Thanks to ‘entirely sustainable’ 5.1% MoM surges in both Motor Vehicle manufacturing (thank you Subprime) and Utilities (thank you Polar Vortex 2.), Industrial Production in November surged 1.3% (against expectations of +0.7%) for the biggest rise since May 2010. For context, November’s surge is the 2nd biggest monthly rise since October 1998… sound right? With factory output now above late-2007 pre-recession peak levels, it seems The Fed will find it hard to talk this one down to justify lower-for-longer…
The 2nd best monthly surge since the crash… or October 1998!
Factory output is now estimated to have been above its late-2007 pre-recession peak in both October and November. In November, the indexes for both durables and nondurables increased more than 1 percent, and the output of every major industry group increased or remained unchanged.
Among durable goods industries, the output of motor vehicles and parts jumped 5.1 percent as a result of an increase of 900,000 units at an annual rate in total motor vehicle assemblies.
In November, the output of utilities jumped 5.1 percent, as weather that was colder than usual for the month boosted demand for heating.
Thank goodness for the Polar Vortex 2.0 and subprime credit. This is what the US economy has come to.
Charts: Bloomberg
via Zero Hedge http://ift.tt/1sv8KQt Tyler Durden