October 22, 2021

The data show that Industrial production continues its return to long-term trends, despite a slowdown in September total industrial production rose 4.3 percent at an annual rate for the third quarter. Capacity Utilization for the industrial sector is 4.4 percentage points below its long-run average. Once the supply chain constraints ease, the economy should expand without any inflationary pressure. Our forecast estimates Industrial Production reaching its long-run average by mid-2022.

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