Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       

Blog Home
   Brian Wesbury
Chief Economist
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
  Industrial production was unchanged in April
Supporting Image for Blog Post

Implications:  Industrial production took a breather in April coming in unchanged, which was below the consensus expected gain of 0.4%.  While mining and utility production both increased for the second straight month, manufacturing declined 0.4%.  However, all of the drop in manufacturing was due to a 8.9% decline in auto production.  Given temporary shortages of parts related to the earthquake, tsunami, and nuclear/electricity problems in Japan, some US automakers are shifting their traditional summer shutdowns into the spring.  As a result, auto production will slip in Q2 and then surge sharply again in Q3.  So for the next few months, we will continue to focus on manufacturing excluding autos in order to figure out the underlying trend.  This measure of output was up 0.2% in April and is up 4.5% versus last year, so no problems there.  High tech equipment continues to grow, up 2.3% in April and, despite downward revisions for prior months, up at a 23.1% annual rate in the past six months.  Production is going to continue to move higher and will likely keep being led by business equipment.  Inventories are low, corporate profits are at a record high and so is cash on the balance sheets of non-financial companies.  In other recent news on the manufacturing sector, the Empire State index, a measure of manufacturing activity in New York, declined to a still solid +11.9 in May from +19.6 in April, suggesting continued growth in the factory sector, but not quite as quickly as earlier this spring.

Click here for the entire report.
Posted on Tuesday, May 17, 2011 @ 10:50 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.