US industrial production fell sharper than expected - Rabobank

Bas van Geffen, Quantitative Analyst at Rabobank, notes that the US industrial production fell sharper than expected in February, posting a -0.5% decline m-o-m versus a -0.3 consensus.

Key Quotes

“Capacity utilisation fell 0.2 percentage points as well, to 76.7, thereby offsetting most of the recovery in January after a continuous decline in the second half of 2015. These data, and the remaining spare capacity that it signals, seem in line with the Fed’s assessment that there is still some lack of price pressure to fully ensure a return to the 2%-target.”