Initial Claims, GM Rebound, Leading Indicators & Philly Fed
Initial Claims -10K, 303K vs prior 313K. Neither here nor there.
GM posted its sixth straight quarterly loss, but revenues grew 14% and losses narrowed. GM's loss shrank to $323 million, or 57 cents a share, from $1.3 billion or $2.22 a share in the last quarter. GM stock up 9% on the news.
Leading indicators -0.1% vs prior -0.5%. 2nd straight drop, media spin indicated a potential slowdown.
Inside the number: Despite the weakness in the leading index in February and March, its six month growth rate picked up to an average of 3.2 % annual rate in Q106.
This is UP from an average growth rate of 2.7% in Q405, which was higher than its average growth of 1.8% in all of 2005. Full Report
Philadelphia Fed 13.2 vs prior 12.3. Media spin indicated no inflationary danger.
Inside the number: Prices paid component, i.e. the cost of materials needed 29% vs prior 17.2%. Can you say inflation? I can and heres more...
Media focused on: New orders -9 points; Shipments -5 points. However, both indexes remain positive and are only slightly below their average levels of the past three months.
In April, for the first time in six months, more firms reported declines in inventories than increases. Firms, on balance reported more unfilled orders as well. Both pointing to potential inflation from limited economic slack.
Continued expansion in manufacturing is evident. Current employment +16 points, and the percentage of firms reporting increased employment rose from 17% in March to 28% this month.
Respondents reported higher production costs again this month. 35% reported higher input prices, up from 23% in March. The prices paid index climbed 12 points, the first increase in six months.
Higher prices for final manufactured goods were reported by 24% of the firms, up from 19% last month. Full Report
GM posted its sixth straight quarterly loss, but revenues grew 14% and losses narrowed. GM's loss shrank to $323 million, or 57 cents a share, from $1.3 billion or $2.22 a share in the last quarter. GM stock up 9% on the news.
Leading indicators -0.1% vs prior -0.5%. 2nd straight drop, media spin indicated a potential slowdown.
Inside the number: Despite the weakness in the leading index in February and March, its six month growth rate picked up to an average of 3.2 % annual rate in Q106.
This is UP from an average growth rate of 2.7% in Q405, which was higher than its average growth of 1.8% in all of 2005. Full Report
Philadelphia Fed 13.2 vs prior 12.3. Media spin indicated no inflationary danger.
Inside the number: Prices paid component, i.e. the cost of materials needed 29% vs prior 17.2%. Can you say inflation? I can and heres more...
Media focused on: New orders -9 points; Shipments -5 points. However, both indexes remain positive and are only slightly below their average levels of the past three months.
In April, for the first time in six months, more firms reported declines in inventories than increases. Firms, on balance reported more unfilled orders as well. Both pointing to potential inflation from limited economic slack.
Continued expansion in manufacturing is evident. Current employment +16 points, and the percentage of firms reporting increased employment rose from 17% in March to 28% this month.
Respondents reported higher production costs again this month. 35% reported higher input prices, up from 23% in March. The prices paid index climbed 12 points, the first increase in six months.
Higher prices for final manufactured goods were reported by 24% of the firms, up from 19% last month. Full Report
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