Friday, August 14, 2009

Capacity Utilization Jumps from 17.4% Increase in Automotive Production

The good news... a 0.5% jump in industrial production and an increase in capacity utilization. The bad news... capacity utilization jumped to levels last seen... in April (i.e. not much) even with the MASSIVE 17.4% increase in auto production due to the cash for clunkers program.



And the update of the capacity utilization vs. CPI chart, which shows CPI may be bottoming in a few months. Details of this analysis can be found here.



Source: BLS / Federal Reserve