Industrial Production missed expectations notably, dropping 0.4% MoM (the 6th of the last 8 months) missing expectations of a 0.2% drop (and notably weaker than the +0.9% upward revised July print). Thjis is the biggest MoM drop since August 2012. The big driver of the decline - just as we warned of nightmares ahead - was auto assemblies which plunged to a 4-year low by the most since Jan 2009. The year-over-year rise in IP is just 0.9% - flashing yet another recession-looming indicator.

Worst MoM drop in 3 years...

It appears yet another US macro indicator is flashing a recessionary warning... as YoY IP flashes red!!!

Why? Simple - just as we have explained... Manufacturing output fell 0.5 percent in August primarily because of a large drop in motor vehicles and parts that reversed a substantial portion of its jump in July