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Industrial Production Plunges, Fed Blames Weather
Despite Utilities soaring 4.1%, the Federal Reserve "blames" the worst miss (and biggest drop) in Industrial Production since August 2012 on "severe weather" in some regions of the country. Capacity Utilization also tumbled - to its lowest since October. Numbers for November and December's exuberance were revised lower in both series (that must be the weather effect being anticipated that weather would be bad in January!?!). There were 6 mentions of the word 'weather' in the report (just missing out of Deutsche's Lavorgna with 8 yeaterday) as any weakness in macro data is due to unforeseeable events (weather in Winter) but any surprising beat is due to solid fundamentals underlying the real economy.
Of course the plunge in Industrial Production would have nothing to do with the near-record levels of inventories in channel-stuffed over-laden mal-invested auto makers?...
From The Fed,
Industrial production decreased 0.3 percent in January after having risen 0.3 percent in December. In January, manufacturing output fell 0.8 percent, partly because of the severe weather that curtailed production in some regions of the country
...
The severe weather in January contributed to a decrease of 0.8 percent for manufacturing production. Output had risen in each of the previous five months, though the rates of increase for October through December are now reported to be slower than previously stated: Steel, semiconductors, motor vehicles, and organic chemicals made the largest contributions to the downward revision for the fourth quarter. The level of factory output in January was 1.3 percent above its year-earlier level.
Capacity utilization for manufacturing moved down 0.7 percentage point in January to 76.0 percent, a rate 2.7 percentage points below its long-run average.
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What happened to Bushes fault. He's letting a good crisis go to waste here.
No worries, this is a jobless and productionless recovery.
Middle class destroyed and together with the poor no longer counted. Problem solved.
THEY must want that number otherwise it would be a different number
Get ready for an unseasonably hot summer. So hot that people won't be able to leave their homes to spend money.
Hold off buying any big (or medium) ticket items. Deflation coming to a store near you.
WTF! I'd like to see some charts going back to the 1950's showing industrial production dropping due to winter weather!!
What a bunch of fucking weenies the US has become!
No wonder China thinks they'll kick our ass
Physical hand to hand combat is over. China will kick our asses, though it will be by controlling out technology. The ZH lust for killing the masses that are after their gold and canned goods probably won't come to pass in our lifetime, it's a long process.
You guys are funny.
China is already the biggest economy in the world. This fact is just hidden by the Yuan peg.
If the Yuan was allowed to float to it's true value China would have a bigger economy than USA. Easily.
Of course it has the biggest economy, though your point would lose some predictive value because if the currency appreciated, there's no way they could afford comparable wages to USA. They have 150 people digging a ditch with picks and shovels, we use two people and a back hoe. I don't think China could support pay workers four dollars more per day, a lot of the shit they produce is sold on volume and the fact that you have to replace it every three weeks because the build quality is so poor. I failed to mention the corruption which is a whole different variable to consider. China, at best, would have a moderate rise and then complete collapse. The deal they made is to be the new slave society, that's all they can be.
They have 150 people digging a ditch with picks and shovels. The shit they produce is sold on volume and the fact that you have to replace it every three weeks because the build quality is so poor.
I thought the Chinese made iPhones.
Some of their bearings are just fine too.
I just put Chinese axles on my wife's Subaru. My fingers are crossed.
Chinese axles = $70/per
Japanese (American?) axles = $400/per
Soooooo.... when you say your fingers are crossed because you put a cheap axle on your wife car, what are you hoping the outcome is? Hmmmmmmm? ;->
That the life insurance pays out...
Just "upgrade" to the Chinese brake pads next and you'll be a bachelor in no time.
I have time to swap axles on cars because I don't have a real job. My wife is my Catholic school teacher gravy train.
Your job today is axle swapper.
Tomorrow, it's kitchen cleaner.
Sunday will be laundry expert.
No shame in any of those jobs. Just because there's no income in them, doesn't mean those are meaningless jobs.
Keep fighting the good fight Rex
Thanks.
I really do appreciate it.
+1 karma for you.
It might be different now, but back when they were building ghost towns and Olympic structures, they used manual labor for a lot of jobs that could have used more machinery. I remember seeing how they put pipe in the ground, people swinging picks and shoveling. Though it could be a dated reference
"I failed to mention the corruption which is a whole different variable to consider"
Have you been paying attention to what has been going on in the U.S.?
Yes but our corruption is more subtle, usually, when the IRS is not involved or the Pres.....WTF it's the same not way to sugar coat it.
Yeah.... the threat of martial law and tanks in the street is subtle.
Good point, though I think the scale of Chinese government corruption is a bit higher, politicians are cheap whores in the states. They'll sell out for $50 000 or less
Agree, all one has to do is go there and look around. I bet the barter economy in China exceeds ours.
Yes, and no one else could afford to buy their plastic crap. - "winning"
the economy = /s
Janets vibrator is giving that buy button a good whacking to keep this market up
What happened to, "unexpectedly"? The good old days when you could count on fedgov "unexpectedly". Oh well, now that North America has discovered Global Warming ..snow...and....cold.....in winter, why no telling what numbers we get. If the Communists Party of China was running fedgovstat, I can assure you things would be rosy. Obviously fedgovstat has been infiltrated with anti-Obama/Satoro wreckers, and must be purged! IRS audits for all and a NSA/ATF medadata search of social media and any purchases of ammunition, weapons, any online comments justifying a little 6 AM flash bang labradoodle killing raid. Yes "folks" the enemies of President Obama, his partners in corporate America and even of the GOP, LLc, are many. These maggots, feasting on the green shoots of progress must be shovled up and crushed between the iron fists of choom righteousness! Forward!
I remeber when I was a kid when school was closed due to the cold temperatures.
Yep...I NEVER happened...
You didn't live in Atlanta........with HITLER!
http://www.youtube.com/watch?v=LoujWceQyw8
Bullish it.
That's perfect, my new go-to phrase for the lies that promote bullish exuberance.
Go for it ! Plenty of opportunities.
Did they miss the inventory build when blaming the fuckin weather!!!!! Twats
Weather?? Better call that fat fucking pig Al Gore for a solution - and do it fast.
That fucking cunt Yellen can't fix it with printing - the cunt can make the markets fly higher and that's about it.
I hear william peter blatty is writing another Exorcist sequel and wants some dialogue for the possessed child. Care to offer any lines?
I hope Friedkin directs. I want to see another spider walk.
Does the public not see the blatant manipulation of 'reality' right in their faces? Sheesh, it's comical, yet sad.
Figures lie and liars figure.
This is the best video about today´s weather situation... http://www.bbc.co.uk/news/science-environment-26160761
Sitting here in Sweden in the middle of our "normal" winter, +4C and not a snowflake in sight....
If it's going to be cold, personally, I'd actually prefer that it snows.
global warming mein arse....
Now you've done it.
Flakmeister is going to have some terse words for you right after he gets done clearing his driveway with a hopium-powered snowblower.
Not wishing to be left out of this weather focused craze, I've started naming my own farts.
Yeah isn't that naming storms the stupidest thing. Well not it isn't but it is stupid. And when 2 named storms join then what the heck you call it Chang and Eng?
And then some dumb ass pseudo scientist comes out and says there were more named storms last year... Er, yeah, because you named more of them. I thnk I may be at breaking point. :)
Smellvin?
whoopsie,
squishy
whodunit
congress
Gas-ton
Since JAnuary we closed 3 times due to "weather" BUT had demand for product been high we would have worked OT to make it up hence production would not have dropped. Why can't the fools admit the economy SUCKS?
Cold weather makes gold and silver go up! Let's hope for an ice age.
Don't worry. It's coming. We are nearly 2000 years overdue for an ice age. The glaciers should obliterate crap holes like Chicago and many in commie Europe. Good bye holocene.
Does anyone believe what these idiots say anymore. Anyone?
This recovery is a lazy hippy bums dream come true.
Food stamps for everyone! My god how did we ever make anything before global warming (you know, when we had real winters)?
DOW down a whopping 919.
Wait, my bad, missed a decimal point, -9.19
Well keep buying because this summers going to be really hot and we'll probably have a lot of tornados this spring which is a major GDP producer. LMAO.
Krugman, get back to class!
The bull market is over. ZH threw in the towel last night with a Goldilocks article. I've been saying since QE infinity started that it was my sell. I love this site, the social and financial commentary is the best anywhere, but if you trade it your reading this in you're Mom's basement
Do you realize how ridiculous you sound? Zero Hedge has not made any market calls one way or another, and just because a contributor posts an article it doesn't mean the Tyler's endorse it. Zero Hedge does provide the information and point out the discrepancies between markets reaction and the fundamentals. They also point out the propaganda being fed to us. Most everybody here knows that the "market" has become a policy tool, and it has become very easy to make 'money'. The few trade recommendations they have made would have paid off handsomely if one had the fortitude and the know how to execute the trade. My guess is that you don't.
what's the purpose of this post? do fundamentals matter?
Wicked Winter weather is due to "Global Warming". Hot summers are due to "Global Warming". Tails I win heads you lose.
Beat up a statist, blame it on the weather...booyah!
couldn't be more bullish, the perfect red carpet for Janet, indices heading for the ATH
20-30 years of shipping jobs over seas, increasing regulation and taxes that suffocate business and now we wonder why the American consumer is flat ass broke... Yeah, it's the weather's fault.
is energy part of industrial production? My heating bills are off the charts and so are yours.