Industrial production continues to show negative growth. This was perhaps the most important release of a busy week. It was atleast the one that had the greatest effect on GDPNow (unfortunately to the downside).

Freepik

This month is much about the auto industry. There have been some headlines about Americans broadly shunning EV’s and inventory building on parking lots. The reasoning is that they are more expensive and less green than you standard combustion engine vehicle. But, I think this is more about strikes. Idle plants is not good for production. This looks to be behind us, so expect this to improve.

Furniture and Machinery have been weak for close to a year. But you can see the recent fall in Motor Vehicles and Parts here.

The best part of the release is the level of crude processing which is the first stage of production. Yes we are onshoring, but the continued/additional strength in this series is a very good sign more broadly.

More By This Author:

Macro: Unemployment Claims — Uptick In Current Initial And Continuing Claims V 4-Week Average
Macro: Retail Sales
Macro: Markets — Banks Exit Overnight Trade And Extend Duration