US industrial production likely increased by 0.4% in February - Nomura

Analysts at Nomura believe that US industrial production increased a healthy 0.4% m-o-m in February.

Key Quotes

“Ex-auto manufacturing likely rose at a steady pace of around 0.3%. This would be in line with most incoming business surveys that have been pointing to heathy expansion in manufacturing activity. Looking at seasonally-adjusted industry forecasts, we think it is possible that auto assemblies rose firmly, despite slowing vehicle sales, and contributed to growth in total industrial output. Judging from EIA data on oil and gas extraction, we expect mining sector output to rebound in February following decreases in the two prior months.”

“Moreover, the number of active oil rigs in the US has picked up notably after declining modestly through Q4, pointing to continued expansion of mining sector output in the near-term. On the downside, utility output may have fallen notably in February, driven by a decline in demand for electric utilities following colder-than-usual weather in January.”