November industrial production rose much more than expected (+1.1% vs. +0.6%), led by a 0.6% increase in manufacturing production, which is up at a 5.1% annualized rate in the past three months. Industrial production has now reached a new all-time high.
The contrast between the vitality of the U.S. economy and the ongoing struggles of the eurozone economy (see top chart above) is stark, and can also be seen in the significant outperformance of the U.S. equity market (see chart below).
If we were doing as poorly as the Europeans, then we would really have something to complain about. As it is, all the evidence points to a substantial and ongoing recovery in the U.S. Things could be a lot better, to be sure, but the pervasive negative sentiment regarding the health of the U.S. economy is way overdone, in my view.