SOURCE: Chart of the Day
The average trend in industrial production during the first 24 months of every economic expansion from 1954 to 2000. For comparison, the chart also includes industrial production for the expansion that began in March 1991, as well as the current expansion that began in November 2001.
The chart shows the present anemic economic expansion. Chart of the Day notes that “industrial production is one of a handful of indicators that the NBER uses to date recessions and the overall trend has been down since July 2002.”
This chart provokes thinking along two specific lines: First, this recovery is one of the most feeble post recessionary periods we’ve seen since WWII. Secondly, from a broader perspective, it confirms the overall trend of the country’s economic base moving away from manufacturing and towards service oriented businesses. (See Not-so-Random Items below for a variety of articles on this topic).