US Industrial Production: Manufacturing under pressure - Wells Fargo
|Data released today showed that Industrial Production in January dropped 0.6% unexpectedly. Analysts at Wells Fargo explained that not only did industrial production declined, the already modest 0.3% gain in December. They added that in both months, the weakness was in manufacturing
Key quotes:
“Manufacturing production fell 0.9% in January amid an 8.8% drop-off in motor vehicles. Broad declines were also evident in other categories.”
“Silver linings are tough to find in this report, although a separately-reported increase this morning in the NY Fed’s Empire Index for February offers hope for a near-term rebound.”
“With January temperatures close to normal, utilities production was up just 0.4% in January. The polar vortex rolled in at the very end of the month, but mostly occurred in February suggesting this category could be a big factor in next month’s report.”
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