“Recession canceled: US industrial production jumps to record a high.” This was the title of this morning on the Zero Hedge website. Too often overlooked, industrial production is an indicator of the crucial supply of the health of the economy. The February index increased to 104.2, barely exceeding the previous file recorded during Donald Trump’s first mandate at the end of 2018. When you look under the hood of the production index, it’s even better.
The manufacturing increased by nine tenths of 1% led by motor vehicles and parts that jumped 8.5% for the month. High -technology power increased by 1.4% in February and is now up more than 26% at an annual rate in the last 3 months. And then corporate equipment, which is so important, increased by 1.6% in February and almost 24% per year in the last 3 months.
Trump’s former advisor, Kellyanne Conway, unpacking pressure to extend the law on tax reductions and jobs on “Kudlow”.
The giant gain in the February commercial equipment may well be motivated by the expectations of an immediate expenses at 100%, including the construction of factory – which is a new wrinkle to count on the pro -growth program of Trump. It is also possible that foreign investments add a couple to the manufacturing and equipment numbers – in front of the April 2 announcement of Trump’s reciprocal trade policy.
The problem here is that many national companies may have been at the top of the commercial policy by storing foreign imports in January – which would technically depress GDP. But when you see the production of production, manufacturing and corporate equipment, it fundamentally shows Side of the healthy offer of the economy. And the side of the demand was also quite good in February, because the The basic retail number has jumped 1% and now operates 3.8% per year in the last 3 months.
In addition, the accommodation begins in February more than 11%in February. The accommodation has been in crisis in recent years and the Trump administration has embarked on a major deregulation plan to release land and prevent Blue State localities from stifling any new construction. But at least Mortgage rates have dropped Of almost half a point at 6.6% – and that could stimulate something of a housing rebound. And moreover, the readings of inflation for February were all tamed.
The host of “Moore Money”, Steve Moore, says that he remains “quite optimistic” on the economy and breaks down the impact of the extension of Trump tax reductions on “Kudlow”.
Of course, liberal journalists have pushed a quote The story “Prices is a disaster”. We are going to a recession, they say. No waiting for one minute, inflation will go up to the sky. No suspension, these are prices that destroy the stock market. In fact, all of these unproven theories are likely to prove to be very false. Even if the Liberals try so hard to stick it to Trump.
Oh, a last thought: the Republicans in the House and the Senate must move on the tax reduction program. This will flow once for all recessionists.
