PPI, Housing Starts, Building Permits
Core PPI +0.1% vs prior +0.3%, the market roared to the upside on the "tame" inflation data.
Yet Total PPI +0.5% vs prior -1.4%, the largest gain in 17 months. PPI YOY +3.5%, Core PPI YOY +1.7%.
Parabolically rising commodities prices will continue to permeate the supply chain. Core PPI may fall, but Total PPI will rise.
Witness the following: at the finished goods level, energy prices rose 1.8%, including a 9.1% increase in gasoline prices.
Egg prices soared 29% and seafood prices rose 11.5%. YOY Prices received by manufacturers of intermediate goods +7.0%.
The index for materials for durable manufacturing +12.4% SAAR for the 3 months ended March 2006, after +22.0% SAAR in the preceding quarter.
The index for basic industrial materials +16.9% SAAR during the first quarter of 2006, after +9.8% SAAR during the fourth quarter of 2005. Full Release
Housing Starts -7.8% lowest in one year; 1960K vs prior 2126K. Building Permits -5.5%; 2059K vs prior 2179K.
Inside the number: new construction of SFR's fell 12%, led by a 15.5% decrease in the West. Starts YOY are still up +6.9%, this means more inventory to pick from. Full Report
Yet Total PPI +0.5% vs prior -1.4%, the largest gain in 17 months. PPI YOY +3.5%, Core PPI YOY +1.7%.
Parabolically rising commodities prices will continue to permeate the supply chain. Core PPI may fall, but Total PPI will rise.
Witness the following: at the finished goods level, energy prices rose 1.8%, including a 9.1% increase in gasoline prices.
Egg prices soared 29% and seafood prices rose 11.5%. YOY Prices received by manufacturers of intermediate goods +7.0%.
The index for materials for durable manufacturing +12.4% SAAR for the 3 months ended March 2006, after +22.0% SAAR in the preceding quarter.
The index for basic industrial materials +16.9% SAAR during the first quarter of 2006, after +9.8% SAAR during the fourth quarter of 2005. Full Release
Housing Starts -7.8% lowest in one year; 1960K vs prior 2126K. Building Permits -5.5%; 2059K vs prior 2179K.
Inside the number: new construction of SFR's fell 12%, led by a 15.5% decrease in the West. Starts YOY are still up +6.9%, this means more inventory to pick from. Full Report
Comments