The headlines say seasonally adjusted Industrial Production (IP) improved month-over-month. Our analysis agrees.
Analyst Opinion of Industrial Production
There was insignificant revision to the existing data over the last 6 months. The best way to view this is the 3 month rolling averages which improved. Industrial production is in a long term upward trend.
Manufacturing improved this month.
Manufacturing employment rate of growth is accelerating year-over-year.
IP headline index has three parts – manufacturing, mining and utilities – manufacturing was up 0.1 % this month (up 3.0 % year-over-year), mining up 1.0 % (up 10.8 % year-over-year), and utilities were up 3.0 % (up 5.3 % year-over-year). Note that utilities are 10.8 % of the industrial production index, whilst mining also is 10.8 %.
Comparing Seasonally Adjusted Year-over-Year Change of the Industrial Production Index (blue line) with Components Manufacturing (red line), Utilities (green line), and Mining (orange line)
Unadjusted Industrial Production year-over-year growth for 2 years has been near or below zero – it is currently trending up and in expansion.