Friday, May 14, 2010

Industrial Production Growth Highest in 10 Years

May 14 (Bloomberg) -- "Industrial production in the U.S. rose in April by the most in three months, indicating factories keep powering an economic recovery that’s becoming broad-based.
Output at factories, mines and utilities increased 0.8 percent last month after a 0.2 percent gain, figures from the
Federal Reserve showed today. Production at manufacturers rose 1 percent for a second month.

Spending by companies and consumers is spurring production at the same time factories are scrambling to replenish inventories. The combination of manufacturing growth and a pickup in Americans’ purchases is helping sustain the economy’s expansion."


MP: On an annual basis, industrial production increased by 5.2% in April, the highest growth rate in almost ten years, going all the way back to a 5.5% growth rate in June 2000 (see chart above). The manufacturing component of industrial production grew by 6% compared to April of last year.

4 Comments:

At 5/14/2010 9:44 AM, Anonymous morganovich said...

we're still more than 7 points below average capacity utilization.

(73.7% vs 80.6 avg 1972-2009 and statistically indistinguishable from the 2001-2 low of 73.5%.)

focusing on % changes after such a massive decline is very misleading.

the comps are going to get harder every month now and the declining growth in YOY will show that the recovery is actually quite tepid.

and the 5% appreciation of the dollar since the end of april is going to create a real drag.

equity markets are starting to tell us that they see problems ahead.

things are better than last year, but we are by no means out of the woods yet.

 
At 5/14/2010 4:31 PM, Anonymous Anonymous said...

Wow! well i can predict more big jumps up and down since economy is completely distorted.

 
At 5/15/2010 6:29 PM, Anonymous Flicker said...

There was this town in Alaska once that had an annual growth rate in population of 100%. There was no in-migration.

You see, the town's only residents were a man and his wife and she had given birth to twins. After that, she got her tubes tied.

Moral: When you start from extremely low levels, percentage changes look astounding!

Level, trend, sustainability.

 
At 5/15/2010 8:58 PM, Anonymous Deserve Mo said...

There was this town in Alaska once that had an annual growth rate in population of 100%. There was no in-migration.

You see, the town's only residents were a man and his wife and she had given birth to twins. After that, she got her tubes tied.

Moral: When you start from extremely low levels, percentage changes look astounding!

Level, trend, sustainability.

 

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