Following the impressive beat in the ISM manufacturing PMI earlier this month, today’s Industrial Production data did not disappoint. In fact, the data not only showed decent month-over-month growth, but also came in ahead of estimates. Although something of a coincident indicator, the demonstrated improvement chimes with what we are seeing in our Business Cycle Checklist this month. This should be seen as very constructive for investors in risk assets, with the year-over-year chart showing a clear bottom similar to June 2009 (around the time that equities and other cyclical markets bottomed and began a multi-year bull market).
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