US: Expect flat reading for industrial production – BMO CM
|According to the analysts at BMO Capital Markets, in February, lower utilities output will probably fully offset rebounding manufacturing production along with oil-led gains in mining output, resulting in a flat reading for overall industrial production of US.
Key Quotes
“Last month was the second warmest February in 96 years of data (1954 was first) pulling down energy usage for heating (direct figures on the latter only began in 1997 but verify February’s extreme).”
“Meanwhile, factory output continues to recover from its summer lull reflecting three factors. First, exporters and domestic firms competing against imports have had time to adjust to a strong U.S. dollar as the pace of appreciation has slowed. Second, firmer oil prices are lifting domestic crude oil production and the demand for related manufactured items. Third, after contracting for more than a year, investment in machinery is rebounding, aided by the post-election surge in business confidence.”
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