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Hard Manufacturing Data Begin To Better Reflect Weak Surveys

US DATA
  • Industrial production adds to today’s string of softer than expected data after PPI and retail sales, falling -0.7% M/M (cons -0.1%) after a downward revised -0.6% M/M (initial -0.2).
  • The decline was the largest since Sep’21 and before that Feb’21, with an even larger -1.3% for manufacturing after -1.1% M/M.
  • The latest declines tie in nicely with the ISM manufacturing falling into negative territory in Nov and Dec, most recently at 48.4 with new orders of 45.2 in Dec at the lowest since Mar-May’20.
  • Capacity utilisation meanwhile surprisingly fell to 78.8% (cons 79.5) from a downward revised 79.4%, touching its lowest level since Dec’21.

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