Manufacturers Alliance/MAPI measures blip in U.S. industrial production

Manufacturers Alliance/MAPI, which has issued a report on Latin America’s remarkable economic resilience, has some good things to say about U.S. industrial production, too.

According to the think tank’s chief economist, Daniel J. Meckstroth, a large majority of manufacturing industries expanded here in November.

“The Federal Reserve reported that industrial production increased 0.4 percent in November and manufacturing production expanded 0.3 percent,” he said.

Meckstroth also noted that 14 of the 20 manufacturing industries posted growth, with the only major declines coming in textile and product mills, and motor vehicles and parts. The decline in motor vehicles production was the result of inventory rebalancing and not a sign of weakness in the motor vehicle recovery, he added.

“The November industrial production report shows that the manufacturing sector is decelerating in its pace of growth, consistent with the pace of growth in the overall economy,” said Meckstroth. “Manufacturing production grew at a 9.4 percent annual rate in the second quarter of 2010 when GDP grew 2.5 percent, and manufacturing production increased at a 4.1 percent annual rate in the third quarter when overall GDP grew 2 percent. It now looks like manufacturing production and GDP will increase about 2.9 percent in the fourth quarter of 2010. The manufacturing recovery is widespread and progressing at a moderate rate.”

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