Housing Starts/Industrial Production up but Still Weak.

Consumer Price Index  (April 2016)

– CPI overall month/month +0.4%. Previous was +0.1%
– CPI overall year/year  +1.1%. Previous was +0.9%
– CPI core (less food & energy) month/month +0.2%. Previous was +0.1%
– CPI core (less food & energy) year/year  +2.1%. Previous was +2.2%.

These increases were expected.  Inflation should be the most important factor in determining interest rates and, consequently, higher inflation is in the long run the enemy of low rates.

 

 

Housing Starts  (April 2016)

– Starts seasonally adjusted, annualized  1,172,000. Previous was 1,099,000
– Permits seasonally adjusted, annualized 1,116,000.  Previous was 1,077,000

66% of the Starts and 66% of the permits were multi-family.

 

 

Redbook Chain Store Sales (week ended 5/14/2016)

– Store Sales year/year  +0.5%.  Previous was +1.1%

 

 
Industrial Production  (April 2016)

– Production month/month   +0.7%.  Previous was -0.9%
– Manufacturing month/month  +0.3%.  Previous was -0.3%
– Capacity Utilization Rate 75.4%.  Previous was 74.9%.

The moves upward are good on the surface but do not make up for the previous month’s loss.  Industry is still weak.  Factors include trouble with other country’s economies and declines in

auto sales here.