Tuesday, August 17, 2010

Production Pullback: Industrial Production July 2010

Today, the Federal Reserve released their monthly read of industrial production showing continued growth with total industrial production increasing 1% from June remaining 7.74% above the level seen in July 2009.

While this report appears to argue favorably for a continued recovery, it's important to note that massive government stimulus played an important role in generating this trend.

With the the stimulus now waning, it will be important to watch the trend in industrial production to see how sustained the growth truly is.