US Industrial Production Data Dashes 'Survey-Driven' Hopes Of Manufacturing Renaissance

Following August's storm-driven collapse in Industrial Production (-0.9%, worst since May'09), September was due for a bounce back and it did but only meeting expectations with a 0.3% rise on a surge in Utilities. However, aggregate industrial production for US remains 2% below its 2014 peak...

Manufacturing Surveys have all been soaring heading into today's IP print...

 

But, while August's tumble was revised slightly better to a 0.7% drop, September's print was only 'as expected'...

 

Driven by a surge in Utilities...

  • Utilities rose 1.5% in Sept. after falling 4.9% in Aug.
  • Mining rose 0.4% in Sept. after falling 0.2% in Aug.
  • Harvey, Irma combined effect trimmed industrial production growth by 0.25 percentage point in Sept., Fed said

 

Finally - for good measure - 'Industrial' Production remains well below 2014 highs... but the 'Industrial' Average is soaring...

 

Just remember, perception is not reality...

Comments

LawsofPhysics Tue, 10/17/2017 - 10:49 Permalink

Manufacturing real products requires REAL WORK, real RISK and real INPUTS/RESOURCES!!!!You know, all the things that bankers and financiers CANNOT PRINT out of thin air!!!!< yawn >"Full Faith and Credit"

MuffDiver69 Tue, 10/17/2017 - 11:03 Permalink

Two hurricanes hitting two states that drive GDP is why using historical data without context is ludicrous. These were massive events that will take a few years to shake out and commenting on surveys in that environment is a joke worthy of a laugh..