Industrial production has shown some signs of weakness as of late as its year-over-year growth rate slows. However, this could be partly attributed to the grounding of the Boeing 737, which has experienced two crashes since the middle of 2018. Nonetheless, the overall health of the economy remains relatively strong with unemployment near all-time lows and GDP growing at a strong 3.20%, yet does show some signs of slowing in the CFNAI three-month average and industrial production.
Comments on this week’s report:
- Treasury spreads have widened but still remain historically very narrow with the 10-year minus 2-year sitting at 0.26% and the 10-year minus 3-month sitting at -0.07%.
- Industrial production has slowed as its year-over-year growth rate dropped from 2.12% to 1.32% and now indicates a moderate level of risk.
- The core Consumer Price Index’s (CPI) has grown at a stable rate of 2.13% over the past year, up from 1.99% a month ago.
- The amount of commercial loans being issued has slowed as its year-over-year growth rate dropped from 7.39% to 6.78%, yet still indicates a low level of risk.