Economic Reports 03/16/07

Summary: For those who can handle the truth... by ferreting out the ugly details... the Nattering One peels the lipstick off and exposes the pig in a poke...

Along with housing, economy and stock market... consumer sentiment down. CPI showing raging stagflation...

Industrial Production rebounding and Capacity Utilization rising... the rise on a cold weather utility spike...

the numbers show that manufacturing is at a standstill while construction activity continues to shrink and the last vestiges of automotive get emasculated...

Mich Sentiment-Prel. Mar 88.8 vs prior 91.3 ho hum...

CPI Feb +0.4 vs prior +0.2%
Full Report

Inside the number: Core CPI Feb +0.2% vs prior +0.3%. Food prices up for the 2nd straight month, +0.8%, the largest gain in 2 years.

Annualized over the last 3 months: Food +6.1%, Services 6.8%, Medical care +6%, Energy +14.9%

Fresh fruit +5.7%, the most in 19 years, fresh vegetables +5.7%. Medical care +0.5%, Physician services and hospital services +0.6%. Airfares +0.9%, Tobacco +1%.

Apparel prices +0.5% and 2.1% in the last year, highest increase in 14 years.

Industrial Production Feb +1.0% vs prior -0.3%
Full Report

Inside the number: Capacity Utilization Feb 82% vs prior 81.4%.

Utility output +6.7% the biggest jump since 1989 as cold weather saw an 11% spike in natural gas output and 5.9% jump in electric output.

Construction -0.6% and Yoy -2.5%. Home appliances, furniture, carpeting and miscellaneous goods all declined. Crude stage capacity utilization slipped 0.2%.

Manufacturing output +0.4%, on a rebound of +3.2% in the output of automotive products which was led by an increase in the production of light trucks.

However, there was a decline in the production of transit equipment -0.2% and the output of nondurable manufacturing slipped -0.2%.

How much damage will the final emasculation of automotive manufacturing cause? This month, excluding motor vehicle output we are at a standstill, from Table 2:

Total industry +0.1%, Consumer goods +0.0%, Business Equipment +0.0% , Construction supplies -0.6%, Business Supplies -0.1%, Materials +0.3%.

Automotive, manufacturing in general and construction are all sliding... YoY: Motor vehicle output -6.1%, vehicles & parts -3.3%, construction supplies -2.7%

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