Source: Economics Group of Wells Fargo Bank, N.A.Summary With industrial production having fallen in six of the past eight months, the largest of which being November and December, it is evident that the manufacturing sector is already in recession. To the extent that there is good news in this, it is that firms are playing it smart and not overproducing. Wise to the Game, U.S. Manufacturers Playing it Smart Overall industrial production fell 0.7% December while November’s initially reported decline of 0.2% was tripled to a decline of 0.6%. This is not an encouraging report for industrial activity particularly for the manufacturing sector which comprises roughly three quarters of all output and where the decline in December was a larger 1.3%. Mining output slowed a comparatively modest 0.9%. The arctic chill in December boosted utility output which offset some of the weakness in manufacturing. READ FULL ARTICLE>>
