Discuss Detroit Archives - Beginning January 2006 US Industrial Output Show Strong Growth Previous Next
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Username: Ray

Post Number: 680
Registered: 06-2004
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Posted on Thursday, April 27, 2006 - 1:28 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Gov. Jennifer Granholm proclaims today that:
"The president of the United States needs to build a better manufacturing policy," she said. "Are we really going to be a nation that manufactures nothing?"

This certainly echo's the conventional wisdom of Southeast Michigan, which views itself as the victim of a nefarous President Bush and his policy of exporting jobs.

What's funny is that while Jen and her under-educated constituents rail about the de-industrialization of America, US industrial output is booming. Punch in "US industrial output up" in google and you can read numerous articles. I clipped one below. You might also note that global automotive production is rising rapidly with most producers making record profits.

This state will never recover until its people look in the mirror and admit "we fucked ourselves" and stop blaming other people.

Here's the article:

By David Lawder
Fri Apr 14, 1:21 PM ET

WASHINGTON (Reuters) - U.S. industrial production rose 0.6 percent in March as mining and utility output became less volatile, while capacity use reached its highest point in 5-1/2 years, the Federal Reserve said on Friday.


The Fed said March utility output rose 0.5 percent after a large jump in February due to cold temperatures followed a big decline in January driven by warm weather.

Output from the nation's mines rose 0.9 percent after falling 0.7 percent in February, as oil and gas facilities continued their recovery from hurricanes last year, while coal output surged.

Manufacturing output rose 0.5 percent, driven by strong gains in motor vehicles and electronics.

"The 0.6 percent increase in industrial production and 0.5 percent gain in manufacturing production in March shows that the strong industrial rebound that began last fall has momentum," said Daniel Meckstroth, chief economist for the Manufacturers Alliance/MAPI.

Capacity utilization, a measure of how close to full potential factories, mines and utilities are running, rose to 81.3 percent from a downwardly revised 81.0 in February, marking its highest level since reaching 81.5 percent in September 2000.

Wall Street analysts polled by Reuters had expected overall March industrial production to rise 0.5 percent and capacity use to reach 81.4 percent.

The strong numbers are likely to reinforce views among some Federal Reserve policy-makers that tightening labor markets and rising capacity use could create inflationary pressure. Fed governor Donald Kohn said on Thursday the central bank is examining economic data in a "meeting by meeting" approach on whether to continue its rate tightening campaign.

"This report does not add to the case that there's a visible slowing in the economy. It keeps (the Fed) directly on path to tighten in May and leaves the debate on whether they will tighten in June certain to be a very lively one," said Dana Johnson, chief economist at Comerica Bank in Detroit.

"The Fed needs more evidence than they have on hand" to take a more neutral view of interest rates, he said, adding that he believes the slowing housing sector and higher energy prices will cool U.S. economic growth this year.

U.S. financial markets were closed on Friday for the Good Friday holiday.

All major sectors contributed to the March increase in production, with the largest gains in materials and business equipment, both of which increased 0.8 percent. Production of construction supplies rose 0.2 percent after a 0.8 percent drop in February.

Output of durable goods, which are meant to last three years or more, rose 0.7 percent after being flat in February. Motor vehicles and parts production rose 1.5 percent after a 1.1 percent fall in February, while output of computers and electronics products jumped 1.7 percent after a 0.6 percent gain in February.

Capacity use in the manufacturing sector rose to 80.4 percent in March from 80.2 in February, while capacity use at mines was 87.2 percent and utilities were using 85.3 percent of their capacity.

"Manufacturing production grew at a 5.4 percent annual rate in the first quarter and should match or slightly exceed the pace of overall economic growth when the GDP figures are released later this month," Meckstroth said.

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