with lofty market expectations.
Today, U.S. markets are still on the up-and-up following broader stimulus measures by the Fed, as announced Thursday. For more color, Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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According to the Fed, "Hurricane Isaac restrained output in the Gulf Coast region at the end of August, reducing the rate of change in total industrial production by an estimated 0.3 percentage point."
Consensus views expecting expected flat expansion of 0.5 points. Production last contracted in March, by about 0.6 points.
Production dropped across all segments, with materials falling the most, at 1.5 points. Key points:
- Durable good production down 2.9 points while nondurables were off 0.7 percent;
- Automotive product production fell 4.7 points;
- Non-energy good production dropped 0.2 points;
- The consumer energy index fell 2.1 points, driven by a fall in residential electricity sales;
- Defense and space equipment output moved up 0.5 percent; and
- Transit equipment declined 0.4 percent, its first drop in seven months.
The global slowdown during the month added to lagging production. Earlier in the week, chip giant Texas Instruments (Nasdaq: TXN) offered a mid-quarter update narrowing its earnings range for Q3 to 38 cents to 42 cents. The number still came in below expectations of 45 cents, signaling that orders and backlog from global customers hasn't been able to keep pace with lofty market expectations.
Today, U.S. markets are still on the up-and-up following broader stimulus measures by the Fed, as announced Thursday. For more color, Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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