US IP soft/Builder sentiment mixed and lacking traffic

The 10 yr yield fell a touch back below 4.40% after the weak November industrial production figure, particularly in the manufacturing component. Manufacturing production rose .2% m/o/m vs the estimate of up .5% and October was revised down by 2 tenths to a drop of .7%. Auto production rebounded by 3.5% after a 5.4% drop in October but manufacturing production ex autos fell for a 3rd straight month and is down .7% y/o/y. Mining and utility output both fell.

Capacity utilization for manufacturing stands at just 76% which is below the 10 yr average of 77% and is just off the lowest level since March 2017 ex Covid. Notice in the chart below that it peaked pre Covid just as the tariff battle was at its peak. Manufacturing production also peaked then and something no one seems to be talking about when debating the use of tariffs.