Macro Flash Report
Industrial & Manufacturing Production
Takeaway:
The rebound in December industrial production data provides a strong signal for increased activity and output going into 2025, after much of the year stagnated. We anticipate that this should continue to expand through the first half of the year.
Industrial Production (YoY% Green/Red)
In December, Industrial Production soared by 0.9% month- over-month, surpassing the forecasted 0.3% increase and extending the upwardly revised 0.2% rise in November. This marks the strongest increase since February.
- On an annual basis, production jumped by 5%, following a -0.6% decline in November. This is the first annual gain in six months.
Capacity Utilization surged to 77.6% in December, rebounding from the 77.0% rates in the previous two months, which were the lowest since May 2020. This represents the highest rate since August.
Manufacturing (SIC) Production, which comprises 78% of total industrial production, experienced a 0.6% increase in December, exceeding the market expected 0.2% gain and following the upwardly revised 0.4% advance in November.
- Annually, production was flat at 0.0%, following an upwardly revised -0.6% fall in November.
- Capacity Utilization ticked up to 76.6% from 76.2%, the highest since September.