The Index of Industrial Production (IIP) data for August 2013 shows a sudden drop from July’s big number down to +0.6%.
The numbers better start improving fast now, since we know that last year the numbers started picking up from October. The chart now looks increasingly flat, and gives very little confidence in production improvement.
The biggest loser this time was manufacturing (-0.1%). Mining (-0.2%) though negative remained better than previous months. Electricity surprised on the upside with (+7.2%). The biggest weight in the index, though, is manufacturing.
And then, the use based indexes show us the picture on specific areas. Capital goods fell, while basic and intermediate goods rose. Consumer goods sees a slight improvement.
(Click for larger image)
The best sectors were Electrical Equipment and Garments, and the worst were Media/Communication equipment and Furniture. The mystery of the Rubber Insulated Cable continues as that grows +284% in August, after a +336% July.
Revisions: We have seen upward revisions this time. July was upgraded to +2.75% from a first reported +2.63%, and May was finally revised to -2.52% (after the first revision to -2.82%).
Impact: Negative, if people believe this data.