US Industrial Production Surges In December To Record High

Industrial Production surged 0.9% MoM in December (almost double the 0.5% rise expected) and pushed the overall level above its Nov 2014 peak to a new record high.

https://www.zerohedge.com/sites/default/files/inline-images/20180117_IP1.png

The December beat was helped by a notable downward revision for Nov (from +0.2% to -0.1% MoM)

https://www.zerohedge.com/sites/default/files/inline-images/20180117_IP2.png

And the biggest driver was a huge surge in Utilities... (so blame the weather!)

 

https://www.zerohedge.com/sites/default/files/inline-images/20180117_IP5.png

One thing to suck the jam out of the market's donut is that Manufacturing Output actually missed expectations - rising just 0.1% MoM (vs +0.3% MoM exp).

But worries about over-heating are starting to rise as Capacity Utilization hits a 3-year high.

https://www.zerohedge.com/sites/default/files/inline-images/20180117_IP4.png

Since the previous peak in US Industrial Production on November 2014, The Dow is up 46% and Industrial production is unchanged...

https://www.zerohedge.com/sites/default/files/inline-images/20180117_IP3.png

Comments

Okienomics directaction Wed, 01/17/2018 - 10:08 Permalink

The USA has substantial industry; some of them are my clients.  I can affirm that production is indeed up at aluminum fabrication, corrugated paper, plastics extrusion and rebar production facilities.  The recent decline in the dollar does NOT spell the end of days, we could use more of it for domestic manufacturing.  Further, the jump in utility production is no joke.  This cold weather has caused spot prices for both natural gas and electricity to surge in several regional markets.  When the industrial production numbers for January come out it will be interesting to see just how much utility production shoots up from December.

In reply to by directaction

Endgame Napoleon Wed, 01/17/2018 - 09:37 Permalink

We should be seeing higher tax revenues coming in from all these full-time, on-shore employees then, right? The US has seen lower tax revenues during successive, [neoliberal] administrations, bragging about job creation, with their PR wings in the corporate-owned media and the Bureau of Labor ignoring the massively underemployed or out-of-the-workforce citizenry. A welfare and / child-tax-credit or spousal-income-boosted, part-time workforce of discriminatory and back-watching absentee mom gangs is at full employment only in the minds of those who cash in on the status quo. If these are full-time factory workers, churning out more products, it is good. We’ll see if that is the case, but if it isn’t, it will not be reported. Only what is good for the global stock prices of the affluent will be reported.

Blue Dog Wed, 01/17/2018 - 14:36 Permalink

More fake statistics. We're supposed to believe industrial production is at an all time high despite losing a million manufacturing jobs after NAFA?

The car companies are still engaging in channel stuffing. They don't make cars like they used to. They assemble them from foreign made parts. The car companies' overproduction will crash soon. 

 

allthegoodname… Thu, 01/18/2018 - 16:47 Permalink

No, I am not buying it, what are we making anyway?  The surge is in low paying jobs, the kind of jobs that it takes two or three of them to make a living, a very meager living, yeah, we, like the Chinese are surging, not as much as the Chinese, but wages, we are competitive with the Chinese now, right?  When "Americans" stop believing the crap coming out of the United States Company's 1871 Government, the Politicians and Judges in Washington D.C., and start believing their own eyes, then like looking at the Flat Earth, people can know the truth and live accordingly, think, outside of the box, know what is real and what is not.

Homelessness, poverty, failures of Home loans, Car loans, Student loans, credit cards maxed out, living from pay check to pay check, children going hungry, no hope for the future, all the talk about AI and the Stock Market...damn, people, I guess when the people get so dumbed down, so insane as to think they can live forever in heaven with some guy named Jesus and his Jew pals, then, anything is possible, even an Industrial boom in the midst of child hunger and increasing homelessness.

Mr. Trump, is the player, Mr., well not Mr., Lord Rothschild, and his Jewish Banker friends calling the shots, life can be what they want, the whole we, the people, thingy, the Representation, in on it it, worrying about nothing, their children eating the best food, drinking the pure water, covered from head to toe in health care and a new car, the mansions of the Kings boys and girls, awesome to look at, the one exceeding the other until the one builds a higher, bigger one.  Meanwhile we are being attacked constantly as racist, as murderers, as people who made it off the bloody corpse of the victims.  When in truth we were never responsible for the death of Indians, Buffalo's, Slavery, or the wars yesterday or today, all we ever done was go to work go to church, get more brainwashing and hope there is a god willing to forgive us for being such horrible people.