The headlines say seasonally adjusted Industrial Production (IP) was up. The manufacturing segment of industrial production improved.
Analyst Opinion of Industrial Production
The market expected improvement this month in industrial production. Our analysis shows this month was significantly weaker than last month BUT the best way to view this is the 3 month rolling averages which was unchanged and remains in expansion.
HOWEVER, there was significant downward revision in the data – and your view of this months data depends on where you thought we were.
Manufacturing employment growth remains flat year-over-year..
IP headline index has three parts – manufacturing, mining and utilities – manufacturing was up 0.2 % this month (up 1.2 % year-over-year), mining up 1.6 % (up 9.9 % year-over-year), and utilities were down 2.2 % (down 2.2 % year-over-year). Note that utilities are 10.8 % of the industrial production index, whilst mining also is 10.8 %.
Comparing Seasonally Adjusted Year-over-Year Change of the Industrial Production Index (blue line) with Components Manufacturing (red line), Utilities (green line), and Mining (orange line)