Sunday, January 24, 2010

Industrial production update

Industrial production continues to rise all over the globe. Levels are still depressed, of course, but on the margin we see distinct improvement across the board.


Rick said...

Interesting chart. In other words, industrial output in the Euros and Japan was hurt worse than the US. On the other hand, the US industrial output has "recovered" back to its 2001-2002 recession level. I wonder how much of this realignment is structural since the chart does not show industrial output in Asian and Latin American nations like China, Korea, Brazil, etc.

Scott Grannis said...

Good question! A similar series on industrial production is not available for every country, but I checked Brazil's, and it has rebounded hugely. As of Nov. '09 it was only 6% below its high of Sep. '08. Between Sep. '08 and Dec. '08 it plunged 20%. It has since risen by almost 20%, staging a very impressive recovery. India's industrial production barely suffered at all, and is trending ever-higher.

If I had to generalize I would say that older, more established and advanced economies took a serious hit from which they are still recovering. Younger, developing economies, including China, Brazil and India, took a hit but have by and large completely recovered.