Industrial Production surged 0.9% MoM in December (almost double the 0.5% rise expected) and pushed the overall level above its Nov 2014 peak to a new record high.
The December beat was helped by a notable downward revision for Nov (from +0.2% to -0.1% MoM)
And the biggest driver was a huge surge in Utilities… (so blame the weather!)
One thing to suck the jam out of the market’s donut is that Manufacturing Output actually missed expectations – rising just 0.1% MoM (vs +0.3% MoM exp).
But worries about over-heating are starting to rise as Capacity Utilization hits a 3-year high.
Since the previous peak in US Industrial Production on November 2014, The Dow is up 46% and Industrial production is unchanged…