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 Rose 0.4% in August
Posted Under: Data Watch • Industrial Production - Cap Utilization
Supporting Image for Blog Post


Implications:  Industrial production extended its gains in August, posting its third consecutive month of growth to set a new record high.  Industrial production data counts "units" of output, and is therefore a proxy for "real" growth.  Taken as a whole, the August data suggests the recent strength in real GDP growth is sustainable.  Looking closer at the details of today's report shows that manufacturing, which makes up the largest part of overall production, rose 0.2% in August.  However, the gain was entirely due to a 4.1% jump in the volatile auto production series.  Excluding autos, manufacturing growth would have been flat, according to the Federal Reserve.  That said, in the past year manufacturing activity is up 3.2%, while manufacturing ex-autos is up 2.8%, both of which represent the fastest 12-month increase since 2012 for their respective series.  This demonstrates that the strength in overall manufacturing isn't just about the recent surge in auto production.  Meanwhile, mining grew for the seventh month in a row to eclipse its prior peak in 2014, before a decline in oil prices reduced activity.  Mining is now up 14.2% from a year ago, its largest 12 month gain since 1959!  This comes as new information from the EIA shows the United States has just surpassed Russia and Saudi Arabia as the largest producer of crude oil in the world.  Notably, this is all being done with roughly half the number of drilling rigs as before the 2014-2015 oil price crash, demonstrating the massive improvements in productivity that have occurred in just a few years.  

Click here for PDF version

Posted on Friday, September 14, 2018 @ 11:53 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 © 2023 All rights reserved.