Archived IMT (2008.10.16)

The dollar holds firm despite the 41-point plunge in the October Philadelphia Fed survey to an 18-year low of -37.5, and the worst reading in industrial production in 34 years, which confirm the evident slump in US manufacturing. Stocks are driven back down by the data realities as US industrial production fell 2.8% in September, which was the third consecutive monthly drop, accompanied by sizable declines in capacity utilization and output across the board. The benign inflation report showing no change in September reflected plummeting energy prices and slowing demand, thus, raising the risk of deflation being the greater danger for the US economy.