Thursday, July 15, 2010

Production Pullback: Industrial Production June 2010

Today, the Federal Reserve released their monthly read of industrial production showing continued yet flattening growth with total industrial production increasing just 0.07% from May but remaining 8.22% above the level seen in June 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.