May PPI; Housing Starts; Industrial Production

Summary: Headline reads: Core PPI meets expectations, total PPI higher than expected.

Under the sheets, double digit energy stagflation raging throughout the supply chain.

Headline reads: Housing starts and building permits data mostly in-line with estimates.

Under the sheets, SFR starts hit a 17 year low as permits have fallen 42% Yoy.

Headline reads: Industrial Production in line with estimates. Under the sheets, consumer goods 4th straight decline.

PPI May +1.4% vs +0.2% Full Report

Inside the number: Core PPI +0.2% vs +0.4%. Monthly: Gasoline +9.3%; Energy +13.1% Intermediate goods +2.9%; Crude goods +6.7%.

Yoy: Finished consumer goods +8.8%; intermediate goods +12.6%; crude goods +41.5%; non durables less food +12.6%.

Yoy: food +16.6%; non food materials ex fuel +66%; intermediate foods +21.9%;

We gently repeat one of our mantras: ANYONE claiming stagflation is under double digits is a paid liar, a fool or both.

Housing Starts May -3.3% 975K vs 1008K Full Report

Inside the number: Yoy -32%; YTD -30.6%. SFR -1% at 681K; Yoy -41.2%; YTD -40.1%

Building Permits May -1.3% 969K vs 982K; Yoy -36.3%; YTD -35.7%. SFR -4% at 623K; Yoy -41.4%; YTD -41.6%

Industrial Production May -0.2% vs -0.7% Full Report

Inside the number: Capacity Utilization May 79.4% vs 79.7%. Yoy Motor Vehicle -14.7%; Wood products -13%;

Home Electronics -12.1%; Appliances -11.7%; Textile -13.2%; Durable consumer parts -10.5%; Machinery -5.1%