Economic Reports 12/19/06
Summary: Wholesale inflation is raging once again on energy price increases. Housing starts popped up as builders rapidly finish existing inventory. Future activity indicator Building permits fell to a 9 year low.
PPI Nov. +2% vs prior -1.6% Full Report
Inside the number: The largest wholesale inflation jump in 32 years (1974). Core PPI +1.3% vs prior -0.9%, the largest Core rise in 26 years (July 1980).
A sharp increase in energy prices +6.1%, gasoline prices +17.9% and auto prices +2.2% was responsible. Ex auto core PPI +0.2%, YOY PPI +0.9%, core PPI +1.8%. Prices of crude materials +15.7%
Intermediate goods prices, destined for further processing +0.7%, core intermediate goods prices -0.3%. In the past year, core intermediate PPI +5.1%, down from a peak of 8.3% in August.
Housing Starts Nov. +6.7% @ 1.588M vs prior -14% @ 1.488M Full Report
Inside the number: Housing starts rebound as builders try to get WIP - work in process - finished and sold. Starts -25.5% in the past year and -12.5% YTD.
Building Permits Nov. -3% @ 1.506M vs prior 1.553M
Inside the number: the 10th straight decline, at a 9 year low. SFR Permits -3.1% to 1.144M, the lowest since December 1997. Building permits -31.3% in the past year and -14.1% YTD.
PPI Nov. +2% vs prior -1.6% Full Report
Inside the number: The largest wholesale inflation jump in 32 years (1974). Core PPI +1.3% vs prior -0.9%, the largest Core rise in 26 years (July 1980).
A sharp increase in energy prices +6.1%, gasoline prices +17.9% and auto prices +2.2% was responsible. Ex auto core PPI +0.2%, YOY PPI +0.9%, core PPI +1.8%. Prices of crude materials +15.7%
Intermediate goods prices, destined for further processing +0.7%, core intermediate goods prices -0.3%. In the past year, core intermediate PPI +5.1%, down from a peak of 8.3% in August.
Housing Starts Nov. +6.7% @ 1.588M vs prior -14% @ 1.488M Full Report
Inside the number: Housing starts rebound as builders try to get WIP - work in process - finished and sold. Starts -25.5% in the past year and -12.5% YTD.
Building Permits Nov. -3% @ 1.506M vs prior 1.553M
Inside the number: the 10th straight decline, at a 9 year low. SFR Permits -3.1% to 1.144M, the lowest since December 1997. Building permits -31.3% in the past year and -14.1% YTD.
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