Industrial Production and Capacity Utilization
Next up is December's Industrial Production report at 9:15 AM ET Wednesday. This data measures output at U.S. factories, mines and utilities, giving us an indication of manufacturing sector strength or weakness. Current forecasts are calling for an increase in production of 0.6% from November's level. A weaker reading would be considered good news for bonds and could help lower mortgage rates as it would point towards a manufacturing sector that was softer than many had thought. However, the CPI report is more important to the bond market than this data is and will likely have a heavier influence on mortgage rates.