Big Bounce For Industrial Production Helps National Activity Index

The big bounce back for industrial production, specifically manufacturing production, contributed 0.36 to June's 0.43 showing for June's national activity index. This is a very strong result that tops Econoday's consensus range. Other readings were steady in the month with employment contributing 0.08, sales, orders, and inventories contributing 0.06 with personal consumption and housing, pulled down by declines in housing starts and permits, at minus 0.06.

Revisions to previously released government data were the main factors behind a sharp downward revision to May, to minus 0.45 from an initial minus 0.15. In a partial offset, April is revised to 49 from 42. This index began to turn higher at the end of last year and continues, despite the drop in May, to post the best results of the ongoing expansion.