Industrial Production

By Spencer

Industrial output rose 0.8 percent in August, following an upwardly revised increase of 1.0 percent in July. Production in manufacturing expanded 0.6 percent in August, and the index excluding motor vehicles and parts increased 0.4 percent. The gain in July for manufacturing was revised up 0.4 percentage point, to1.4 percent; in addition, factory output for April through June is now somewhat less weak than reportedpreviously.

Compared to other cycles the first two months rebound appears normal, neither weak nor strong.

Over the last three months auto and light truck output was 3.97 M, 5.74 M and 6.42 M.
This compares to peak production of around 12.0 million. Of course, the US no longer has the
capacity to build that many cars and trucks.

With hours worked in manufacturing unchanged last month this implies that the recently reported surge in manufacturing productivity is continuing.

Chart added to demonstrate point made in comments.