Industrial Production surged last month as I expected, growing at over a 10% annual rate. The upward revisions in the manufacturing component from pervious months, I did not expect.

Industrial production advanced 0.9 percent in July. Although the index was revised down in April, primarily as a result of a downward revision to the output of utilities, stronger manufacturing output led to upward revisions to production in both May and June. Manufacturing output rose 0.6 percent in July, as the index for motor vehicles and parts jumped 5.2 percent and production elsewhere moved up 0.3 percent.

This is good news but it was already backed into the cake, as it were. A failure of industrial production to surge after the Japanese supply disruption was fixed would have been very bad news.

So this is good news, but not super good news. Again we will be looking closely at the manufacturing surveys as they roll out.