The US Industrial economy backtracked a little bit more last week (if pipeline scheduling is correct), while consumer spending turned modestly higher.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) eased for the third straight week, settling at 114.1 (from the prior weeks 114.5). In its dailies the week started soft, firmed midweek, and ended the week strong.
The paperboard-based Consumption Index reversed itself again (it has been waffling back-and-forth lately), gaining to 125.6 (from the previous weeks 125.0), In its dailies the week was soft early, firmed briefly mid-to-late-week, then softened again late into the weekend.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index) continued its continual descent.
In spite of the softness of the past three weeks, the economy (at least for now) appears firmly underpinned by consumer spending, with the deficit of the Production Index to the Consumption Index, and the deep and continuing decline of the Inventories Measure continuing to lend credence to the economic recovery.
Remaining a concern is the continuing lag in the Production vs Consumption Index, which continues to imply a shallowness in the productive end of the US economy... which is a continuing drag on employment and job-creation.
-Robry825
