POSITIVE PRODUCTION

April industrial production was surprisingly strong, rising 0.7% M-o-M with a 20bps upward revision to March. Manufacturing jumped 0.6% M-o-M and March was also revised up 20bps; nice. But the strength is highly selective and fits with the macro themes currently driving the economy. AI-related capital spending was up 1.5% M-o-M, defense restocking tied to the Iran conflict and utilities production were both up 1.9% M-o-M. Strong but painfully uneven.