Industrial Production and Capacity Utilization Numbers Indicate Shallow Recession

Calculated Risk’s take on this morning’s industrial production and capacity utilization data: A relatively shallow recession…so far:

The decline in capacity utilization suggests that the economy could be in recession. Even more important is that industrial production is a key to the depth of the economic slowdown. So far exports have been strong, and the decline in industrial production has been mild. If the global economy slows significantly (“recoupling”), then industrial production and capacity utilization could fall sharply leading to a deeper recession.

Graph courtesy of Calculated Risk

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In