The 0.4% U.S. June industrial production rise beat estimates
The 0.4% U.S. June industrial production rise beat estimates to leave a fifth consecutive gain from weather-depressed winter readings, though analysts saw downward revisions that left a slightly weaker than expected report. Analysts saw a 1.6% mining surge, an expected 0.2% for manufacturing, and lean 0.4% for the vehicle assembly rate. Utility output was flat, but analysts still have a big 9.2% 4-month climb, following a 12.8% drop between August and February that left the lowest level since January of 2006. Analysts saw a hefty 4.7% growth clip for industrial production in Q2, following rates of 1.4% (was 1.5%) in Q1, 0.7% in Q4, and 0.8% in Q3, but 1%-4% contraction rates in the prior three quarters. Analysts still have a 1.4% industrial production drop from the cyclical-peak in November of 2014 despite a big 2.3% rise since May of 2016, thanks to gains in only 1 of the 6 quarters through Q2 of 2016. Analysts're seeing a mining and factory rebound that is trimming excess capacity and lifting producer sentiment, confidence and small business optimism. Yet, analysts've seen surprising restraint in growth for GDP, retail sales and payrolls, with still-depressed inventories.