by Mish

For example, the Econoday consensus estimate for the manufacturing component of industrial production was +0.2%. Today’s Industrial Production report shows manufacturing fell 0.4%.

Do economists not know about poor auto sales?

Overall, economists expected industrial production to be +0.2%. Instead, production was flat.

"Forget about all the strength in the low sample-sized regional reports. Government data are not pointing to strength at all as manufacturing readings in the May industrial production report are a matter of concern.

Industrial production could manage no better than an unchanged reading in May while the manufacturing component fell 0.4 percent. Both are lower than expected with manufacturing below Econoday’s low estimate.

Vehicle production fell sharply in the month, down 2.0 percent in a reminder that consumer spending on autos has been very weak this year. And in a reminder of how weak capital goods data have been, production of business equipment fell 0.7 percent. Hi-tech goods, in yet further confirmation of trouble, were unchanged in the month.

The mining component is a positive in this report, up 1.6 percent for a second straight strong gain, with the utilities component also positive, at plus 0.4 percent.


But manufacturing makes up the vast bulk of the nation’s industrial sector and today’s report makes April’s strength look very isolated. This report is bad news for durables data yet to be released not to mention factory payrolls.

Note that traditional non-NAICS numbers for industrial production may differ marginally from NAICS basis figures."

Industrial Production

The only strong report for the second quarter was last month’s Industrial Production report.

Exploring the April Ramp

Image placeholder title

It seems manufacturers ramped up production for sales that did not appear and are unlikely to appear.

Anyone sense another month of growing car incentives is coming right up?

Mike “Mish” Shedlock

Industrial Production Flat, Manufacturing Jumps: Another Weather-Related Phenomenon?

Today’s industrial production report, for February, shows weak headline numbers.

Industrial Production Growing, Manufacturing Inching Along

The Fed G17 report shows Industrial Production is up 0.4% this month, but the manufacturing component weighted at about three-fourths of the total has been barely growing for some time. The Fed revised May from flat to +0.1 and April from +1.1 to +0.8.

Industrial Production Dives 0.9 Percent: Economists Expected a Gain

As with retail sales, economists seemed to have forgotten there was a hurricane. Either that or Econoday is doing another brilliant job of blaming general weakness on Harvey.

Industrial Production +0.5 Percent but Manufacturing Weak at +0.1 Percent

Industrial production beat the consensus (ignoring revisions), but manufacturing was weak once again.

Industrial Production “Unexpectedly” Declines Due to Weather.

Economists were surprised again today, this time over industrial production. The Econoday Consensus Estimate was for a flat reading of 0.0 percent but production fell 0.3 percent.

Industrial Production Unexpectedly Declines

Once again the "soft" data like ISM and the Fed regional reports are nothing but baloney. GDP estimates will tank.

Weak Industrial Production Numbers Confirm Manufacturing Recession

Industrial Production fell 0.3% as expected, but revisions subtract another 0.1%. Weather was again a factor.

Industrial Production Dives, Wiping Out a Strong December and Then Some

December industrial production looked too good to be true, and it was.

April Durable Goods: Yet Another Weak Second-Quarter Report

The string of bad economic reports at the start of the second quarter continues with today’s durable goods report.