Don't Be Left Behind

Economic growth occurred through January 2012, as evidenced by the US Industrial Production data released by the Federal Reserve this morning. The actual monthly Index of our nation’s industrial output rose from the prior month and is now at its highest point since August 2008. Additional growth is expected.

The chart shows the current US Industrial Production trend status using rates-of-change. The 12/12 rate-of-change shows that the annual average index is a very respectable 4.0% higher than one year ago. The downtrend in the 12/12 means a slowing-growth process is still in place for the economy, but we aren’t headed for recession anytime soon based on the leading indicators and the mostly horizontal movement evident in the 1/12 rate-of-change.

The 1/12 shows that the January 2012 monthly Index came in 3.4% higher than the year-ago figure. Look back to 2004 through 2007 and you will see that a 3.4% year-over-year rate of ascent is quite sustainable and represents a period of opportunity for individual businesses seeking to expand.