This was a strong report, especially the manufacturing component, albeit with negative revisions. 
The Federal Reserve posts Industrial Production and Capacity Utilization numbers for February.
Industrial production (IP) increased 0.7 percent in February after moving up 0.3 percent in January. Manufacturing output rose 0.9 percent, boosted by a jump of 8.5 percent in the index for motor vehicles and parts. The output of manufacturing excluding motor vehicles and parts increased 0.4 percent. The index for mining gained 2.8 percent, and the index for utilities decreased 2.5 percent. At 104.2 percent of its 2017 average, total IP in February was 1.4 percent above its year-earlier level. Capacity utilization stepped up to 78.2 percent, a rate that is 1.4 percentage points below its long-run (1972–2024) average.
Industrial Production Month-Over-Month Details
- IP: +0.7 Percent
- Manufacturing: +0.9 Percent
- Motor Vehicles and Parts: +8.5 Percent
- Utilities: -2.5 Percent
- Consumer Durable Goods: +4.3 Percent
Industrial Production
Manufacturing is well below the peak set at the start of the Great Recession in January of 2008.
Industrial Production Detail
I asked Brad Setser, senior Council on Foreign Relations (CFR) fellow, if any of this is tariff related. I will post the answer when I get a reply.
Motor Vehicles are very jumpy so perhaps it’s just noise.
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Retail sales had another poor month in February. It’s very recession looking.
Motor Vehicle sales are recorded when they are shipped to the dealer, not when a consumer actually buys them. This makes analysis of sales more difficult.
Related to recession, factor in tariffs, trade disruptions, DOGE firings, an abrupt halt to immigration and immigration-related spending, and massive business uncertainty about everything Trump does.
Motor vehicles production are testing Aug 2024 high. After Aug 5 low the uptrend resumed. Trump’s tariffs didn’t clogged production. Debt can. Detroit isn’t predicting recession any time soon. It was a cold winter. Utility should be up. not down.
Googl bought the Wiz for $32B, its biggest Assaf Rappoport 41 will run the cyber division.
Auto production/parts up with no buyers.
Sounds like a bridge to nowhere to me.
My daughter is looking to buy a car this year. By early summer, desperation at car dealers will set in.
She should buy a Tesla.
Only if you want the highest insurance rates for your car.
https://insideevs.com/news/753730/tesla-insurance-vandalism-elon-musk/
There is a Tesla dealership burning in Las Vegas right now. Those cars are so nazi-hot they burn red hot.
That was arson. So, you’re in favor of that?
How do you infer I endorse arson from pointing out insurance rates are skyrocketing for Tesla owners because of vandalism, deliberate crashes and yes arson.
You have to be a real idiot to be driving around in a Tesla right now. It’s like rolling the dice and expecting a vandalized car, a crashed/burned car or a shot at Tesla owner.
I’m glad I don’t have a car but if I did, it wouldn’t be a Tesla.
You made reference to the Dealership fire in Las Vegas and further noted some stupid Nazi bullshit. The Nazis are the ones setting fires to these cars that Americans built. The left it’s starting to look a lot like the Nazis.
And just like that, government statistics were suddenly accurate and truthful according to the trumpers here.
The Make Biden Look Good spin is certainly gone.
When Trump is done in 4 years (or less), Biden will look like an economic genius.
… Likely increased production activity in business anticipation of tariffs which will result in excess inventory in warehouses during the recession. How many of our high profile manufacturing contracts (e.g., F-35’s) will go to to Europe as a result of our economic diplomacy?
The way things are going…..none.
Trump depleted inventory on the Hooties. Bibi on Jaza.
Real Final Sales on GDPNow -0.4 percent up from -0.7 after this report
Credit spreads still quite tight. The stock market isn’t the economy but the bond market usually can tell you when to worry. And they ain’t worried yet.
Senator Rick Scott of Florida proposed an all-out assault on Iran’s economy and country, intimating that the US should start a war in the Middle East. Trump wants a war sooo bad that whether he wins it or not its all about a ‘triumph” parade Regarding that triumph Mr Trump https://youtu.be/uPiH-LBna5I?si=RYm11bXDK6W3cyXP
Trump has proven to everyone except morons that he doesn’t want war. War was Biden’s (or whomever was acting in place of Biden)
game.
Better to be paying attention to what is going on in that part of world then spouting a whole lot of progressive nonsense.
Houthis threatening to once again attack merchant vessels.
Already launched attacks against US aircraft carrier. US response was to sink Iranian spy vessel and assassinate some of Iran’s people advising Houthis whom got caught when US launched against Houthis leaders.
In addition to which Israel just killed another 400 in Gaza.
as the IP # for auto parts gets booked regardless of final sales I’d bet your farm (why involve mine?!) this is tariff front running. (To the extent manufacturers can.)
What happened to all of the recession talk?
Still on
Commercial bank credit, all banks, is up, so then are loans/investments = deposits.
The FOMC’s proviso “bank credit proxy” used to be included in the FOMC’s directive during the period Sept 66 – Sept 69.
A wow statistic. Green shoots abound. Haters silenced forever.
Are you drinking again?
Just positive Mike. The only way to be
I prefer realism wherever that leads.
A record, as in ever, in industrial production is a real number. So it was a great stat. Realism
Interesting cherry-picking.
I don’t remember you making similar assertions during Biden’s historically high and consistent IP numbers for the last three years
But I try not to be too political myself; I’m glad (for those workers) IP was high this past month
Not really. With the crazy overreaction to each and every econ statistic, you would’ve thought this number would not be strong at all. I’m glad you are glad.