Industrial production beat expectations and increased 0.6% in September vs. August, the best monthly comparison since February, the Federal Reserve reports. The year-over-year change turned higher as well, with output expanding 3.2% last month vs. a year earlier—the biggest annual gain since last November. But the upside surprise was due mostly to factors other than manufacturing, which rose a sluggish 0.1% last month. Is the mismatch a sign of trouble ahead? When ever the cyclically sensitive manufacturing sector wobbles, there’s always room to wonder about what comes next. It’s too early to say, of course, although today’s mixed report won’t be easy to dismiss until or if we see better numbers in the economic updates to come, starting with tomorrow’s delayed retail sales numbers for September.
Daily Archives: October 28, 2013
Where’s Inflation When You Need It? Or Do We Need It?
Some economists say that more inflation is (still) just what the American economy needs to escape from a half-decade of sluggish growth and high unemployment. A New York Times article over the weekend advises that “as Federal Reserve policy makers prepare to meet this week, there is growing concern inside and outside the Fed that inflation is not rising fast enough.”