Wednesday, February 17, 2010

Industrial Production Increases (again)

From the Federal Reserve:

Industrial production increased 0.9 percent in January following a gain of 0.7 percent in December. Manufacturing production rose 1.0 percent in January, with increases for most of its major components, while the indexes for both utilities and mining advanced 0.7 percent. At 101.1 percent of its 2002 average, output in January was 0.9 percent above its year-earlier level. The capacity utilization rate for total industry rose 0.7 percentage point to 72.6 percent, a rate 8.0 percentage points below its average from 1972 to 2009.

Let's take a look at the data:

Click for a larger image

Note that overall production and capacity utilization has increased 6 straight months. Also note that last month all industries increased overall production and capacity utilization.

Also note that -- with the exception of construction -- we've had a majority of months show an increase for both overall production and capacity utilization for all industry groups and market groups. In short, the above chart is clear: things are getting better.

Above is a chart of overall industrial production. Note how it graphically shows how the number is improving.

Click for a larger image

Finally, note that capacity utilization is increasing as well.