Perspective on the manufacturing recovery

Industrial production is at levels first achieved more than ten years ago, and capacity utilization is close to record postwar lows. 

The EU and US are debt-strapped; only the solvent developing world has the purchasing power to increase manufacturing demand significantly, but they have been dependent on the EU and US as final markets.

A second round of deflationary contraction in the US and EU will probably result in the formation of a head-and-shoulders pattern in Industrial Production in the US, and probably globally.