We just got a trifecta of economic reports and they all suggest the economy is recovering (and that the inflation picture is somewhat less benign). To wit:
* Retail sales surged 2.7% in August. That was much stronger than the 1.9% gain that was expected and the biggest rise in three years. But even if you exclude autos (where sales were boosted by the “Cash for Clunkers” program), you still get an increase of 1.1%, much hotter than the 0.4% rise that economists were looking for. That was the biggest rise in six months.
* The Empire Manufacturing index of New York-area activity rose to 18.9 in September from 12.1 in August. That was hotter than the 15 reading people were looking for and the highest reading in almost two years. The “prices paid” subindex jumped to 20.2 from 13.8, while the new orders subindex climbed to 19.8 from 13.4.
* The Producer Price Index surged 1.7% in August. That was more than double the 0.8% gain that was expected and a big swing from the -0.9% reading in July. The “core” PPI, which excludes food and energy, rose 0.2% against a forecast for 0.1%.
The aftermath? Stock futures are popping, while bond futures are down two-thirds of a point. The dollar is picking up a bit.
Related posts:
- PPI deflation worst since 1950; Retail sales tank If you’re looking for a “reflation” courtesy of the Federal Reserve’s massive money-pumping efforts, you’re going to be hardpressed to...
- Construction spending weak, ISM strong There’s more economic data than you can shake a stick at today. So forgive me for being a bit behind...
- Retail sales okay, import prices weak We’re getting some more U.S. economic data and the tone overall is okay. Retail sales dropped 1.5% in September as...
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Hey everybody, Don’t believe everything you read . It is a facade. We all want to believe that all is getting better, but is it really true? Most people don’t want the truth. They can’t handle it. They prefer the fairy tales the mass media puts out. The American dream is turning into a nightmare. The beauty about the dream getting ugly is that it forces people to `WAKE UP`. The alarm clock is going to get very loud and annoying. The Great American Empire is collapsing. We must realize that is must crumble and from the ashes of the old, the new foundations will be built. The pain and suffering is trying to make the old, corrupt system succeed when all signs are saying it`s foundations are faulty.
Mike I enjoy reading your views. It is important that you keep telling people the message. Don`t wait for someone to come save you or bail you out. Find the leader that resides within.
Interesting numbers. Yet I see no one in the stores, and I live in a wealthier area in the Phoenix Metro area. I wonder what parts of the country are so hot they are creating these wonderful numbers. No one I know has discretionary income. Suspicious. The Ministry of Truth must be working OT. Anything to create another bubble in the stock market, only to crash yet again. Question is when.