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Aug Industrial Production: -1.2% vs. -0.1% expected, +0.5% prior (revised). Capacity utilization...

Aug Industrial Production: -1.2% vs. -0.1% expected, +0.5% prior (revised). Capacity utilization 78.2% vs. 79.2% expected.
Comments (7)
  • jwbrewer
    , contributor
    Comments (317) | Send Message
     
    Defunct and outdated Keynesism says that when this happens in what just to be called a normal business cycle (if ever) employers have squeezed existing employees to the limit and will begin to hire. We'll see. The old models does not account for high gov't regs, high gov't debt and obligations or uncertainity..you know the conditions that made Greece...Greece.
    14 Sep 2012, 09:22 AM Reply Like
  • bbro
    , contributor
    Comments (10697) | Send Message
     
    Something to watch year over year Durable comsumer goods is down to +5.5%...still above the 3% warning level...Business Equipment Production y-o-y is still a robust +11.4%
    14 Sep 2012, 09:23 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1524) | Send Message
     
    bbro,

     

    I know you like to look at the bright side but isn't this a pretty horrible report?

     

    With a fall of this magnitude, I suspect the revisions will be even worse. It's all blamed on the hurricane so apparently we are back to blaming weather again for these "unexpected" declines.

     

    Rising inventories and falling demand are not a good combination for an economy.
    14 Sep 2012, 09:43 AM Reply Like
  • bbro
    , contributor
    Comments (10697) | Send Message
     
    I look at 2 indicators inside Industrial Production to tell me if a recession is approaching....I will let the data tell me not some ideological position that requires me to have a bias,,,,
    14 Sep 2012, 09:48 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1524) | Send Message
     
    bbro,

     

    Not talking about recession just "softening" which is what this is showing isn't it?

     

    Given where we are at the present rate of growth a "pause" in manufacturing growth is not a positive for the future. I don't believe that that's an ideological statement.
    14 Sep 2012, 10:50 AM Reply Like
  • bbro
    , contributor
    Comments (10697) | Send Message
     
    Agreed..softening probably..Pauses occur several times in a full business cycle that is why you need markers to tell you which pause
    is one to be concerned about,,,still haven't go that even with this headline weak number...
    14 Sep 2012, 11:15 AM Reply Like
  • mweaver
    , contributor
    Comments (201) | Send Message
     
    fed saw this one on the horizon
    14 Sep 2012, 02:15 PM Reply Like
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