Post Missed the Seasonal Factor in Industrial Output

August 18, 2010

The Federal Reserve Board reported a big uptick in industrial production in July. A large part of the increase was attributable to the fact that the Detroit auto manufacturers did not shut down in July for model changes as they ordinarily do. This led to a reported 8.8 percent rise in auto output for the month since the seasonal adjustments assume that this shutdown takes place. This virtually guarantees a large decline in output for August and is not by itself an indication of improvement in the auto industry.

The Post missed this fact and touted the upturn in auto production.

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