Industrial production moved-up 0.9% in October, month on month, (m/m) besting analyst’s consensus forecast. This was the strongest monthly gain since April of this year.

New orders for durable goods orders surprised to the upside coming in at 2.2% in September. The change this month was mainly in the non-defense aircraft segment which surged by double digits.

Manufacturing capacity utilization (MCU), scored a 75.1% in September, flat month on month, (m/m). On a year on year (y/y) comparison MCU was up 0.7%. According to the Federal Reserve, the current rate of MCU is 3.3 percentage points below its long term average.

Industrial production bounced back in September, up 0.3% month on month, (m/m), after taking a 0.9% dip in August. Production was broad based. Utilities and mining posted gains, which were unexpected due to the damage caused by the recent hurricanes.

After a disappointing month in July, August advanced durable goods orders rebounded in August rising 1.7%. On a year to date, (YTD) year on year, (y/y) comparison, DG increased by 5.1%. The change this month was mainly in the non-defense aircraft segment.

Manufacturing fundamentals continue to improve. Both the U.S. and global economy are strengthening and at the same time, the dollar has depreciated against the Broad Index, (basket of countries’ currencies that the U.S trades with).