I just had to post this somewhere: the best economy ever.
Output up, surprising Street
But capacity utilization rate continues to drop, indicating further efficiency
May 15, 1998: 10:03 a.m. ET
Industrial output
up 0.2% - April
17, 1998
Output takes a
breather - March
17, 1998
The Federal
Reserve
NEW YORK (CNNfn) - The nation's factories
continued to operate more efficiently in April,
increasing production while still operating at their
lowest level in two years, the Federal Reserve
reported Friday.
Industrial production grew 0.1 percent last month,
due in large part to increased activity in the auto
sector. Economists had been estimating a drop in
output of 0.2 percent.
"The domestic economy is very strong and these
numbers are yet another indication of it," said James
Bianco, director of research at Bianco Research.
Yet, capacity utilization -- which measures the rate
at which factories operate -- fell to 81.9 percent. That
reading matches the low reached in March 1996.
In fact, capacity utilization has fallen consistently
since the beginning of the year despite the
stronger-than-expected 4.2 percent growth in gross
domestic production in the first quarter.
Auto and light truck assembly production rose 3
percent in April, compared to other sectors such as
petroleum, which inched up 0.6 percent. Auto
production, however, remained below the 1997
year-end level.
Activity also increased in computers, home
appliances, carpeting, semiconductors, lumber,
furniture, rubber, plastics and communication
equipment. However, production fell for tobacco,
cigarettes, chemicals, paper and aircraft. |
