EIA; Industrial Production; Capacity Utilisation; CPI
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.
Summary: The effects of the last emasculation of US automotive manufacturing are starting to be felt. The housing sector is starting to leave serious skidmarks as it slides toward a major precipice. The CPI shows rampant stagflation and the effects of energy pass through inflation.
EIA Inventory: Crude -1.6MB; Gasoline -2.3MB; Distillates +800KB. The price of crude dropped below $73 per barrel on the news.
July Industrial Production +0.4% vs prior +0.8% Full Report
Inside the number: July Capacity Utilisation 82.4% vs prior 82.3% a small increase. Production fell and utilisation was flat, mostly due to a decrease in auto production -5.4% vs prior +3% and auto parts -6.2% vs prior +4.2%.
This demonstrates the effect that GM & Ford closures will have on our economy.
July Housing Starts -2.5% @ 1.8M Full Report
Inside the number: The 5th decline in the last 6 months at the lowest level in 2 years. New permits -6.75% @ 1.75M, the 6th straight decline, the largest since Sept 99 and at their lowest level since Aug 02. YOY Housing starts -13.3%.
July CPI +0.4% vs prior +0.2% Full Report
Inside the number: CORE CPI +0.2% vs prior +0.3% a slight easing in the core, but the overall CPI is still rising. The media and market ignored this fact.
Worse yet, owners equivalent rent spiked +0.4% (this is 33% of the CPI). In the last year; energy prices +20.5%; CPI +4.1%; Core CPI +3.1% and inflation adjusted wages (real earnings) are DOWN -0.1%.
Furthermore the Median CPI which includes food & energy +0.4%; in the last year +3.3%. The cost of living and energy pass through stagflation are eating people alive.
Summary: The effects of the last emasculation of US automotive manufacturing are starting to be felt. The housing sector is starting to leave serious skidmarks as it slides toward a major precipice. The CPI shows rampant stagflation and the effects of energy pass through inflation.
EIA Inventory: Crude -1.6MB; Gasoline -2.3MB; Distillates +800KB. The price of crude dropped below $73 per barrel on the news.
July Industrial Production +0.4% vs prior +0.8% Full Report
Inside the number: July Capacity Utilisation 82.4% vs prior 82.3% a small increase. Production fell and utilisation was flat, mostly due to a decrease in auto production -5.4% vs prior +3% and auto parts -6.2% vs prior +4.2%.
This demonstrates the effect that GM & Ford closures will have on our economy.
July Housing Starts -2.5% @ 1.8M Full Report
Inside the number: The 5th decline in the last 6 months at the lowest level in 2 years. New permits -6.75% @ 1.75M, the 6th straight decline, the largest since Sept 99 and at their lowest level since Aug 02. YOY Housing starts -13.3%.
July CPI +0.4% vs prior +0.2% Full Report
Inside the number: CORE CPI +0.2% vs prior +0.3% a slight easing in the core, but the overall CPI is still rising. The media and market ignored this fact.
Worse yet, owners equivalent rent spiked +0.4% (this is 33% of the CPI). In the last year; energy prices +20.5%; CPI +4.1%; Core CPI +3.1% and inflation adjusted wages (real earnings) are DOWN -0.1%.
Furthermore the Median CPI which includes food & energy +0.4%; in the last year +3.3%. The cost of living and energy pass through stagflation are eating people alive.
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