Today's release of the industrial production and capacity utilization data ("V-shaped" recoveries?") indicated an improvement in manufacturing activity. Industrial production rose to 93.4% and exceeded expectations of 93%. Although motor vehicle production was up 10%, the Federal Reserve release notes indicate:
...manufacturing production excluding motor vehicles and parts advanced 0.6 percent. The output of mines rose 0.9 percent, and the output of utilities increased 0.1 percent.
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| From The Blog of HORAN Capital Advisors |
In addition to an improvement in industrial production, the Federal Reserve reported an increase in capacity utilization. Capacity utilization increased to 74.8% versus expectations of 74.5%.
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| From The Blog of HORAN Capital Advisors |
The demand for truck drivers is on the increase with driver shortages now a reality. In essence, these trucks are not driving around empty and are supporting the distribution of more goods due to the improving economy. This improving anecdotal evidence seems to indicate an environment where the economy is improving.
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