"V" Rebound in US Industrial Production Resumes After October Stall
Thomas Net NewsIndustrial Production Rose More than Expected in November
By David R. Butcher Industrial production rose 0.8 percent last month, the strongest gain since August, according to the Federal Reserve this week. Still, industrial output has fallen 5.1 percent over the past year.
Since a small percentage point drop in June, the nation's mines, factories and utilities have made small but steady gains, except for a flat October. In the third quarter of the year, United States industrial output posted the first quarterly gain since early 2008 and the largest single-quarter gain since Q1 2005, improving hopes that the current production upswing may be a permanent one.
Industrial output continues its positive trajectory, as growth in U.S. industrial production last month posted its strongest gain since August, according to the Federal Reserve on Tuesday.
Overall, industrial production rose a better-than-expected 0.8 percent in November, the fifth consecutive month without a negative change, according to the Fed's report on industrial production and capacity utilization yesterday.
U.S. Industrial Production Index 1933-2009
While US Industrial Production only stalled in October and then rebounded, EU's October Industrial Production numbers may be reason for concern if no bounce came in November:
Wall Street Journal
Euro-Zone Industrial Output Declines
LONDON -- Euro-zone industrial production fell in October from September, the first such drop since March, highlighting the fragility of the economic recovery and suggesting a tough final quarter for the sector, data showed Monday.
According to Eurostat, the European Union's statistics agency, industrial production in the 16 countries that use the euro declined 0.6% in October from September and was down 11.1% from the year-earlier month. The annual fall was the 18th straight year-to-year decline.
The monthly fall may undermine expectations for the euro zone's gross domestic product to grow for a second consecutive quarter in the current quarter, particularly after a 2.1% decline in German manufacturing orders for October. Manufacturing orders are a good forward-looking indicator of output and suggest that the expected economic pickup in the fourth quarter could depend more heavily on increased consumer spending in the holiday period. Euro-zone GDP grew 0.4% in the third quarter from the second.
The report "is a reminder that the euro zone still faces a difficult economic environment and a tough job to develop a healthy, sustainable recovery," said Howard Archer, an economist at IHS Global Insight, a consulting firm...
By David R. Butcher Industrial production rose 0.8 percent last month, the strongest gain since August, according to the Federal Reserve this week. Still, industrial output has fallen 5.1 percent over the past year.
Since a small percentage point drop in June, the nation's mines, factories and utilities have made small but steady gains, except for a flat October. In the third quarter of the year, United States industrial output posted the first quarterly gain since early 2008 and the largest single-quarter gain since Q1 2005, improving hopes that the current production upswing may be a permanent one.
Industrial output continues its positive trajectory, as growth in U.S. industrial production last month posted its strongest gain since August, according to the Federal Reserve on Tuesday.
Overall, industrial production rose a better-than-expected 0.8 percent in November, the fifth consecutive month without a negative change, according to the Fed's report on industrial production and capacity utilization yesterday.
U.S. Industrial Production Index 1933-2009
While US Industrial Production only stalled in October and then rebounded, EU's October Industrial Production numbers may be reason for concern if no bounce came in November:
Wall Street Journal
Euro-Zone Industrial Output Declines
LONDON -- Euro-zone industrial production fell in October from September, the first such drop since March, highlighting the fragility of the economic recovery and suggesting a tough final quarter for the sector, data showed Monday.
According to Eurostat, the European Union's statistics agency, industrial production in the 16 countries that use the euro declined 0.6% in October from September and was down 11.1% from the year-earlier month. The annual fall was the 18th straight year-to-year decline.
The monthly fall may undermine expectations for the euro zone's gross domestic product to grow for a second consecutive quarter in the current quarter, particularly after a 2.1% decline in German manufacturing orders for October. Manufacturing orders are a good forward-looking indicator of output and suggest that the expected economic pickup in the fourth quarter could depend more heavily on increased consumer spending in the holiday period. Euro-zone GDP grew 0.4% in the third quarter from the second.
The report "is a reminder that the euro zone still faces a difficult economic environment and a tough job to develop a healthy, sustainable recovery," said Howard Archer, an economist at IHS Global Insight, a consulting firm...