The latest industrial production numbers were released this morning and they came in below estimates with the prior month revised down. The year-to-year rate of change in industrial production is now -1.75%. In the post WWII period, industrial production has never contracted by 1.75% or more without that contraction being associated with a recession. One data point does not a recession forecast make. And this time could of course be different as the industrial sector is a much smaller part of the economy than it was decades ago, but investors should have their antennae up sensing for signs of more widespread trouble.
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
- Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
- The Mania in AI Stocks Has Arrived - May 25, 2023
- The Wisdom of Sam Zell - May 24, 2023