U.S. Outlook: Industrial production ends 2017 on a high note
December industrial production handily beat consensus expectations, increasing 0.9% in December.
For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Jan. 19.Key observations:
- Industrialized production data reveal an 11% annualized gain in industrial production over the last three months of the year, a pace not achieved since the first months of the expansion.
- The recently passed tax reform bill will only add to the demand for business equipment, which was already rising organically.
- A weak U.S. dollar is making U.S. manufactured good more attractive globally, boosting U.S. exports and manufacturing production.
- Accelerating global growth is also increasing demand from abroad.