18 Feb 2015
US growth trending higher – ING
FXStreet (Barcelona) - James Knightley, Senior Economist at ING, expects today’s US Industrial Production to point towards a strong start for the country in 2015, and support an optimistic outlook for US growth into Q1 2015.
Key Quotes
“Industrial production fell 0.1% MoM in December, entirely due a 7.3% plunge in utilities. December weather was mild after a cold November so such a move wasn’t really all that surprising."
“With January having got colder again, we should be anticipating a relatively strong bounce back in this component today.”
“Manufacturing output rose 0.3% MoM in December and we are looking for a similar to slightly stronger outcome for January.”
“While the ISM index dipped in the month it was still consistent with strong growth and we suspect that auto output will recover. However, we are a little more cautious on the mining component given the steep fall in commodity prices. Nonetheless, given once a well is oil fracked there is little tendency to close it off the downside for this component is perhaps fairly limited.”
“As such, we anticipate a decent industrial production report that should suggest the sector started the year on a strong footing.”
“With trade numbers likely to bounce back strongly in January after the big inventory build in oil in December it is likely to add to optimism on 1Q15 GDP growth – we predict growth of around 3% annualised.”
Key Quotes
“Industrial production fell 0.1% MoM in December, entirely due a 7.3% plunge in utilities. December weather was mild after a cold November so such a move wasn’t really all that surprising."
“With January having got colder again, we should be anticipating a relatively strong bounce back in this component today.”
“Manufacturing output rose 0.3% MoM in December and we are looking for a similar to slightly stronger outcome for January.”
“While the ISM index dipped in the month it was still consistent with strong growth and we suspect that auto output will recover. However, we are a little more cautious on the mining component given the steep fall in commodity prices. Nonetheless, given once a well is oil fracked there is little tendency to close it off the downside for this component is perhaps fairly limited.”
“As such, we anticipate a decent industrial production report that should suggest the sector started the year on a strong footing.”
“With trade numbers likely to bounce back strongly in January after the big inventory build in oil in December it is likely to add to optimism on 1Q15 GDP growth – we predict growth of around 3% annualised.”