US factories produce more, inflation is in check

[kcshocker11]

Link

The Federal Reserve said Wednesday that output at the nation's factories, mines and utilities rose 0.8 percent in August. Economists surveyed by Thomson Reuters expected a 0.6 percent increase. Last month's gain marked the second straight increase after the global recession dried up the appetites of customers worldwide.
"The back to back gains in industrial production provide further evidence the recession ended around July," Joseph LaVorgna, chief U.S. economist at Deutsche Bank, wrote in a note to clients.
Meanwhile, the Labor Department reported that the so-called "core" Consumer Price Index, which excludes volatile food and energy prices, rose slightly over the 12 months ending in August. That is well within the Fed's comfort zone and means the central bank faces little pressure to raise its benchmark interest rate, a step it takes to ward off high inflation.

Though this is good news I know some older folks who could use a little inflation to prop up cd rates. 8)

[SB Shock]

It can be good news or bad news depending on perspective. Companies are/have been laying off significant number of people but expecting the same or better output in their product.

Which to management means great news, more profits. For the layed off workers it is bad news because it points to what the government has been saying - unemployement is not going to come down anytime soon (why hire them back if 70% can do the job of 100%).

Bad new for the worker (and the consumer) because choices are having to be made to meet management goals. You don't have time to do everything and so somethings can get overlooked - meaning ultimately poorer quality product.

I have been told by somebody who manages money that the U.S. is about 3 years away from rampant inflation due to the Government running their printing presses full steam. He said it was going to get ugly and depending on how the government handles it - it could be a short but painful period if they do the right thing. If they don't - well it will get very very ugly.

[1979Shocker]

Even though the recession seems to be over, unemployment isn't suppose to go down anytime soon.

From that same article.

Fed Chairman Ben Bernanke said Tuesday the recession is likely over, though he noted that the economy isn't likely to grow fast enough to lower unemployment anytime soon. Most economists expect the jobless rate to top 10 percent next year, up from its current 9.7 percent.

Oh, and kc, could you fix your link so we don't have to scroll way to the right?

Like this.

US ind. production better-than-expected in August

Thanks.