The first chart provides a view of U.S. industrial production (the total output of U.S. factories and mines) over the past three decades. This chart puts the current downturn in industrial production into historical perspective. The second chart shows U.S. industrial production has had no growth over the past 10 years (talk about “lost decade”). Essentially, the output of U.S. factories and mines was no larger in February 2009 than it was 10 years ago.
The negative trend in these charts also represents the deflationary pressures that are currently present in the U.S. economy. This trend is what the Federal Reserve (Fed) is trying to fight with its loose monetary policy. The Fed has clearly decided that reversing this trend (in the near term) is more important than the risk of inflation.
Tomorrow’s post will chart industrial production for communications equipment and semiconductors. Semiconductor output is particularly important because it is often used as a leading indicator for economic activity. Check in tomorrow to see what it is telling us.
Data Source:
> U.S. Federal Reserve. G.17 Industrial Production and Capacity Utilization. March 2009 release, and The 2008 Historical and Annual Revision.
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Dear Sirs:
I am quite interested in different topics concerning American economy. Very specifically, I am interested in the US industry declining during last decades some people speaks about. Could you help me looking for data information to check it?
I mean:
… Industrial Production data from the FED: It looks like during the last decade, industrial production didn´t improve, but it´s not the same as declining.
.. I have received some information concerning the declining industry in US Midwest and Northeast. They use to explain it not as a decline of the US industry, but as a geographical redistribution, as industry has moved to the US South.
.. Industry jobs numbers have declined, but it could be just a direct effect of productivity improvements in industry.
Anyway, I think the opinions about the overall US industry declining is shared by many different and competent opinions, and looks quite congruent with the US economy overall evolution.
Please, could you help me about what kind of statistic information could I use/check to verify this US industry decline?
I am writing a book about industry policies and this could be very helpful for me.
Thank you very much, (and, please, excuse my bad english)
Adrian Zelaia
(Spain)
Comment by Adrian Zelaia — July 5, 2009 @ 1:42 am
The Federal Reserve’s G.17 report is a good place to start. Here’s a link: http://www.federalreserve.gov/releases/G17/Current/default.htm. Also, the Bureau of Economic Analysis has a lot of good general economic data on the U.S. Here’s a link to their tables: http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=N. Good luck with the book.
Comment by admin — July 5, 2009 @ 5:19 pm