Economic Reports 12/13/06
Business Inventories Oct. +0.4% vs prior +0.3%
Inside the number: Falling sales and rising inventories. Sales -0.2% vs prior -2.3%. Inventories at a 2.5 year high, in the last year sales +3.6% and inventories +7.3%.
Inventories will continue to rise as China to keep the masses satitated, will keep producing goods even as margins turn negative, this will keep prices down.
Retail Sales Nov. +1% vs prior -0.1%
Inside the number: Tis the season, rising for the 1st time in four months. Ex auto & gasoline +0.9% the largest gain since January. Consumption accounts for 70% of GDP, dwarfing housing & manufacturing.
With the deflationary retail goods price spiral made possible by outsourcing to labor at the margin, consumption should stay the same during this downturn.
Inside the number: Falling sales and rising inventories. Sales -0.2% vs prior -2.3%. Inventories at a 2.5 year high, in the last year sales +3.6% and inventories +7.3%.
Inventories will continue to rise as China to keep the masses satitated, will keep producing goods even as margins turn negative, this will keep prices down.
Retail Sales Nov. +1% vs prior -0.1%
Inside the number: Tis the season, rising for the 1st time in four months. Ex auto & gasoline +0.9% the largest gain since January. Consumption accounts for 70% of GDP, dwarfing housing & manufacturing.
With the deflationary retail goods price spiral made possible by outsourcing to labor at the margin, consumption should stay the same during this downturn.
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