Thanks to some considerable negative downward revisions, Industrial Production In July rose 0.6% (double expectations of a 0.3% rise) - the biggest MoM rise since November. However, year-over-year IP growth is flat at 1.3% - hovering at its weakest since the last recession. We previously noted the surge in auto inventories-to-sales (Motor Vehicle IP rose 10.6% MoM), which likely spurred this false dawn in IP, however, it is the rise in oil drilling - the first time since September - that raises an eyebrow as entirely unsustainable amid collapsing prices.
Thanks to the revisions, July looks awesome...
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Thanks to the panic surge in Auto industrial production...
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But YoY growth is flat at its weakest since the recession...
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Of course, economists are rapidly extrapolating thisgrowth to support Fed rate hikes... missing the outlier-ness. We await next month's downward revisions.
Charts: Bloomberg
