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Jim O'Sullivan, Chief U.S.............>

US DATA REACT
US DATA REACT: Jim O'Sullivan, Chief U.S. Economist at HFE on IP drop of -.1%
for Jan, saw a "slow start to Q1, including for manufacturing. Manufacturing
began Q1 up at just a 0.6% annual rate from the Q4 average, following a 6.3%
rate of increase in Q4" which O'Sullivan said was "exaggerated by a reversal of
hurricane-related weakness. The data are running weaker than suggested by the
surveys." Meanwhile, "the first two regional manufacturing surveys for Feb
showed continued strength this morning."

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