Economic Reports 11/14/07

Summary: Last month, I decided to help the producer price index by:

lowering my consumption spending; and fighting the evil doer's by combating energy based stagflation.

Via the internet, I loaded up on 10 computers, a gross of sheetrock, building paper & board (to build a habitat for the PC's and myself).

I didn't drive anywhere and sat at home, monitoring the PC activity. To save on utilities, no heater, washing machines, dryers, kitchen or bathroom use.

Instead, I opted to turn green, by wrapping myself in the left over building paper for warmth, bodily waste absorption and odor control.

Food? To lower my cholesterol and lose weight, I gorged on sugar coated fruit and melons.

Of course my actions did not help business inventories or retail sales. It's just getting better all the time...

Headline PPI up ONLY 0.1% and a flat core. Smell something turning green? other than moi?

A peak under the sheets reveals a steamin pile... YOY crude non food materials for further processing, ex fuel +30%.

Business inventories reveals a slowing economy through a build in retail and manufacturing inventory...

on lower unit sales, with wholesalers liquidating their excess inventory (thats how I got the PC's & building materials.)

Retail sales confirms the slowing economy in demostrating John Q spending less the last 90 days vs prior 90 days.

PPI Oct +0.1% vs prior +1.1% Full Report

Inside the number: Mythical Core PPI Oct FLAT vs prior +0.1%; Foods +1% vs prior +1.5%. YOY Finished Goods +6.1%; Intermediate Goods +5.6%; Crude goods +25.7%.

LESS FOOD: Finished consumer goods +7.5%; Non durable goods +9.9%. Natural gas +22%; Utilities +10%

Feeds +31%; wheat +79%; milk +57%; corn +15%; veggies +27%; eggs +62%; chicken +14%; dairy +26%; gasoline +32%; heating oil +16%; flatware +21%; fertilizer +17%; iron +29%; wastepaper +65%.

Going down? What we no longer build: computers -22%; gypsum (sheetrock for housing) -25%; building paper & board -7%.

Nor grow: fresh fruits & melons -17%; sugar -15% (used for ethanol, rather than corn, by intelligent governments i.e. Brazil, and the price is down!!!).

Business Inventories Sep +0.4% vs prior +0.3% Full Report

Inside the number: All numbers excluding price increases.

Adjusted, sequentially: Less orders and backed up inventory in manufacturing, and an inventory clearance at wholesale and retail levels.

Sales +0.6; Manufacturing FLAT; Retail +0.7%; Wholesale +1.3%
Inventories +0.4%; Manufacturing +0.6%; Retail +0.1%; Wholesale +0.8%

Unadjusted sequentially: Manufacturing slowing, less sales & orders for inputs. Backup of inventory on plunging sales at retail and wholesale levels.

Sales -6.1%; Manufacturing -2.8%; Retail -9.1%; Wholesale -6.9%
Inventories +1.2%; Manufacturing -0.2%; Retail +2.5%; Wholesale +1.4%

Unadjusted YOY: Lagging sales and inventory build at manufacturing & retail levels, wholesalers liquidating excess inventory.

Sales +3.4%; Manufacturing +1.5%; Retail +2.6%; Wholesale +6.5%
Inventories +3.2%; Manufacturing +2.3%; Retail +2.9; Wholesale +4.8%

Retail Sales Oct +0.2% vs prior +0.7% Full Report

Inside the number: Retail Sales ex-auto Oct +0.2% vs prior +0.3%. Furniture -0.9%; Sporting goods -0.4%.

Dept Stores -0.5%; Non store retailers -1%; General Mechandise stores -0.1%; Misc stores -0.6%

YOY Dept Stores -2%; Gasoline stations +16%. Yes, John Q is pulling back over the last 3 months vs the prior 3 months:

Retail & Food Services Sales ex auto: -0.1%; building supplies -1.7%; furniture -1.4%; gasoline -2%; sporting goods -0.9%; dept stores -0.9%; non store retailers -0.4%

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