US Industrial Production Suffers Worst Year Since 2015
After surging in November (by the most since Oct 2017), Industrial production was expected to contract modestly in December.
November’s big jump was revised lower and the headline production printed a 0.3% MoM contraction (worse than expected), leaving US industrial production down 1.01% YoY – the worst since Oct 2016.
Source: Bloomberg
That makes 7 of the 12 months with contraction in 2019 and ends up being the worst year since 2015.
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Utilities fell 5.6% in Dec. after rising 1% in Nov.
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Mining rose 1.3% in Dec. after falling 0.2% in Nov.
Capacity utilization fell to 77% from 77.4% in Nov., revised up from 77.3%.
Manufacturing actually surprised to the upside in December (rising 0.2% MoM vs -0.1% exp), but year-over-year saw a 1.3% contraction…
Source: Bloomberg
And of course, the Dow Jones INDUSTRIAL Average continues to soar despite INDUSTRIAL Production remaining relatively stagnant…
Source: Bloomberg
And that’s what The Fed is for.
Tyler Durden
Fri, 01/17/2020 – 09:22
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