US Manufacturing Production Contracts YoY For 8th Straight Month

Optimistic analysts expected a 0.4% MoM jump in US industrial production in February (rebounding from contractions in December and January), and were pleasantly surprised with a shocking 0.6% MoM rise (after a downwardly revised 0.5% contraction in January). 

This surprise jump shifted US Industrial Production into YoY growth for the first time since August…

Source: Bloomberg

The rise was dominated by Utilities, which rose 7.1% in February after falling 4.9% in January. Mining fell 1.5% in Feb. after rising 1% in Jan.

An impressive bounce but this was all before the virus impacts began.

Manufacturing production, however, continues to contract YoY for the 8th straight month…

Source: Bloomberg

Finally, we note that The Dow Jones INDUSTRIAL Average has crashed back to earth along with the real economy’s actual INDUSTRIAL production…

Source: Bloomberg

What happens next?