An industrial production rebound didn’t materialize, but manufacturing improved: Industrial production fell 0.1% in November after declining 0.4% in October. Despite the end of the Boeing worker strike in early November, aerospace and miscellaneous transportation equipment output declined 2.6%. On the other hand, durable goods manufacturing improved overall, increasing 0.7% in November, with most durable industry groups posting gains. Manufacturing output overall rose 0.2%.
What it means: As it was noted last month, while a deal was made that ended the Boeing worker strike in early November, it is expected that it will take months for production to return to normal levels, keeping industrial production suppressed in the reports ahead.
Empire state manufacturing moderates after surging in November: Manufacturing activity in New York state held steady in December, with the headline general business activity index retreating 31 points to 0.2 after rising sharpy in November.
Why it matters: After months of incredibly high levels of optimism for future activity, manufacturers in the Empire state are starting to feel less optimistic about the months ahead, which doesn’t bode well for future activity.
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