Total capacity utilization declined again this month, signaling continued weakness in the manufacturing sector. Despite political claims of a ‘manufacturing comeback,’ total industrial production remains stagnant, experiencing monthly declines. The peak in total capacity utilization during the 2018 shakeout, even with Powell’s rate cuts to zero, indicates ongoing challenges. The ‘lockdowns’ and pandemic-related distortions provided a lifeline for asset classes to navigate severe recessionary conditions, while construction spending on manufacturing shows signs of rolling over.
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Total capacity utilization had peaked even w/Powell cutting to zero again during 2018 shakeout. The 'lockdowns' & pandemic smoke-in-mirrors gave the asset class a needed lifeline/cover to purchase their way out of a severe recession. pic.twitter.com/5wbysQGwcC
— Don Johnson (@DonMiami3) February 15, 2024
Construction spending on mfg looks like it could rolling over as well. pic.twitter.com/6c8jaWpVxt
— Mr.Awsumb (@MrAwsumb) February 16, 2024
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