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Industrial Production, Capacity Utilization Better Than Consensus

Tyler Durden's picture




 

July industrial production came in slightly better than consensus expectatins of 0.5%, printing at 0.9% for the biggest rise of 2011 to date. This followed an upward revised June of 0.4%, up from 0.2%. Manufacturing output rose 0.6 percent in July, as the index for motor vehicles and parts jumped 5.2 percent, the biggest driver for the spike, and production elsewhere moved up 0.3 percent. Some other details from the report: "The output of mines advanced 1.1 percent, and the output of utilities increased 2.8 percent, as the extreme heat during the month boosted air conditioning usage. At 94.2 percent of its 2007 average, total industrial production for July was 3.7 percentage points above its year-earlier level." As for capacity utilization, the total industry rate climbed to 77.5 percent, a rate 2.2 percentage points above the rate from a year earlier but 2.9 percentage points below its long-run (1972--2010) average."

 

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Tue, 08/16/2011 - 09:26 | 1564938 somethingelse
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and we have the single bullish piece of news to point to if we resume the vapour volume rally today   LOL

Tue, 08/16/2011 - 09:26 | 1564939 Sudden Debt
Sudden Debt's picture

Industrial Production....

what do you guys actually still produce in America?

 

Tue, 08/16/2011 - 09:34 | 1564964 Joe Davola
Joe Davola's picture

Meth and Porn.

Tue, 08/16/2011 - 09:38 | 1564985 dwdollar
dwdollar's picture

...and Hopium.

Tue, 08/16/2011 - 09:41 | 1564995 dwdollar
dwdollar's picture

And of course USD.  We are real good at printing that.

Tue, 08/16/2011 - 09:34 | 1564967 Anonymouse
Anonymouse's picture

Industrial strength BS

Tue, 08/16/2011 - 09:36 | 1564979 augie
augie's picture

We still produce a fair number of I.O.U's

Tue, 08/16/2011 - 10:03 | 1565038 poor fella
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WE in America are able to 'manufacture' COOL AIR!

Overall industrial production jumped 0.9 percent -- the biggest increase this year. Unusually hot weather in July drove demand for energy generated by utilities. - AP

There's a huge market for cool air, who needs Boeing and soybeans, this is the next big thing!

Those container ships ARE NOT going back to China empty! I'm looking for a huge 2012 suprise drop in the trade deficit when these numbers are released!

Tue, 08/16/2011 - 09:26 | 1564940 somethingelse
somethingelse's picture

and we have the single bullish piece of news to point to if we resume the vapour volume rally today   LOL

Tue, 08/16/2011 - 09:26 | 1564941 Boilermaker
Boilermaker's picture

I work in the auto industry?  What f'ing rebound?

Tue, 08/16/2011 - 09:29 | 1564949 SDRII
SDRII's picture

European autos sales down. Ford reports Europe decline this am. Auto production = jobs program 

Tue, 08/16/2011 - 09:30 | 1564951 Hondo
Hondo's picture

Number ex-channel stuffing autos...tepid...ex-mining and utilities....well, nuff said.

Tue, 08/16/2011 - 09:35 | 1564969 youngman
youngman's picture

I thought it would be a big utility increase because of the heat.......our industrial production was electricity to run our Air Conditioners.....that is not how an economy works well...

Tue, 08/16/2011 - 09:40 | 1564993 A Man without Q...
A Man without Qualities's picture

Industrial production gets a boost from fat Americans turn up their air con, so they don't sweat so much while lying on their couch...

Tue, 08/16/2011 - 09:59 | 1565041 jus_lite_reading
jus_lite_reading's picture

^^^THIS^^^ Exactly!! Electicity usage SURGED TO RECORD HIGHS and this made up most of the percentage gains!!!!!! LMAO!!!

Tue, 08/16/2011 - 10:15 | 1565091 poor fella
poor fella's picture

So the more people unemployed, the better industrial production? Niiiice! Somebody deserves a bonus.

 

Tue, 08/16/2011 - 09:38 | 1564987 Boilermaker
Boilermaker's picture

And...the ramp machine is in 5th gear.  The market will be gunned higher whether you like it or not.  Freedom and laws can eat a bag of shit.

Tue, 08/16/2011 - 10:22 | 1565103 TruthInSunshine
TruthInSunshine's picture

CNBS-Bloomberg-WallStreet-Banking-CONfidenceCon-PonziMatrix says:

"...an increase in utlization & demand...."

 

Reality says:

People cranked up the AC in their mortgage-liberated/REO (but not wanted) houses, for not wanting to sweat their balls off.

In other news, nuclear disasters and Martian Invasions on earth are BULLTARDISH.

Tue, 08/16/2011 - 11:12 | 1565305 djcando
djcando's picture

Here's an interesting counterpoint to this story:

 

10:45 AM ET 8/16/11 | Reuters

Canada factory sales plummet, signal stalled growth

* Sales down by 1.5 pct, analysts expected 0.4 pct drop

* Sales down in 15 of 21 manufacturing sectors

* Data all but confirms economy stalled in Q2 growth (Adds analysts' comments, background, byline)

By David Ljunggren

OTTAWA, Aug 16 (Reuters) - Canadian manufacturing sales for June plunged by a much greater than expected 1.5 percent from May, Statistics Canada said on Tuesday, all but confirming that the economy stalled in the second quarter.

The drop -- much bigger than the 0.4 percent decline predicted by analysts -- also appeared to kill off the already minute prospect that the Bank of Canada would raise interest rates this year.

As recently as late July, the central bank had predicted second quarter growth of 1.5 percent on an annualized basis.

That forecast now looks hopelessly optimistic, given a recent string of weak data that shows the economy is struggling to deal with a strong Canadian dollar and weak U.S. demand.

"(Today's report) sets us up for another monthly GDP disappointment and heightens the risks of second quarter Canadian GDP coming in negative. The handoff to the third quarter will also be very weak," said Jimmy Jean of Desjardins Capital Markets.

In a sign of increasing political concern over the economy and market turmoil, the House of Commons finance committee has asked Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney to testify to legislators this Friday.

Statscan will release its figures for second quarter gross domestic product on Aug 31.

The June factory sales figures helped knock down the Canadian currency CAD=D4. At 9:55 a.m. (1355 GMT) it was at C$0.9837 to the U.S. dollar, or $1.0166, down from Monday's North American finish of C$0.9799 to the U.S. dollar, or $1.0205.

June's manufacturing retreat was largely caused by a 6.6 percent drop in sales of petroleum and coal products, reflecting price declines of 2.6 percent and lower volumes as plants shut down for retooling.

Statscan said 15 of 21 industries, representing 77.5 percent of total manufacturing, posted declines. Sales in constant dollars, used for calculating real gross domestic product growth, fell by 1.6 percent.

"That adds to the risk of a contraction in June GDP and an outright contraction in the Canadian economy in the second quarter," said Derek Holt and Karen Cordes Woods of Scotia Capital Economics.

It was the third consecutive monthly fall in manufacturing sales, now at their lowest level since November 2010.

Analysts took some consolation from a 1.6 percent increase in new orders and a 3.4 percent jump in unfilled orders, both pushed higher by strength in the aerospace industry.

"We still expect sales to rebound in the third quarter, as temporary factors restraining auto and energy production are reversed," said David Madani of Capital Economics.

After eight consecutive months of growth, inventory levels were unchanged, remaining at their highest point since April 2009. The ratio of inventory to sales rose to 1.39 from 1.37 in May, the highest level since December 2009.

 

Tue, 08/16/2011 - 12:06 | 1565586 EnglishMajor
EnglishMajor's picture

Channel stuffing by the automakers back in May and June would account for much.

Tue, 08/16/2011 - 22:14 | 1567621 slewie the pi-rat
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...recession off...recession on...recession off...

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