Thursday, September 17, 2009

The Auto Rebound... Now What?

More on yesterday's industrial production jump. The power of government intervention (i.e. Cash for Clunkers). St. Joe News with the details:

Industrial production rose in a fairly broad-based pickup in August, according to the Fed data. The central bank also said production jumped 1 percent in July, twice as much as originally reported. Car manufacturing drove that gain.

Factory output — the single-biggest slice of overall industrial activity — also rose for the second straight month. It posted a 0.6 percent gain in August, following a 1.4 percent rise in July.

Auto production led the way, rising 5.5 percent last month due mainly to the government’s Cash for Clunkers program. That followed a whopping 20.1 percent gain in July.

It will be interesting to see the figures for September.

Source: Federal Reserve