Sunday , December 8 2019
Home / Mish's Global Economic / Industrial Production Dives and It’s Not All Strike Related

Industrial Production Dives and It’s Not All Strike Related

Summary:
Industrial production was down 0.8% in October with Manufacturing down 0.6%. Motor vehicles were down a whopping 7.1%. Industrial Production and Capacity Utilization declined much more than expected 0.8%in October according to the Fed report. Economists at Econoday forecast a 0.4% decline. Key Points Industrial production fell 0.8 percent in October after declining 0.3 percent in September. Manufacturing production decreased 0.6 percent in October. Much of this decline was due to a drop of 7.1 percent in the output of motor vehicles and parts that resulted from a strike at a major manufacturer of motor vehicles. It's not all strike-related. Weakness was across the board. Business equipment was down .06% month-over-month and a whopping 2.5% year-over-year. Construction is down for the third

Topics:
Mike Shedlock considers the following as important:

This could be interesting, too:

Mike Shedlock writes All Aboard the “No Recession” Train

Mike Shedlock writes Toilet Wars: Trump Asks EPA to Review the Flush

Mike Shedlock writes Huge Difference Between GDPNow and Nowcast Models

Mike Shedlock writes Trump Tweets “Manufacturing Blowout”: What’s the Real Story?

Industrial production was down 0.8% in October with Manufacturing down 0.6%. Motor vehicles were down a whopping 7.1%.

Industrial Production and Capacity Utilization declined much more than expected 0.8%in October according to the Fed report. Economists at Econoday forecast a 0.4% decline.

Key Points

  • Industrial production fell 0.8 percent in October after declining 0.3 percent in September.
  • Manufacturing production decreased 0.6 percent in October. Much of this decline was due to a drop of 7.1 percent in the output of motor vehicles and parts that resulted from a strike at a major manufacturer of motor vehicles.
  • It's not all strike-related. Weakness was across the board. Business equipment was down .06% month-over-month and a whopping 2.5% year-over-year.
  • Construction is down for the third time in four months

Industrial Production vs Recessions

2014-2015 Energy Slump

This is not a replay of the 2014-2015 recession scare.

Trucking provide another recession warning: Freight Volumes Negative YoY for 11th Straight Month

Donald Broughton, founder of Broughton Capital and author the Cass Freight Index says the index signals contraction, possibly by the end of the year. That's just one one month away.

Mike "Mish" Shedlock

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Leave a Reply

Your email address will not be published. Required fields are marked *