Under the radar: Some trends are obvious enough and visible to all investors. Others are more-subtle, but are just as potent, and these often slip 'under the radar.'

Case in point: At a small factory in Wisconsin, something positive happened, something few investors are aware of -- but it's a data point that savvy investors should take note of.

Managers at Rockwell Automation (NYSE: ROK) plant reinstated a second shift, hiring 12 workers, The New York Times reported Saturday.

U.S. industrial production fell 0.2% in May, the U.S. Federal Reserve announced Tuesday, its third drop in the past four months.

Economists surveyed by Bloomberg News had expected industrial production to rise 0.1% in May. Industrial production fell 0.7% in April.

Further, manufacturing output was unchanged in May, the Fed said, while utilities output declined 1.8%, and mine output increased 0.1%. The Fed added that factory output was boosted by a small pickup in the index for motor vehicles and parts; the end in late May of a strike at a parts producer had little effect on vehicle output for the month.

Also, capacity utilization declined to 79.4% in May from 79.6% in 79.7 in April. Economists surveyed by Bloomberg News had expected capacity utilization to total 79.7 in May. The May utilization rate is 1.6 percentage points below its average for 1972-2007 and is at its lowest level since November 2004. Capacity utilization totaled 80.3% in March and 80.9% one year ago, in May 2007.

U.S. economy operating well below capacity

Economist David H. Wang said U.S. industrial production continues to operate well below capacity. "We are continuing to see a downward path of industrial production and this is not a good sign. Industrial production has declined for about one year, and this will weigh on commercial activity. It's also a major job loss area," Wang said. "The U.S. economy is complex and multi-faceted but it's hard for GDP to grow without industrial production increasing."

U.S. industrial production plunged 0.7% in April 2008, the U.S. Federal Reserve announced Thursday, as a spectrum-wide contraction took place in the nation's factories.

Economists surveyed by Bloomberg News had expected industrial production to decline 0.3% in April 2008.

Further, factory output plummeted 0.8% - - the largest drop in factory output since September 2005, a month that reflected the abnormal, irregular factory output reduction caused by Hurricane Katrina in the late summer of 2005. Excluding autos and auto parts, factory output declined 0.4%.

Also, capacity utilization increase declined to 79.7% in April 2008 from 80.4% in March 2008. Economists surveyed by Bloomberg News had expected capacity utilization to total 80.1% in April 2008. Capacity utilization totaled 80.3% in February 2008.

Industrial output evaluation

Economist David H. Wang said the April 2008 industrial production statistic reflects a familiar theme in the current U.S. economic slowdown: a contracting factory sector.

Industrial Production fell 0.5% in October, considerably worse than the consensus estimate of a 0.1% production gain, the U.S. Federal Reserve announced Friday. It was the largest decline in IP since January 2007. Industrial Production rose 0.2% in September.

Meanwhile, capacity utilization --- which measures the percent of plants in use --- fell to 81.7% in October from 82.2% in September. Analysts had expected a 0.1%-0.3% rise in the utilization rate.

Production at factories declined 0.4%, utility production declined 1.6%, and mining output fell 0.6%. Also telling: production of consumer durable goods dropped 0.8%.

Analysts said the October industrial production decline adds to the argument that the U.S. housing sector's woes - - the most serious housing slump in more than a decade - - are beginning to spill over into the broader economy:

"The October industrial production statistic certainly is a disappointment. Combined with lower capacity utilization, it suggests the economy is slowing, and it's something that has to concern the Fed," economist M. David Chandler told Bloggingstocks. "This puts added focus on the November and December stats. If we see industrial production slowing in those two months, Q4 will come in very, very weak, and the U.S. economy will be growing at near-stall levels."

Wal-Mart (NYSE: WMT) is reporting that is finding fewer instances of serious labor violations during inspections of more than 8,900 factories that supply the retailer with the inexpensive imported goods that American consumers crave. The socially responsible/religious investors who have lobbied the company to improve its labor practices are pleased.

"We believe there is lots more to be done," Rajan Kamalanathan, vice president of ethical standards, told The Associated Press in an interview.

"We also recognize that we alone just can't solve these complex issues we face out there and look forward to working with other brands and retailers to improve conditions in the factories that we all source from."

It's encouraging to see Wal-Mart taking corporate ethic seriously and the decrease in labor violations is likely a direct result of the company's increased vigilance.

Continuing changes at Wal-Mart will likely come as a result of increased activism on the part of socially responsible shareholders. The company's size gives it the power to change the working conditions in third world countries in a huge way, and it looks like the company is finally doing that.

I was happy to see that today's Wall Street Journal was taking a closer look at what I considered the most interesting part of the pet food recall: 101 Brand Names, 1 Manufacturer. It turns out that Menu Foods was the manufacturer for everything from discount private label brands to some of the most expensive premium brands: Everything from Wal-Mart's Ol' Roy to the Science Diet stuff that I buy at the vet for my elderly lab with digestive problems.

And apparently it's the same in lots of other industries: Kellwoods sews clothes for Calvin Klein and Sag Harbor, a much cheaper label. Of course, the industry spokespeople say that they are all made from different recipes and whatnot and that the products vary in quality. But what else are they going to say?

I'm still suspicious about this: I always buy store brands if they're cheaper and I don't notice the difference. But hey, maybe I'm just not sophisticated.