Despite collapsing macro data (and regional manufacturing surveys slumping), analysts forecast a fifth straight month of increased US industrial production in May (although at a considerably slower pace of just +0.4% MoM). Industrial production did rise in May – but only by 0.2% MoM…
Source: Bloomberg
However, even more notable was the fact that US manufacturing output contracted in May (-0.1% MoM vs +0.3% MoM exp and +0.8% in April)…
Source: Bloomberg
Utilities and Mining rose in May (+1% MoM and +1.3% MoM respectively).
Capacity utilization rose modestly to 79% from 78.9% in April, revised down from 79%.
And finally, we note that the Dow Jones INDUSTRIAL Average has tumbled back to earth and reconnected with US INDUSTRIAL production…
Source: Bloomberg
Putting the ‘mean’ in mean-reversion for investors. But it is amazing just how long The Fed can hide reality with a few trillion dollars.
