US Manufacturing Slumps Back Into Contraction

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After this morning’s good news (regional Fed surveys and retail sales), macro data reality just hit with US Industrial Production tumbling 0.2% MoM (notably worse than the +0.1% MoM) as manufacturing plunged.

Source: Bloomberg

Manufacturing output slumped 0.4% MoM

Source: Bloomberg

It gets worse though as, on a year-over-year basis, Industrial production is barely growing (weakest since Feb 2017) and Manufacturing is back in contraction…

Source: Bloomberg

Mining was the biggest driver of the slowdown, falling 1.8% in July, “as Hurricane Barry caused a sharp but temporary decline in oil extraction in the Gulf of Mexico,” according to the report, but Machinery and Autos also declined.