Following on from the shock December retail sales plunge we see manufacturing output also fell in December. Output contracted 0.3% month-on-month versus expectations of a 0.3% gain that was based on the decent ISM and regional manufacturing numbers. The weakness was primarily in auto-related output, which fell 1.3%, presumably on lingering supply chain problems holding back output given strong demand for vehicles. However, even excluding this key component, non-auto manufacturing still fell 0.2% MoM. Utilities actually held up better than thought. Output was down “only” 1.5% despite the really warm weather that would ... (full story)