Don Norman reports that manufacturing production fell in August. Some of the production loss was due to Hurricane Isaac but the fact that the decline was so widespread across manufacturing industries suggests underlying weak activity. Manufacturing production surged in January and February but has since been up and down with very little net growth. Production is forecast to increase at only a 0.9 percent annual rate in the second half of 2012 versus the first half of this year.
MAPI had forecast decelerating manufacturing growth, so our view on the outlook is confirmed. Dr. Norman also discusses the latest statistics for the manufacturing labor market, orders, production by industry, factory utilization, prices, and trade.
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