Miserable Manufacturing

Recent data have eliminated any doubts that the U.S. manufacturing is in a recession, with the Empire State manufacturing index now at recessionary levels. Moreover, nationwide industrial and manufacturing production have both declined by over 0.5% for two months in a row, and capacity utilization is falling quickly, from 80.2% in April to 77.8% in December. As a result, investment in plant and equipment will necessarily follow suit.