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US DATA: IP Miss And Downward Revisions Take Gloss Off Recent Recovery

US DATA
  • Industrial production fell by more than expected in July, at -0.64% M/M (cons -0.3) along with a downward revised 0.3% (initial 0.6) in June and 0.8% (initial 0.9) in May. 
  • The July miss was placated a bit by the manufacturing component coming in as expected at -0.29% M/M (cons -0.3) although it also saw solid downward revisions to 0.0% (initial 0.4) in June. 
  • The additional monthly drag was driven by utilities, at -3.7% M/M after a 2.6% increase in June. 
  • The latest outturns and downward revisions have left a less rosy near-term trend, with total industrial production rising 2.6% annualized on a 3m/3m basis and manufacturing production 1.7% annualized. 
  • Those are still commendable considering an ISM manufacturing reading of 46.8 in July (and new orders 47.4) although core durable goods slowing to -0.2% annualized on the same basis suggests a headwind for upcoming production. 

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