Relationship Between Manufacturing Production and Goods Output

According to the author, the sharp divergence in the 2001 recession between two key economic indicators--manufacturing production and goods output--could suggest that one indicator is flawed, casting doubt on the reliability of its overall series. The analysis finds no evidence of error. Rather, the strength of spending on consumer--relative to capital--goods and the growth of merchandising services in the sale of consumer goods more likely explain the recent deviation.