The U.S. industrial production data for the month of February is set to release tomorrow. According to a Wells Fargo research report, the industrial production is likely to have risen 0.5 percent in the month, following the decline seen in the January.
The manufacturing sector has lost momentum. In 2018, industrial production rose in nine out of 12 months but started 2019 with a fall of 0.6 percent. Utilities and mining recorded a gain of 0.4 percent and 0.1 percent, respectively, but were offset by the 0.9 percent fall in the manufacturing category. The softness was most pronounced in motor vehicles and parts, which dropped 8.8 percent, marking the largest one-month fall in auto production since the recession in 2009.
“We may see some bounce here in February, but there are not a lot of reasons to be optimistic about manufacturing in general. The ISM index is lower on trend in recent months and core capital goods orders and shipments have both been spotty at best”, added Wells Fargo.
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