Much Weaker Than Expected
The Fed’s Industrial Production and Capacity Utilization report for August did not live up to expectations but the rebound is in its fourth month.
Details
- Industrial production rose 0.4 percent in August for its fourth consecutive monthly increase. However, even after the recent gains, the index in August was 7.3 percent below its pre-pandemic February level.
- Manufacturing output continued to improve in August, rising 1.0 percent, but the gains for most manufacturing industries have gradually slowed since June.
- Mining production fell 2.5 percent in August, as Tropical Storm Marco and Hurricane Laura caused sharp but temporary drops in oil and gas extraction and well drilling.
- The output of utilities moved down 0.4 percent. At 101.4 percent of its 2012 average, the level of total industrial production was 7.7 percent lower in August than it was a year earlier.
- Capacity utilization for the industrial sector increased 0.3 percentage point in August to 71.4 percent, a rate that is 8.4 percentage points below its long-run (1972–2019) average but 7.3 percentage points above its low in April.
Expectations vs Actuals
The Econoday consensus estimates were a big miss across the board as the rise in IP has dramatically slowed.
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Mish
200,000 coming.
Likely 400k-450k by year end.
That would be non-linear and a third spike equivalent to the first two combined.
Immaterial. Recession is over, S&P heading to 3600.
No longer seeing a recession, fund managers are beginning to shift into industrials and value stocks, Bank of America survey finds
Last Updated: Sept. 15, 2020 at 11:34 a.m. ET
Value. As in ..store of value. This is what fund managers do during a recession. They aren’t shifting into the growth stocks.
Fox News still allows commenting.
They know that in these hard times we all need a laugh.
Yahoo scuttled all comments.
As for these others, the instant you click in your comment now, they will already have an attack drone heading your way.
Yahoo comments were a waste anyway. Just like other forums, such as Slate. It’s hard to find many web places to have an intelligent discussion these days! Mish seems to be one of the few remaining comment forums worth visiting.
It’s well curated… and that’s no easy feat, particularly if you hold strong opinions of your own.
surely our gubbermint will dole out more stimuli
instead of letting bankrupt companies go out of business