The Fed blames the weather.

Bloomberg Econoday says the headline number isn't as bad as it looks.

I suggest the numbers are far worse than they look at first glance, and the weather has nothing to do with it.

Highlights

The headline isn't as bad as it looks as the manufacturing component of the industrial production report moved forward for a second month. Industrial production was unchanged in October with September, reflecting downgrades to both utility and mining production, revised a sharp 3 tenths lower to minus 0.2 percent. But manufacturing volumes firmed again, up 0.2 percent for a second straight month.

Vehicle production was very strong in October, up 0.9 percent to extend a long line of impressive gains. Year-on-year, vehicles are up a very solid 5.0 percent and are eclipsed only by the 6.7 percent gain for the selected hi-tech component which rose 1.0 percent in October to extend its run of impressive gains. Another positive is a 0.2 percent gain for business equipment which has otherwise been weak most of the year.