US Industrial Production: Manufacturing trend starting to improve - Wells Fargo

According to analysts at Wells Fargo, today’s US Industrial Production report contained encouraging signs, despite the main headline. Ex-autos, manufacturing production was up 0.5%, and after a Boeing-related hit during the first quarter, should improve as trade tensions have eased, analysts added. Output at the nation’s factories, mines and utility plants slipped 0.3% in December, but the decline was entirely due to a 5.6% plunge in utilities amid unseasonably warm weather. Manufacturing output edged up 0.2%. Auto production was weak last month, consistent with weak sales as well as some potential lingering effects of the GM strike. Ex-autos, however, production bounced back a solid 0.5%.