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.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
