A significant downward revision for March (from -0.6 to -0.9% MoM) enabled April to beat handsomely (+0.7% vs +0.3% exp.) pleasing headline-tracking algos. While this is the biggest monthly jump in Industrial Production since Nov 2014 – all thanks to the biggest spike in Utilities since 2007; the year-over-year tumble continues with IP -1.07% YoY for the 8th month in a row. Industrial production has never fallen for this long – in 96 years – without the US economy being in recession.
The monthly pickup was thanks to Utilities: The increase of 5.8 percent in the output of utilities was its largest since February 2007, when it leapt 6.2 percent. In April, electric utilities and natural gas utilities expanded 5.4 percent and 9.3 percent, respectively.
But year-over-year, this is the 8th monthly plunge in a row…
The longest streak of losses without a recession since records began in 1920…
Of course none of that matters… until it does…
Charts: Bloomberg
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