US: Manufacturing recovery moves along – Wells Fargo

No slowdown in the industrial sector is seen in Friday’s numbers according to analysts at Wells Fargo. They highlight manufacturing output rose 1.0% in December. 

Key Quotes: 

“Spending may be cooling as the latest wave of COVID coincided with fading fiscal support last year, but the industrial sector remains relatively insulated. Industrial production shot up 1.6% in December, in part due to a 6.2% jump in utilities, but more notably a better-than-expected 1.0% increase in manufacturing.”

“Gains were widespread, with motor vehicles a notable exception. Yet autos still had a solid 2020, with production up 3.6% yr./yr.”

“With retail sales falling and production rising, inventories are recovering after being wiped out earlier in 2020."