Hurricane Distortions to Economic Reporting Start to Unwind

Two-Thirds of the 0.9% Monthly Jump in December 2017 Industrial Production
Reflected Unseasonably-Bad Weather Boosting Utility Usage

Full-Year 2017 Production Rose by 1.95%, Following Full-Year
Annual Declines of 1.22% (-1.22%) in 2016 and 0.71% (-0.71%) in 2015

Big Swings in Mining Activity (Oil Production) Drove Those Full-Year Changes, versus
Annual Stagnation in Utilities and in the Much-Larger Manufacturing Sector,
Despite a Late-2017 Manufacturing Surge for Hurricane-Damaged-Vehicle Replacement

Fourth Quarter Industrial Production Regained Its Pre-Recession Peak for a Second Time

Dominant Manufacturing Sector Held Shy of Its Pre-Recession Peak by 4.54% (-4.54%),
Just Having Passed a Full 10 Years, 120 Months or 40 Quarters of Continuous Non-Expansion;
Longest Period of Non-Expansion in the 100-Year History of the Production Series

In Ongoing Extreme, Monthly Volatility, December Housing Starts Plunged by 8.2% (-8.2%), Reflecting Some Negative Catch Up, as Hurricane-Distorted Boosts Began to Unwind

New Residential Construction Remained in Low-Level, Downtrending Stagnation, with
Building Permits Shy by 42.5% (-42.5%), Housing Starts Shy by 47.6% (-47.6%) and
Single-Unit Starts Shy by 54.1% (-54.1%) of Recovering Pre-Great Recession Peak Activity

Multiple-Unit Starts Recovered in 2015, but
Have Fallen Back Since by 20.9% (-20.9%) from Their Pre-Recession High