. . And Industrial Production isn’t too shabby, either
Industrial production, the King of Coincident Indicators, was reported for October this morning in addition to real retail sales, discussed already in my last post. – and it was also quite positive.
Total production increased 1.6% during the month, and manufacturing production increased 1.3%. This was the biggest monthly increase for total production since March of this year, and except for that month, also the biggest increase in over a year:
Both total and manufacturing production have returned to being higher than their immediate pre-pandemic levels, and also the highest since the onset of the pandemic:
The former is up 0.3% compared with February 2020, and the latter up 1.6%.
I wrote yesterday that, despite my real concern with inflation going forward, my array of indicators did not forecast a recession, and this morning’s reports on both retail sales and industrial production confirmed that point of view.