Wednesday, November 17, 2010
October Industrial Production Report Points to Continued Solid (Not Spectacular) U.S. Recovery
"Manufacturing made good progress towards its recovery in October. In total, it has now recovered about half its recession losses; however, the big push from inventory rebuilding is mostly behind us, so further gains in 2011 will be challenging. Nevertheless, with the election results and QE2 announced - I believe there has been a reduction in business uncertainty and that the climate is improving. I look for light vehicle sales in the U.S. to be stronger in 2011 than consensus which will help lead related segments to higher output. All-in-all, the October industrial production report was solid and provides hope that next year will be stronger than 2010," Krause concluded. "I remain more bullish than bearish about the U.S. economy."