US Economy Remains Consistently OK
US Industrial Production rose by a better-than-expected 0.2% in July, a mellow reading, yet still higher than recessionary numbers. Manufacturing gained 0.4% for the July, the best reading observed in 10 months. Strong showings in automobile production and mining canceled out a 1.9% drop in utilities. Motor vehicle output increased 3.6% for the month, recovering strongly from dismal numbers in the last couple of readings. Eliminating motor vehicle output, manufacturing rose just 0.1%, consistent with the year’s meager, yet positive readings.
The dollar is rising across the board, gaining strength as foreign economies begin to struggle. The dollar has risen 5% against the Euro in August alone, and rose against the yen this morning. If oil prices continue to fall, the dollar should strengthen even more.
