Bernanke, Industrial Production & Capacity Utilization
NY Empire State 20.3 vs prior 20.1, showing manufacturing in the zone is holding steady.
Net Foreign Purchases +56.6B vs prior revised up +91.6B, the decline reflected private investors pulling back on purchases of Treasury bonds and notes.
Investors bought $12.7 billion of Treasurys to close out 2005, down from $50.8 billion in November.
Official institutions bought $5.6 billion of Treasury bonds and notes in December, up from $3.7 billion in November.
Net foreign purchases of long-term domestic securities were $74.2 billion. Private investors bought $63.8 billion in securities, while foreign official institutions accounted for $10.4 billion. Full report
Capacity Utilization 80.9% vs revised up prior 81.2%, Industrial Production -0.2% vs revised up prior +0.9%, +3.1% YOY. Without the record drop in Utilities output, utilization is still well over 81% and economic slack is tightening.
Inside the number: Consumer durables -0.4%, reflecting a 7% drop in the production of nondurable consumer energy goods. A record 10.1% drop in utilities output -4.7% YOY, mining +1.7%, -1.8% YOY.
Manufacturing output +0.7% +4.5% YOY, autos and parts +2.3%, business equipment +0.9% +10.7% YOY. Full report
Bernanke's Testimonial before Congress; Further firming necessary, economic expansion remains on track and the momentum may lead to overheating, risk of higher energy price pass through than previously thought, cost pressures increasing, resource utilization rising.
Inflation pressures increased but appear "contained" as core inflation seems "benign", federal deficit to widen, global savings glut keeping long term rates low, housing market cooling, further deceleration is possible resulting in reduction of consumer spending, US savings rate likely to rise.
Net Foreign Purchases +56.6B vs prior revised up +91.6B, the decline reflected private investors pulling back on purchases of Treasury bonds and notes.
Investors bought $12.7 billion of Treasurys to close out 2005, down from $50.8 billion in November.
Official institutions bought $5.6 billion of Treasury bonds and notes in December, up from $3.7 billion in November.
Net foreign purchases of long-term domestic securities were $74.2 billion. Private investors bought $63.8 billion in securities, while foreign official institutions accounted for $10.4 billion. Full report
Capacity Utilization 80.9% vs revised up prior 81.2%, Industrial Production -0.2% vs revised up prior +0.9%, +3.1% YOY. Without the record drop in Utilities output, utilization is still well over 81% and economic slack is tightening.
Inside the number: Consumer durables -0.4%, reflecting a 7% drop in the production of nondurable consumer energy goods. A record 10.1% drop in utilities output -4.7% YOY, mining +1.7%, -1.8% YOY.
Manufacturing output +0.7% +4.5% YOY, autos and parts +2.3%, business equipment +0.9% +10.7% YOY. Full report
Bernanke's Testimonial before Congress; Further firming necessary, economic expansion remains on track and the momentum may lead to overheating, risk of higher energy price pass through than previously thought, cost pressures increasing, resource utilization rising.
Inflation pressures increased but appear "contained" as core inflation seems "benign", federal deficit to widen, global savings glut keeping long term rates low, housing market cooling, further deceleration is possible resulting in reduction of consumer spending, US savings rate likely to rise.
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