Friday, October 16, 2009

Industrial Production Grew at 5.2% in Q3

NEW YORK (Reuters) - U.S. industrial production rose in September for a third consecutive month, Federal Reserve data showed on Friday, suggesting the economy closed out the third quarter with surprisingly strong growth. For the third quarter as a whole, output advanced at a 5.2% annual rate, the first quarterly gain since the first quarter of 2008 and the largest increase since the fourth quarter of 2005.

The figures will likely reinforce the view that the longest recession since the Great Depression ended in the third quarter. Economists in a Reuters poll released on Thursday pegged the third-quarter growth rate at 3.1%.

MP: The chart above shows that industrial production grew for a third straight month in September, for the first time in almost four years (see shaded areas).


At 10/16/2009 12:46 PM, Anonymous Benny "Tell It LIke It Is Man" Cole said...

The cheap dollar may herald an American manufacturing revival, or sorts. Print that money Bernanke, until the plates start melting.
We need to pay off our debts, and we can do it better with cheap money!
Print, print, print harder!

At 10/16/2009 1:52 PM, Anonymous K Dostal said...

The chart also shows IP growth declining from August to September. The Index is also within 2.5, plus or minus, from 2002 levels. Motor vehicle manufactures and parts were significant factors in IP growth. C4C is now gone.

So you're cheering a temporary and diminishing increase in a low level of industrial production. Great analysis doc.

Next month, if IP growth is smaller you'll cheer the fourth consecutive month of gains. If it's negative, you'll find some other statistic to report on - if you can find one.

At 10/16/2009 10:58 PM, Anonymous Steve said...

Three quarters of growth is very nice coming out of a recession. I would like to see the gdp numbers for the current period.


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