Industrial+production+rises+by+most+in+5+months+-+Sean


 * Title of Article:** Industrial production rises by most in 5 months
 * Source:** []
 * Date of Article:** Jan 14th, 2011

providing the economy with solid momentum heading into the new year." Also, industrial production was up in every month but one(October) in 2010. The article then goes on to elaborate on the rising US economy by stating that it has "risen 11 percent since hitting its recession low in June 2009." This statement is supported by evidence given throughout the rest of the extract. An increase of 0.4 percent in factory production which includes makers of computers and electronic products, clothing and leather, chemicals and other products are "the biggest slice of industrial output", which means that this industry is one of the biggest determining factor of the US economy. A stronger US economy leads to a stronger US factory production which leads to more hiring and job opportunities in the US. "Employment in manufacturing grew by 10,000 in December, the first increase since July." Also, the Feds expect that inflation won't be a problem this year, seeing that only gas prices have experienced a major inflation in 2010. But outside of energy costs, there was little sign of widespread inflation. Core inflation, which strips out volatile energy and food, was up just 0.1 percent in December.
 * Summary:** This article is mainly talking about the booming industrial production in the US, "rising in December by the largest amount in five months,

__Supply__: Quantities of goods and services that sellers are willing to offer at various prices at a given time and place. __Demand__: The desire of purchasers, consumers, clients, or employers, etc., for a particular commodity, service, or other item. __Inflation__: Demand for goods is rising faster than companies can produce. __Consumer__: A person or organization that uses a commodity or service. __Market__: A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures where by persons trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange things. __Commodity__: A commodity is some good for which there is demand, but which is supplied without qualitative differentiation across a market. __Economy__: The study of how to allocate limited resources amongst unlimited wants. __Positive statement__: A statement that can be proven by statistics or some sort of data/evidence. __Normative statement__: A statement that is based on opinion or value judgement because it cannot be proven by statistics. __Macroeconomics__: The study of economics of a nation as a whole.
 * Vocabulary:**


 * Graph:**

Because the US economy is slowly getting better, with employment rates rising etc., the demand for commodity goods in the United States is increasing and slowly moving back to its equilibrium point.

As mentioned in the article, "the percentage of factory space used for production and other industrial capacity in use last month rose to 76 percent." Ideally, industrial companies will use about 80 percent of their capacity in the best-case scenario. At the current level of 76 percent, I agree that there is still room for improvement for the US economy. However, you dont want to exceed that number by too much as that will be considered as inflation, where the demand for goods are rising faster than companies can supply.
 * Conclusion and Evaluation:**