Thursday, July 9, 2009

May Industrial Production

Kudos to Daily News for capturing the essence of the May industrial production data:

It is true that the decline was somewhat larger than expected, but once you adjust for seasonality and working days, you end up with a 1.5-2% mom rise, which points to a slow recovery.

When you look at the sectors, you see that there is mixed performance at the sectoral level, which, after the across the board sharp falls in 1Q, is a positive sign as well. looking at the main sectors (below) also reveals mixed signals.

While the rise in capital goods is promising (but still long way to go), the recovery in intermediates has stalled. And while the durables have shown consistent rises in the last two months, nondurables has taken a fall in May.

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