THE WASHINGTON POST: FACTORIES PRODUCE HOPEFUL SIGNS
The Washington Post’s Neil Irwin defines growth in Industrial Production as the strongest evidence yet that the economy took a step forward this summer.
The Washington Post Excerpt:
The nation’s factories boosted their output in August for the second straight month, the latest confirmation that an economic expansion is likely underway. Meanwhile, consumer prices rose last month, but mainly due to higher prices for gasoline.
Industrial production rose 0.8 percent last month, the Federal Reserve said Wednesday, following a 1 percent rise in July. The July increase had been the first since October 2008, and the report is among the strongest evidence yet that the economy made a shift this summer from contraction to expansion, at least as measured by gross domestic product.
The industrial sector, meanwhile, was operating at 69.6 percent of its capacity, up from 69 percent in July. That reflects more idle factories being put back to work, another positive sign.
The stock market rose on the solid economic data, and has been up for eight of the last nine trading days. The Dow Jones industrial average rose 108 points, or 1.1 percent. The broader Standard & Poor’s 500-stock index rose 1.5 percent, and is up 7.4 percent since Sept. 2.