Friday, December 14, 2012

Ind. Production & Capacity Utilization Beat Estimates

Both industrial production and capacity utilization for Nov. came in above consensus and certainly above our projections. This could be due to a dead-cat bounce in production after a slight downturn in Oct. caused by Sandy. We note that the Oct. m/m production change was revised down by 30bps. Higher capacity util. along with some improvement in initial jobless claims could be indicating a slightly better Dec. jobs report. However, we do not anticipate an upturn significant enough to satisfy the Fed's 6.5% unemployment rate anytime soon.

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