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Even though the economy is muddling along when it should be roaring, there are a few bright spots I can see. One of those is industrial production, which includes manufacturing and the output of mines and utility companies. Industrial production is not yet back to the peak levels of a few years ago, but the trend is up as this chart from Calculated Risk shows. The chart is based on the Federal Reserve’s data:

Click to enlargecalculated-risk-industrialproductionmay2010.jpg

Source: Calculated Risk

The Federal Reserve’s report stated this:

Industrial production advanced 1.2 percent in May after having risen 0.7 percent in April. Manufacturing output climbed 0.9 percent last month, its third consecutive monthly gain of about 1 percent, and was 7.9 percent above its year-earlier level…

We have plenty of worries about the economy and I’m not downplaying them, however there are some brights spots and manufacturing and industrial production are one of them.

Disclosure: No positions

Source: Manufacturing and Industrial Production: One Bright Spot in the Economy