Industrial Production Up 13% in July

Consumer durable goods industrial production in July was up 13.1% compared to July 2009. This is the seventh straight month of growth in industrial production; however, July was the first month where the rate of growth slowed compared to the previous month. The index dropped back down to 78.8, but a fall in industrial production in July is a normal occurence as the automotive industry (and others) typically has significant plant closings for maintenance. Other economic data shows that the economy could be slowing down again.

So, a slowing rate of growth in industrial production could be a confirming signal that indeed the economy is beginning to slow. This would make sense because much of the increase in production was due to inventory replenishment and not expanding consumer spending. If the growth rate of industrial production continues to slow in future months then it is quite possible that the metalworking industry will be in for another slow down. For more information on industrial production go here.