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Industrial Production Rises Most Since November After Significant Downward Revisions

Thanks to some considerable negative downward revisions, Industrial Production In July rose 0.6% (double expectations of a 0.3% rise) - the biggest MoM rise since November. However, year-over-year IP growth is flat at 1.3% - hovering at its weakest since the last recession. We previously noted the surge in auto inventories-to-sales (Motor Vehicle IP rose 10.6% MoM), which likely spurred this false dawn in IP, however, it is the rise in oil drilling - the first time since September - that raises an eyebrow as entirely unsustainable amid collapsing prices.

 

Thanks to the revisions, July looks awesome...

 

But YoY growth is flat at its weakest sicne the recession...

 

Of course, economists are rapidly extrapolating thisgrowth to support Fed rate hikes... missing the outlier-ness. We await next month's downward revisions.

 

Charts: Bloomberg