Industrial production jumped 1.0% in February. It supports the idea business activity remains strong.
According to the above graph growth in production over a 12-month period has not weakened enough to support the idea we are close to a recession (click on the graph to enlarge).
Implications.
The economy is still too strong to force the Fed to lower short-term interest rates.
The strength of the manufacturing sector will place upward pressure on commodities. This is bad news for bonds.
More on this on www.peterdag.com.
George Dagnino, PhD
Editor, The Peter Dag Portfolio on https://www.peterdag.com/
Since 1977
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