After an unexpected decline in December, Industrial Production was expected to rebound in January and it did, rising 1.4% MoM (almost triple the 0.5% MoM rise expected).
The headline beat in Industrial Production was due almost entirely to the cold winter as the increase of 9.9 percent in the output of utilities in January was the largest in the history of the index (since 1972) and reflected strength for both electric utilities and natural gas utilities.
The index for mining rose 1.0 percent. Oil and gas well drilling advanced 6.2 percent; the index in January was nearly 50 percent above its year-earlier level but still about 14 percent below its pre-pandemic reading.
However, on the manufacturing side, growth was relatively flat, rising just 0.2% MoM...
Finally, Capacity Utilization is back above pre-COVID-Lockdown levels...
So, let's just hope that it remains frigid for the rest of the quarter!!
Today's strong economic data brought to you by i) seasonal adjustments, ii) anti-ESG and iii) freezing January