U.S. industrial production has risen at a 8.8% annualized pace since hitting bottom in June '09. At this pace industrial production will have completely recovered to its former highs in 12 months. That's fairly impressive given the persistence of the view that we are in a "jobless recovery." It's not a jobless recovery of course, since the private sector has already added more than a million jobs this year. And with industrial production increasing like this you can be sure that many more jobs will be created in the months to come. Furthermore, I would add that the pace and the magnitude of the current recovery both exceed that of the recovery from the 2001 recession. I just don't see why the gloom and doom persists.
Boeing announced ANOTHER production increase today. Last month they announced they would produce 34 B737s per month beginning in 2012. Today they increased that target to 35 per month, citing options being exercised and new orders for the plane. These production increases represent order increases for potentially tens of thousands of suppliers globally all the way down the chain to the mining of the raw materials.
ReplyDeleteBloomberg reported yesterday that both American Airlines and Delta were seeing significantly increased business air travel. Clearly the air travel industry isn't seeing another recession looming.