ISM, Income & Spending, PCE Deflator
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
June Personal Income +0.6%; Spending + 0.4% Full Report
Inside the number: core PCE deflator >= +0.2% for a 4th straight month (March +0.3%); YOY +2.4% the largest increase in 11 years, stoking inflation fears.
Overall PCE +0.2% vs prior +0.4%, Services PCE +0.1% vs prior +0.4%. Consumer spending adjusted for inflation, +0.2%, the 4th tepid month.
Translation: Consumer spending is strained due to higher debt service and elevated prices at the pump, providers of goods and services will suffer.
July ISM UP @ 54.7 vs prior 53.8 Full Report
Inside the number: New orders DOWN 56.1 vs prior 57.9; Inventories UP 50.5 vs prior 46.9; Production UP 57.6 vs prior 55.1; Employment UP 50.7 vs prior 48.7; Backlog DOWN 50.5 vs prior 54.
Prices UP 78.5 vs prior 76.5, at the highest level this year due to energy pass through increased input costs; signaling further inflation.
Production and employment up to get the June orders out the door, reducing the backlogs. New orders are down while inventories are up, indicating a potential slowing.
July Farm Prices Full Report
The index of priced received by US farmers was unchanged. YOY +0.9%; since 1990-92 index of prices paid +148%; index of prices received +117%. The difference between the two indices has been the death of the small American farmer.
NAR June Pending Home Sales +0.4% Full Report
Inside the number: 2nd straight increase, YOY -9.6%; YOY South -4.8%; Northeast -11.6%; Midwest -11.9%; West -14.2%. The market is cooling and this summer is the last hurrah.
June Construction Spending +0.3% @ $1.127B Full Report
Inside the number: Overall YOY +6.8%; YTD +8.5%. Residential construction -1% @ $641B; since March 06 -3.4%. More sticks, more inventory, bad news for sellers and speculators.
Worse yet, spending is starting to pull back which will effect 40 - 60% of the new jobs since 2001. This will severely impact the economy, witness the above noted pullback in services spending.
June Personal Income +0.6%; Spending + 0.4% Full Report
Inside the number: core PCE deflator >= +0.2% for a 4th straight month (March +0.3%); YOY +2.4% the largest increase in 11 years, stoking inflation fears.
Overall PCE +0.2% vs prior +0.4%, Services PCE +0.1% vs prior +0.4%. Consumer spending adjusted for inflation, +0.2%, the 4th tepid month.
Translation: Consumer spending is strained due to higher debt service and elevated prices at the pump, providers of goods and services will suffer.
July ISM UP @ 54.7 vs prior 53.8 Full Report
Inside the number: New orders DOWN 56.1 vs prior 57.9; Inventories UP 50.5 vs prior 46.9; Production UP 57.6 vs prior 55.1; Employment UP 50.7 vs prior 48.7; Backlog DOWN 50.5 vs prior 54.
Prices UP 78.5 vs prior 76.5, at the highest level this year due to energy pass through increased input costs; signaling further inflation.
Production and employment up to get the June orders out the door, reducing the backlogs. New orders are down while inventories are up, indicating a potential slowing.
July Farm Prices Full Report
The index of priced received by US farmers was unchanged. YOY +0.9%; since 1990-92 index of prices paid +148%; index of prices received +117%. The difference between the two indices has been the death of the small American farmer.
NAR June Pending Home Sales +0.4% Full Report
Inside the number: 2nd straight increase, YOY -9.6%; YOY South -4.8%; Northeast -11.6%; Midwest -11.9%; West -14.2%. The market is cooling and this summer is the last hurrah.
June Construction Spending +0.3% @ $1.127B Full Report
Inside the number: Overall YOY +6.8%; YTD +8.5%. Residential construction -1% @ $641B; since March 06 -3.4%. More sticks, more inventory, bad news for sellers and speculators.
Worse yet, spending is starting to pull back which will effect 40 - 60% of the new jobs since 2001. This will severely impact the economy, witness the above noted pullback in services spending.
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