US Industrial production has missed expectations for 4 of the last 5 months (not seen outside recession) and has not seen notable MoM gains for 6 months in a row (not seen outside recession). Against expectations of a 0.3% gain, IP dropped 0.2% in May (not what the meteorconomists were hoping for). Without the over-stocking of motor vehicles, the number would have been a total disaster as Autos rose 1.&% MoM (the only industry to gain) but the 7.9% plunge in drilling/servicing at oil/gas wells is "unequivocally bad." At 1.37% YoY growth, this is the weakest industrial production since January 2010. Minor upward revisions stalled the MoM drop streak but US factory output has now fallen YoY 6 months in a row (not seen outside recession) for the biggest drop in over 4 years.
MoM it's ugly...
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But YoY is flashing recessionary red!
[4]
“The global economic situation is not ideal,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut, said before the report.
Charts: Bloomberg
