US manufacturing and production have not yet exhibited the declines one might expect from the gloom and doom reported in the mainstream news. Industrial Production overall was up 0.2% in August vs. July.

If “consumers are scared to spend,” producers of durable goods such as appliances and furniture haven’t yet received that news. That segment was up 1.3%.

The manufacturing sector we have been watching most closely, Motor Vehicles and Parts, edged up 1.7% to build on July’s revised 4.5% gain. Japanese manufacturers had still not returned to 100% production levels in August, so we can expect that segment to point upwards in the next few months, especially since Toyota just this week announced that they have returned to 100%.

The only real laggard this month was Utility output, declining 3.0% due primarily to August’s milder temperatures.

The global financial system is indeed in disarray, but this month’s IP data suggests the US manufacturing economy is shrugging off any impact fairly well.