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Daily Roundup of Key US Economic Data for Sept. 18

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August industrial production held steady after a 0.2% gain in July, with manufacturing production down 0.3% overall and down 0.2% excluding a 1.2% drop in motor vehicle and parts production.

Utilities output rose by 1.8% on a large increase in electricity production that was partially offset by a decline in natural gas production. Mining production increased by 0.1%.

The index of leading indicators fell by 0.1% in August after a 0.2% gain in July, with negative contributions from four components, led by a large drop in business conditions expectations, and positive contributions from four components, particularly stocks and the interest rate spread.

State unemployment data for August showed lower unemployment rates in eight states and Washington, DC, with steady rates elsewhere.

The Q3 GDPnow estimate from the New York Fed is for a 2.33% gain, up from a 2.26% increase in the previous estimate.

What else is happening in International?

International

Bank of Japan Hikes Interest Rate to 31-Year High

The Bank of Japan raised its benchmark policy rate to a 31-year high of 1.25% from 1.0% at the conclusion of its monetary policy meeting on Friday.The decision, approved by a 7-2 vote, was in line with market expectations and marked the second rate hike for the central bank this year.The BOJ last raised its benchmark policy rate to 1.0% from 0.75% in June.The central bank said Japan's economy is recovering moderately, although some weakness remains due geopolitical uncertainties acting as risks to the outlook.The economy is expected to continue growing moderately, driven by rising global AI-related demand and various government measures, the BOJ said.Rising crude oil prices and the depreciation of the yen have pushed medium- to long-term inflation expectations higher, bringing the underlying rate of consumer price inflation closer to the BOJ's 2% target.

Nikkei 225
International

Korea's Auto Exports Plunge in August on Fewer Working Days, Strikes

Korea's automobile exports fell nearly 30% year over year to $3.85 billion in August, hit by fewer working days from the summer holiday shift and strike-related production disruptions, according to the Ministry of Trade, Industry and Resources (MOTIR).Declines were recorded across all major markets, with North America down over 28%, the EU falling nearly 17%, Asia tumbling 42%, and the Middle East slid 24%, while export volume dropped 27% to 146,000 units.Domestic sales and production fell 21% and 36%, respectively, to 110,000 and 206,000 units, though eco-friendly vehicle sales reached 69,000 units, or 63% of the domestic market.With wage negotiations now concluded at all major automakers, the ministry expects the shortfall to be made up and exports and production to gradually recover.

KOSPI
International

South Korea Extends Fuel Tax Cuts Through November to Ease Public Burden

South Korea will extend its fuel tax cut scheme by another two months through November to ease price burdens on the public amid protracted tensions in the Middle East, according to the Ministry of Finance and Economy statement on Thursday.The ministry said the decision was made during an economy-related ministers' meeting chaired by Finance Minister Koo Yun-cheol, taking into careful consideration the recent international oil price situation and the burden on the public.The current reductions, including 15% for gasoline and 25% for diesel and butane, were scheduled to end in September, and the 10th oil peak price to be applied will be announced at 6 p.m. on Thursday.During the Chuseok holiday period from Sept. 24 to 27, highway gas station fuel prices will be lowered by 100 won per litre compared to Sept. 17, with electric vehicle charging fees discounted during daytime hours.

KOSPI