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US Economy Decelerates As Industrial Production Misses, Capacity Utilization Lowest Since October
Earlier today we reported that producer prices in May rose primarily as a result of a jump in electricity and nat gas prices. Which is why it is somewhat surprising that Industrial Production among Utilities dropped by the most, or -1.8%, for the second month in a row, following last month's -3.2% decline. This drop was offset by an increase in Mining IP of 0.7% (a decline from April's 1.1%) and the general manufacturing production which increased by a tiny 0.1%, still the best result of the past three months. Altogether, these amounted to an unchanged print in the broader index, which printed at 98.7, same as April, and the lowest since February, not to mention below expectations of a 0.2% increase.
More importantly, that IP just posted a Q/Q decline is hardly encouraging for those claiming Bernanke is ready to remove the economy's training wheels:
Finally, looking at capacity utilization, in May total industry CU edged down 0.1 percentage point to 77.6 percent, a rate 0.2 percentage point below its level of a year earlier and 2.6 percentage points below its long-run (1972–2012) average. It was also the lowest print since October 2012. Oops.
Of course, what is bad for the economy is good for the stock market. Actually, when it comes to the stock market, everything is good for this last bastion of faith in central planning.
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There is no such thing as deceleration, only negative acceleration.
...and the WAR will solve all our problems..
"...and the WAR will eliminate some of our unfunded liabilities.." - fixed.
A grave marker is far cheaper than a lifetime of EBT and health care.
Some things never change.
Maybe there is actually deceleration; if so, it's "Positive deceleration"
what morons, anyone with any sort of utility demand in their business has seen rates for electricity skyrocket (fuck you bernanke), no surprise they are trying to cut back and become more efficient.
I remain long black markets and sharecropping...
add that utility increase to soaring postal rate increases and crushing health care costs.....painful for small businesses...especially for us Cheap Bastards.
When you say "decelerates" do you mean that it is going backwards more slowly? ;)
Looking at the so-called 'indexes' it seems we must be back to 'bad news is good' again for at least today....but I get the feeling people are getting very nervous out there. 'Salad days' no longer.
The upcoming war with Syria should help boost industrial production...oh wait all of our shit is made in China. How does that work? Hey China may we have some of our missile components so we can bomb your interests? No?...pretty please? I guess we didn't think that one all the way through now did we?
Decelerate means when you have projected Q2GDP at 1.6% and you lower it to 1.3% -- and then note 1.3% is with full QE running, but before the main impact of the Sequester arrives with July's DoD furloughs.
Then you decelerate the 10 yr note yields back down to 1.5%.
More importantly, that IP just posted a Q/Q decline is hardly encouraging for those claiming Bernanke is ready to remove the economy's training wheels
There is no growth and no training wheels. While I get the message, this meme is driving me bonkers.
If anything, all this QE is driving the economy into the ground.
Can't wait to see the DOW accelerate on news of more QE. Wheeee Let's ride this economy straight over the cliff.
Remember the ZH Audi graveyard article?
http://www.zerohedge.com/news/2013-03-17/where-channel-stuffed-german-ca...
Just wondering if the US government department includes "channel stuffing" in their reported number.
Here's some IP to consider - type greece homeless into youtube and enjoy the show.