Macro Flash Report

Industrial & Manufacturing Production

Takeaway:

January’s Industrial Production data was robust, with year-over-year output hitting a multi-year high. Despite this positive headline figure, underlying manufacturing data suggests the sector still faces some headwinds.

 

Industrial Production (YoY% Green/Red)

In January, Industrial Production rose by 0.5% month-over- month, surpassing the forecasted 0.3% increase and extending the upwardly revised 1.0% gain in December.

• A main driver of this growth was the 0.2% advance from aircraft and parts, as well as output of utilities jumping by 7.2%.
• On an annual basis, production soared by 2%, following a downwardly revised 0.3% increase in December. This marks the largest rise since October 2022.
• Capacity Utilization ticked up to 77.8% in January from 77.5%, exceeding the anticipated 77.7%.

Manufacturing (SIC) Production, which comprises 78% of total industrial production, experienced a -0.1% decline in January, missing the market expected 0.1% rise and following a downwardly revised 0.5% increase in December.

• The durable index remained unchanged, while the nondurable index decreased.
• Annually, production surged by 1%, after a -0.1% fall in December. This marks the largest gain since December 2023.
• Capacity Utilization ticked down to 76.3% from 76.4% in the prior month.