The Observatory: Industrial Production Monitor
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Or get in touch by emailing info@prometheus-research.com. We share our latest note from The Observatory.
The Observatory is our real-time monitoring of the US economy. It offers a regular systematic dissection of virtually every major fundamental macro data set released in the US. We scan the time-series characteristics, sectoral decompositions, macro-cycle implications, and the effects on GDP and inflation of each release, with an understanding of the nuances and specific manipulations required for each data series. The Observatory seeks to paint a moving picture of the economic cycle, print by print.
We share our latest note from The Observatory: Industrial Production Monitor.
Synthesis: The latest industrial production data continued to show mixed, but nonetheless positive readings. The latest sequential data and the trending breadth continue to skew positive. However, recent momentum has been mixed, weighing on growth. This print suggests continued expansion of the industrial sector, but does not imply acceleration, which may be a headwind for industrial equities.
Read all the data driving this assessment below:
Until next time.
IP acceleration plus a tight labor market is the textbook late cycle handoff to capex. Equity sector tilts should rotate from defensives toward industrials and machinery names. Watching cap goods orders for confirmation.