Industrial Production in the U.S. Probably Stalled in January

[Judi Lynn]

Industrial Production in the U.S. Probably Stalled in January
By Joe Richter

Feb. 15 (Bloomberg) -- Industrial production in the U.S. probably remained steady in January as companies held off on new orders while continuing to pare inventories, economists said before a Federal Reserve report today.

Output at factories, utilities and mines was unchanged last month after gaining 0.4 percent in December, according to the median estimate in a Bloomberg News survey of 81 economists. A separate Fed report later today will show manufacturing in the Philadelphia area grew at a slower pace this month, according to economists surveyed.

Supplies of products ranging from automobiles to building materials have backed up in dealer lots and warehouses in recent months, prompting companies to rein in production as they sell from existing stockpiles. Such efforts may soon bring supplies closer in line with demand, signaling a pickup in production later this year, economists said.

``Manufacturing looks a little bit anemic right now, and I think that's consistent with the general slowdown we're seeing in the economy,'' said Ethan Harris, chief economist at Lehman Brothers Holdings Inc. in New York. ``Firms are starting to get a handle on the inventory overhang, though, so manufacturing may pick up slightly in the year ahead.''
(snip/...)

http://www.bloomberg.com/apps/news?pid=20601086&sid=aFSaxPozr7aM&refer=news

[Javaman]

1. however manufacturers will be eager to move their inventory rather than

let it sit. So I see a fire sale of materials heading for China. I love watching our trade deficit grow.

Sigh.