Industrial Production Crashes Most Since 2009, Weather Blamed

For the third month in a row US Industrial Production dropped MoM, crashing 0.6% in November (against expectations of a mere 0.2% drop). This is the 9th month of 2015 with no MoM increase in industrial production and is the biggest MoM drop since March 2012. However, for the first time since Dec 2009, Industrial Production fell YoY (down 1.2%) signalling America is deep in recession. The excuse blame is "unusually warm weather" which sent the utilities index down 4.3% as demand for heating tumbled.

Ironically, capacity utilization fell to 77.0% (against exp of77.4%, down from 77.5%), its lowest since January 2014, when it was blamed on cold winter.

Recession? Transitory collapse in Industrial Production...

In 35 years there has not been a drop in IP without a recession. In all US history only '34, '52, and '56 saw such declines with no recession.

So if the wealther was to blame for November, what was to blame for January, February, March, April, May, June, September, and October?

Or could it be unequivocallyu good low oil prices? Oil & Gas Well Drilling Output is the lowest this century...

Charts: Bloomberg

Comments

[yogibear]

LOL, almost always the weather when it fails.

So far weather has been warmer, so people want to go out and see the stores.

The market BS is getting deep, need the boots.

[Tom Servo]

Guess weather was off the hook in July and August...

[VinceFostersGhost]

The weather has been great here in flyover and industrial production country....so no, it can't be that.

[duo]

1934, back when we were in the middle of a Depression, like we are now.

[TheBeatles]

EurGold are selling all of their 1oz silver coins for just €12!

These include:

1oz Silver Vienna Philharmonic 2015.

1oz Silver American Eagle 2015.

1oz Silver Canadian Maple Leaf 2015.

1oz Silver Perth Mint Kookaburra 2015.

https://www.eurgold.de/silver/silver-coins/

Silver 1oz Vienna Philharmonic 2015 Master Box (500pcs) - €7,859.69.

https://www.eurgold.de/silver/silver-coins/500-x-1oz-silver-vienna-philharmonic-2015-master-box/

Silver 1oz American Eagle 2015 Master Box (500pcs) - €7,949.17.

https://www.eurgold.de/silver/silver-coins/500-x-1oz-silver-american-eagle-2015-master-box/

Silver 1oz Canadian Maple Leaf 2015 Master Box (500pcs) - €7,775.52.

https://www.eurgold.de/silver/silver-coins/500-x-1oz-silver-canadian-maple-leaf-2015-master-box/

All major credit cards accepted. Sale ends 31st December 2015.

[SillySalesmanQu...]

Let me tell you how it will be
Just one of you and many of me
We're the Trollmen
Yeah, the Trollmen

[MSimon]

500 X 12 = 6,000.

7,949.17/12 = 15.89834

[slaughterer]

I am too tired to look.  Did the market go up on this?  

[VinceFostersGhost]

+132.15

Yup.....sure as hell did.

[1234567]

Ban Weather!!!!

[knukles]

Glad that shit's out of the way and we can get back to telling everybody It's all Wonderful!

[slaughterer]

Isn't the USA fully post-industrial anyhow since Slick Willie?  What do these numbers matter?  All USA produces is bad entertainment and financial fraud.  

[The Once-ler]

   
      …  you forgot fraud entertainment
             and bad financials.
  

[bamawatson]

... and lots n lots n lots of knee grows

[sun tzu]

They have more excuses than the global warming cult

[Bill of Rights]

Everything is awesome for a rate hike...

http://4.bp.blogspot.com/_azimCSzqNnc/TDzkxPIZWKI/AAAAAAAAFwQ/rFyrjynJxy...

[shovelhead]

Whew.

I was getting worried for a while that everyone was going to give up on that whole AGW thing.

[ptoemmes]

How many computer bits did Janet manufacture?

[tc06rtw]

   
      ALL of them.
  

[madcows]

Since the Great Recession began, the FED has expanded their balance sheet from about 850 billion to 4.4 trillion... or by about $3.55 trillion.

Now, being that they are all digital integer dollars, and each integer requires about 2 bytes (or 16 bits) of memory...

we have 3.55 trillion integer dollars at a cost of 16 bits each.... for a sum total of 56.8 trillion bits.

[MSimon]

64 bits will be required to get the sums right.

[Lorca's Novena]

OMG they actually did it, as I was musing just the other day  http://www.zerohedge.com/news/2015-12-15/empire-manufacturing-contracts-...

[PutinLover]

The recovery is here, idiots. Stop living in denial - you're only impoverishing your own family.

[silverer]

A brilliant yes and no statement.  But it's hurting too much to laugh, lately.

[buzzsaw99]

a transitory conundrum

[Grandad Grumps]

Just as raw material inflation and labor arbitrage are not really positives for an economy (even though they are promoted as such), dollar based declines in production are meaningless, except for the financial implications.

Tell me about unit sales and margin. Ours are very good and we are a US based manufactuing company. I do know others however, that have been stuck with very high inventory costs that they must write down to sell product.

Financial implications.

[silverer]

We could call this the "Goldilocks economy":  It's too hot, it's too cold, it's just right.  Problem is, it's never "just right".  So we need to call it something else, like the "Neverland economy".

[tc06rtw]

   
 …  Wasn’t Goldilocks devoured by bears?
  

[Buster Cherry]

Sort of like the world being black and white before 1964, there were no weather events until 2011.

[madcows]

so it looks like we have to get another -3.8 to -13.8 for shit to get real

[orangegeek]

this should unfold nicely as yellen nudges rates up at 200p