Skip to comments.Industrial output jumps in August on auto strength
Posted on 08/16/2011 7:04:19 AM PDT by Free Vulcan
WASHINGTON (MarketWatch) The output of the nations factories, mines and utilities surged 0.9% in July as auto assemblies rebounded and consumers turned on their air conditioners, the Federal Reserve said Tuesday.
The gain, the biggest since last December, was in line with economists expectations. The key question is whether the increase can be sustained in future months.
Output in June was revised up to a 0.4% gain from the prior estimate of a 0.2% gain and output in May was also revised higher.
(Excerpt) Read more at marketwatch.com ...
I’m of the opinion that output doesn’t equate to sales here...It’s my opinion (and I know what those are worth) that they’re building inventory.
Interesting take. I was not aware of the used car situation.
channel stuffing should not count. Also, should the output figures be “seasonally adjusted” assuming this reflects more of a ramp up for the new model year than a surge in demand?
Are these figures referring to PRODUCTION or PURCHASING?
This is the time of year for ‘changeover’ for all auto companies.
Therefore, PRODUCTION rises. Those cars ain’t sold yet!!!
The discounts on last year’s models bring some upticks, but with so many out of work, who is buying???
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