Market Observations 04/19/09
Manufacturing production fell another 1.7 percent, marking the fifth sequential decrease totaling 9.6 percent.
March’s drop was more than triple the 0.5 percent decrease in February.
Compared with March 2008, production tumbled 14.9 percent, the worst year-over-year reading of this cycle.
On a year-over-year basis, primary metal production experienced the largest drop (43.2 percent), but the group had some close company, including: motor vehicles (-34.5 percent), wood products (-29.3 percent), and machinery (-22.2 percent).
Compared with March 2008, total sales dropped 9.4 percent, the second-largest year-over-year decrease of this cycle and the worst reading of the year.
Two major measures of inflation contracted in March. Compared with a year earlier, the producer price index fell a whopping 3.6 percent, while the consumer price index slipped 0.4 percent.
Falling prices, over an extended period, are extremely harmful to economic growth.
Housing starts were also disappointing in March at just 510,000 units (annualized rate) after many got excited about February’s unexpected boost to 572,000.
March’s figure is the second-worst reading of this cycle and indicates that the housing market has yet to recover.
From a Naybob of Transport: We actually had a very good March, but as we all know April has been slow...
and what we are seeing now would indicate that Aprils numbers will be even worse than those shown in March regarding the economy.
I still believe the auto industry has already hit bottom and has been at the bottom, but if the economy continues to perform as shown...
this could impact consumer confidence even worse and then of course impact our business.
The Nattering One muses: as stated in February... rosy February numbers were a major headfake.
The next downleg is upon us, take your seats and get ready for the horror show.
March’s drop was more than triple the 0.5 percent decrease in February.
Compared with March 2008, production tumbled 14.9 percent, the worst year-over-year reading of this cycle.
On a year-over-year basis, primary metal production experienced the largest drop (43.2 percent), but the group had some close company, including: motor vehicles (-34.5 percent), wood products (-29.3 percent), and machinery (-22.2 percent).
Compared with March 2008, total sales dropped 9.4 percent, the second-largest year-over-year decrease of this cycle and the worst reading of the year.
Two major measures of inflation contracted in March. Compared with a year earlier, the producer price index fell a whopping 3.6 percent, while the consumer price index slipped 0.4 percent.
Falling prices, over an extended period, are extremely harmful to economic growth.
Housing starts were also disappointing in March at just 510,000 units (annualized rate) after many got excited about February’s unexpected boost to 572,000.
March’s figure is the second-worst reading of this cycle and indicates that the housing market has yet to recover.
From a Naybob of Transport: We actually had a very good March, but as we all know April has been slow...
and what we are seeing now would indicate that Aprils numbers will be even worse than those shown in March regarding the economy.
I still believe the auto industry has already hit bottom and has been at the bottom, but if the economy continues to perform as shown...
this could impact consumer confidence even worse and then of course impact our business.
The Nattering One muses: as stated in February... rosy February numbers were a major headfake.
The next downleg is upon us, take your seats and get ready for the horror show.
Comments