Gary's Blog

Thursday, September 17, 2009

Production UP, Inflation DOWN

For the second month in a row, the output of the U.S. factories, mines and utilities posted widespread gains. Up 0.8% in August, even without autos and auto parts, the index was up 0.4%. And the future looks bright in this area too, because companies cut their stockpiles by a record amount in the second quarter of this year. Time for catchup.

As they say, what goes up... The reverse is also true, as we all know, in the economy.

It looks like manufacturers are leading the country out of recession.

Meanwhile inflation is very low; the "core" CPI, which excludes food and energy, rose only 0.1% in August, and only 1.4% for the past year. This is the smallest such increase in more than five years.

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