In the two months since President Trump won the US election, US industrial production has jumped by the most since Nov 2021 (up 1.5%) to its highest since Sept 2022 (boosted by utilities in a month marked by colder temperatures), up 0.5% MoM in January (better than the 0.3% increase expected). That, along with an upward revision for December, pushed US Industrial Production up 2.00% YoY (its strongest pace of growth since Oct 2022)...
Source: Bloomberg
BUT - and it's a big but - US Manufacturing output, which accounts for three-fourths of total industrial production, contracted in January (-0.1% MoM vs +0.1% MoM exp)...
Source: Bloomberg
And another but... Capacity Utilization accelerated again in January (2nd straight month), rejecting the recessionary red flags...
Source: Bloomberg
The headline growth was driven largely by output at utilities jumping 7.2%, the most in three years...
So don't count on the surge in IP holding up unless climate change is a really real thing!?
