But economic concerns still loom.
So check it out, we’ve got another economic indicator out. And this one – unlike another recent one – is good!
The Federal Reserve said Tuesday that U.S. manufacturing output rose by 0.6% in August on the back of machinery and primary metals production. That may sound like only a little, but it beats a forecast returned by a poll of economists conducted by Reuters. From the story:
Motor vehicles and parts production fell 1.0% last month after increasing 0.5% in July. Excluding motor vehicles and parts, manufacturing output increased 0.6% in August after declining 0.5% in the prior month. Machinery output rebounded 1.6% after dropping 1.7% in July.
The jump in manufacturing output in August together with a 1.4% rebound in mining, lead to a 0.6% increase in industrial production last month. That was the largest gain in industrial output since August 2018 and followed a 0.1% dip July. Industrial production rose 0.4% on year-on-year basis in August.
Capacity utilization rates were up too. It’s a nice rebound in fortunes from the recently released ISM Manufacturing index, which signaled a further slowdown in economic activity.
So while its numbers aren’t astounding, manufacturing isn’t completely tanking. But the longer-term forecasts aren’t great, either. MarketWatch asked around, and those it spoke to said that the negative trend is likely to continue.
We’ve said it before and we’ve said it again: Infrastructure spending is the right way to turn this around.