US Industrial Production Unexpectedly Plunged In February, Auto Manufacturing Crashed

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by Tyler Durden
Tuesday, Mar 16, 2021 - 09:25 AM

US Industrial Production was expected to rise (+0.3% MoM) for the 9th month of the last 10 in February (the last 'clean' pre-COVID print before last March's collapse, which will spark YoY comp chaos). But, instead, industrial production tumbled 2.2% MoM - the biggest plunge since April 2020. That pushed the YoY drop in production down to 4.25%...

Source: Bloomberg

We assume there are weather-related factors driving this weakness - but did analysts not know that Texas suffered from a massive crisis?

  • Utilities rose 7.4% in Feb. after falling 0.6% in Jan.

  • Mining fell 5.4% in Feb. after rising 2.1% in Jan.

The biggest drops however were in motor vehicle production, which crashed in Feb...

Source: Bloomberg

Manufacturing was even worse, plunging 3.1% MoM (versus expectations of a 0.2% rise).

Source: Bloomberg

Capacity Utilization plunged

Source: Bloomberg

And finally, stonks don't care...

Source: Bloomberg

Luckily a few trillion dollars of excess should bring that back up soon enough as America's potemkin economy goes from 'strength' to 'strength'.