Capacity Utilization and Industrial Production Cliff Diving

[RedEarth]

From Greg Robb at MarketWatch: U.S. Dec. industrial production down 2%, down 11.5% in Q4

Capacity utilization ... fell to 73.6% from 75.2%. This is the lowest level since December 2001. Industrial output fell at an 11.5% rate in the fourth quarter.



This is a very sharp decline in industrial output, and industrial production is a key to the depth of the economic slowdown. Up until recently export growth had been strong, and the decline in industrial production had been mild. Now, with the global economy slowing sharply, industrial production and capacity utilization are falling off a cliff.

Also the significant decline in capacity utilization suggests less investment in non-residential structures for some time.

http://www.calculatedriskblog.com/2009/01/capacity-utilization-and-industrial.html

[roamer65]

1. I predict we will go well below the 1981-1982 recession low this year.

The cutbacks in production have only started and we are only 2% away from the 1981-1982 low point.

[JohnWxy]

2. very important statistic. Thank you Phil Gramm, Republicans for deregulation - the CFMA - the

legislation that destroyed an economy and will result in nationalization of banking industry to save the economy.


the wonders of Deregulation