Today was industrial production day. As usual, the weak performance is attributed to some price change. From the WSJ:
U.S. factories scaled back production further in September as the strong dollar and weak overseas economies continue to suppress demand for American-made goods.
Industrial production—a broad measure of output by factories, mines and utilities—slipped 0.2% in September after falling 0.1% in August, the Federal Reserve said Friday.
Today I also had access to Macroeconomic Advisers monthly estimate of GDP for August (both nominal & real).
Once again, you can put the blame for the weakening economic performance on monetary tightening (falling NGDP growth). And note how the fall in growth has intensified more recently, together with louder TT!
What the Fed does not understand is that by talking of “tightening” (TT) it is in fact tightening!