After the shocking surprise plunge in January (led by a big slide in manufacturing output), US Industrial Production was expected to rebound in February.

And while the headline Industrial Production data did rebound, it was much lower than expected (+0.1% MoM vs +0.4% exp)...

However, U.S. factory production slumped for a second month in February, missing forecasts for a pickup, indicating headwinds from the trade war to slower global growth are weighing on manufacturers.

As Bloomberg notes, the results indicate headwinds for manufacturing persist as producers confront uncertainty from trade policy and dimmer projections for major economies from China to Europe. Economists project the U.S. economy will slow in each quarter this year.

The data echo other downbeat reports on the sector. The Institute for Supply Management’s gauge of U.S. factories fell to a two-year low in February in a broad decline across orders, employment, production and deliveries. A separate report earlier Friday showed the New York Fed’s measure of general business conditions fell to the lowest since May 2017.

This is the weakest manufacturing print since July and has sparked a bid for bonds as the growth rebound narrative suffers another blow...