Is this another case of mixed signals?
Output at U.S. factories, mines and utilities fell unexpectedly by 0.1 percent in August as utilities production declined with cooler weather, a Federal Reserve report showed on Friday.
The experts, studies and statistics are a bit confusing.
You compare.
“The economy has slowed down from what we have seen earlier in the year, but it is still consistent with growth overall,” said Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla.
Is it up or is it down?
Capacity use slipped to a smaller-than-expected 82.4 percent from a revised 82.7 percent in July, the Fed said.
Analysts polled by Reuters were expecting industrial production to rise 0.2 percent and capacity utilization to edge up to 82.5 percent from the previously reported 82.4 percent use rate in July.
Hmmmm. But then again.
Even so, capacity utilization was 1.4 percentage points above its 1972-2005 average of 81.0 percent and 2.1 percentage points above its level in August 2005.
Watch out for whiplash.
Manufacturing output was unchanged in August as a rise in the production of durable goods was offset by a decrease in nondurables production, which included slides in output of textiles, paper, and plastics, the Fed said.
And back again...
Mining output was down 0.3 percent due to a drop in oil and gas extraction, while utilities production slipped 0.8 percent on a 1.1 percent decline in electric utility output.
I think the only point I'm trying to reinforce is the unpredictability of economic forecasting.
Be careful about confusing sand with stone.
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