U.S. industrial production rose in August at 0.2%, almost justified forecasts. According to published by the Fed data, the growth of the previous month was 0.6%. But overall, this oscillation around zero, which is unlikely to help make a significant contribution to improving the structure of employment. Although the increase year to year is 6,3%, a year earlier in August, was slowing to 8.9%, and even the year before another 3,7%. That is, the current recovery is still very far from a return to peak levels (see graph seasonally-adjusted index). Nevertheless, capacity utilization slowly recovered, accounting for 74,7% in August against 74.6% in July, the normal level of 81% before the crisis and the bottom 68% in June of 2009. but even this weak pace of losing momentum, nearly stalled in recent months.
Earlier published data on activity in manufacturing industries from the New York Fed Empire Manufacturing. This report confirmed the almost complete inhibition of growth. The indicator slipped to 4.1 points, while expected to increase to 8.7 from 7.1 the previous month. If the data on the Empire used as a leading indicator, we can expect further decline in production in the next month, as published today details related to September.
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