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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US DATA
Utilities were the culprit for the overall miss in January's US industrial production reading (flat growth vs +0.5% M/M expected, vs -1.0% prior revised from -0.7%).
- Indeed, manufacturing (+ 1.0% M/M) and mining (+2.0%) rebounded from two negative months in Nov and Dec.
- While manufacturing is still struggling overall (growing at approximately -6% 3M/3M annualized), utilities saw their biggest contraction ever at -9.9% M/M, dragging overall IP lower.
- The release explains this with "a swing from unseasonably cool weather in December to unseasonably warm weather in January depressed the demand for heating."
- And in contrast to manufacturing and mining, which saw capacity utilization move solidly higher, overall industrial utilization unexpectedly dipped - but that is because utilities utilization collapsed to an all-time low 68.6% vs 76.4% prior.
- Overall, manufacturing is still an area of concern, but one-off factors mean the weak headline industrial production figure is not necessarily a harbinger of economic stagnation.
US Utilities Production SASource: Federal Reserve, BBG, MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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