Industrial Production Fell 0.4% in June

by Marilou Moursund on July 15, 2009

in Economic Indicators,Investment Strategies

The market is up today.  Intel reported better numbers than expected, and while Industrial Production was negative, it fell at the lowest rate in eight months.  It also fell less than the consensus expectation of -0.7%.

However, capacity utilization also fell to a new low of 68%.  As CalculatedRisk points out,

In addition to the weakness in industrial production, there is little reason for investment in new production facilities until capacity utilization recovers.”

Just like the the current recession started in a rolling fashion through various sectors, we think that the recovery will be also be sector specific.  Indexing will be a tough way to make money.

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