Tuesday, December 15, 2009

Industrial Production measures are updated today

The Federal Reserve has updated it series on industrial production today. A quick look at the updated graph of the index value and we can see there is life returning in this leading indicator. Keynesian's say this is also one of the leading indicators of inflation.

click on the graph for a larger view

Yahoo News is reporting on the Fed update, here is a small piece of their report:
 Stronger activity at mines led last month's increase in industrial production, rising 2.1 percent. The manufacturing sector — the biggest chunk of industrial output — rose 1.1 percent. Utilities fell 1.8 percent, according to the Fed report.

The portion of industrial capacity in use rose to 71.3 percent, from 70.6 percent in October. It shows that factories, mines and utilities are using more of their plants as the recovery takes root. But capacity use remains far below the 80 percent level that existed for part of the past decade.

This update does not show me a reason to change my current outlook position, which is slow to no economic growth and unemployment remaining above 10% for most of 2010.