US Industrial Production Plunges As March Auto Manufacturing Tumbles Most Since 2008

Tyler Durden's picture

The US economy has never - ever - seen Industrial Production drop YoY for seven months in a row without being in a recession. Down 2.0% YoY in March, the weakest since December and down 0.6% MoM (weakest since Feb 2015) the decline in factory output is driven a 1.6% plunge in vehicle production (2.8% collapse in motor vehicles specifcally) in March. This 1.76% drop is the worst for a March since 2008.

 

 

As The Fed details,

Manufacturing output decreased 0.3 percent in March. The production of durables moved down 0.4 percent. The largest declines, about 1 1/2 percent, were registered both by motor vehicles and parts and by electrical equipment, appliances, and components. Several industries posted increases, with the largest, nearly 1 percent, for computer and electronic products. After increasing 0.9 percent in January and decreasing 0.5 percent in February, the output of nondurable manufacturing edged down in March, as gains in the production of petroleum and coal products and of chemicals nearly offset declines for most other industries. The output of other manufacturing (publishing and logging) fell almost 1 percent. 

It really should be no surprise that Auto production is hitting the wall, as we have been discussing, inventories are extreme...price and sales weakness is occurring amid a mal-investment-driven excess inventory-to-sales at levels only seen once before in 24 years...

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venturen's picture

What did Kim K wear today....nothing to see here

FreeShitter's picture

She wore nothing and liked it.

StackShinyStuff's picture

Say it with me folks:  SINCE LEHMAN

pods's picture

Easy to solve. Force "folks" to buy a new car every two years or fine them the price of one.

It's legal in the land of bananas.

pods

Janet Shalom Bernanke's picture

and call it "The Affordable Car Act"

edotabin's picture

lol and it will pass as a "tax"

kev the bev's picture

Perhaps start up a new militia group in the middle east and supply them with pick up trucks.

pods's picture

Don't suggest anything else to them, please.  And let's hope "Joe the Plumber's" truck was a one off.

pods

The Merovingian's picture

They will call it Obamacar!

dabronx199's picture

move on nothing to see here, it all in the rear view mirror!!! the economany is just fine

DogeCoin's picture

The economy is fine. We're in the Great Recovery and Obama is not a Nigerian prince who's peddling fiction.

Rainman's picture

Shocking news ( not )...subprime auto loan delinquencies hit a 20 year high.

                 http://money.cnn.com/2016/03/15/investing/subprime-unpaid-auto-loans-oil-crash/

venturen's picture

You mean there are people paying loans back...why? Did you see the wsj article about the guy in Denmark getting paid to take out a mortgage? http://www.wsj.com/articles/the-upside-down-world-of-negative-interest-r...

RadioFlyer's picture
RadioFlyer (not verified) Apr 15, 2016 9:35 AM

A chicken in every pot. And a car in every backyard, to boot.

PirateOfBaltimore's picture

Surprise!  The S&P is fucking green.

E.F. Mutton's picture

"...and lo, the Hebrew Queen went forth and did proclaim that none shall be red, and the shekels did multiply of themselves, and the markets rejoiced"

- Book of Fed, Chapter IV, verse 29

 

E.F. Mutton's picture

Is there a Repo Man ETF?  I'm going long if so.

csmith's picture

No repo man needed any more. Car knows it's been repoed, and drives itself to a giant field in Kansas with 60 million other orphans. Then a drone drops a nuke on the whole lot - latest version of cash for clunkers.

Food Loaf Junkie's picture

Count down to cash for clunkers II in 3-2-1

kev the bev's picture

New cars for Clunkers?

 

silverer's picture

I'd prefer new arms for bunkers.

Kolchak's picture

Imagine what the real numbers are before the parking lot stuffing commences.

Grandad Grumps's picture

April is turning out to be a good month in electronics manufacturing.

What surprises me is that labor and employment is holding up (is it really?). Everwhere I go there are fewer people and more machines employed to do jobs that previously were done solely by people.

bada boom's picture

AP: Automakers Rally on Inventory to Sales Numbers

(AP = All Phony)

Infield_Fly's picture
Infield_Fly (not verified) Apr 15, 2016 9:44 AM

I'm still waiting for ATH's and negative GDP.

 

Let's see if that fucking cunt barry can do it.  uncle yellen knows how to push the buttons.

skbull44's picture

One has to wonder if the-powers-that-be will EVER actually allow the 'recognition' of a recession again because in the land of 1984 contracting growth is a recovery!

http://olduvai.ca

silverer's picture

Who in their right mind it going to run out and pay $40,000 for a car if they have little more to retire on than Social Security? When this thing goes over the cliff, it's going down hard and loud.

cowdiddly's picture

15% off mfg sticker price and 1200 dollars cash back on all remaining 2014 inventory. Hurry while supply last.

starman's picture

Hello 2008 goodbye 2016! Wait what?!

quadraspleen's picture

 

 

c'mon, it's only a little bit red..you fiction peddlers, you..

Anyone want to buy a 3yo car?

csmith's picture

You're totally off base. The economy is just fine when the Fed simply prints money and the government spends it.

poor fella's picture

Oh shit! The Fed better have an emergency meeting to address this new issue.

MopWater's picture

Wife wants a new car...of course she wants it "new new" instead of saving on depreciation by getting it a few years used...if they drop prices like they did in 08 I may consider it...not before.

MrRadiologist's picture

Jesus fucking christ, what a shitshow.

PPT Inc.'s picture
PPT Inc. (not verified) Apr 15, 2016 12:29 PM

Bloomberg's script is to blame on "strong dollar" and "global concerns" despite the fact Manuf Output was essentially flat ex-Autos, meaning the weakness is a domestic issue since we don't export cars.

Trump was right about the US being in a recession. The lying Jews at Bloomberg lied, again, in ridiculing him.

hcho3's picture

This is all China's fault.

Stu Elsample's picture

I'll wait until after Novemeber to make a decision on buying a new car. If Trump wins, i'll buy one...If Hillary wins, I'll buy more ammo instead.