Industrial Production indicates that the “recovery” ended in 2014

It´s well known that manufacturing makes up less than 20% of the economy while the service sector, which gets far less attention, contributes much more to the economic pie. However, in contrast to services, which grows steadily irrespective of ‘wind strength’, manufacturing is highly sensitive to changes in interest rates and demand. That´s the reason Industrial Production is widely used in forecasting the economy. The Fed´s “tightening rhetoric” that began in mid-2014, quickly had a negative impact on industrial production and capacity utilization. Total Industrial Production fell on the heels of the mining slump. Manufacturing just stagnated. In the spring…

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