Larry Kudlo: Was the so -called stagnation ended?

“The recession has been canceled: American industrial production jumps for high registration.” This was the title of this morning on Zero Hedge. It is often ignored, industrial production is an important indication of the display aspect of the health of the economy. The February Index moved to 104.2, hardly the previous registered record during Donald Trump’s first term in late 2018. When you look under the cover of the production index, that is better.

Manufacturing increased nine tenths of 1 % by driving cars and spare parts that jumped by an incredible 8.5 % for this month. The high technical product has increased by 1.4 % in February, and now more than 26 % increased by an annual rate during the past three months. The business equipment, which is very important, increased by 1.6 % in February and about 24 % annually during the past three months.

The motive behind the giant gain in February may be driven by the expectations of returning to the immediate expenses by 100 %, including the construction of factories-which is an additional collection of wrinkles for the pro-growth Trump program. Foreign investment can also add torque to manufacturing and equipment numbers-in front, April 2 announcement of Trump’s mutual policy.

The defect here is that many local companies may have managed commercial policy by storing foreign imports in January-technically that would reduce GDP. But when you see the production and manufacturing increasing business equipment, this is mainly shown The health supply aspect of the economy. The demand side was also good in February, like The number of basic retail sales jumped 1 % is now 3.8 % annually over the past three months.

In addition, housing increased in February by more than 11 %. The housing has been in a state of decrease in recent years, and the Trump administration has launched a plan to cancel the main restrictions to liberate the land and stop the blue state sites in one way or another from suffocation of any new building. But at least Real estate mortgage rates decreased By half the percentage of approximately from a point to 6.6 % – this can stimulate something from the recovery of housing. Moreover, inflation readings for the month of February came on the boiler side.

Of course, the liberal journalists were paying a quotation “Definitions are a” narration “disaster. We go to a stagnation say. No, wait for a moment, the inflation will go to the sky. Do not hold, it is a tariff that destroys the stock market. In fact, all these unprotected theories are likely to turn into a big mistake. Although the liberals are trying hard to stick to Trump.

Oh, a final idea: Republicans in the House of Representatives and the Senate must move On the tax reduction program. The recession will be drowned once and for all.