The US Industrial economy gave back a little more ground last week (if pipeline scheduling is correct), while consumer spending held its ground.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) worked lower for the fourth straight week, settling at 113.8 (from the prior weeks 114.1). In its dailies the week started strong early then moderated back to the trend of the last few weeks.
The paperboard-based Consumption Index gained for its second week in a row, rising to 127.9 (from the previous weeks 125.6), In its dailies the week was choppy to soft.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index) continued its seemingly never-ending descent.
In spite of the softness of the past four weeks, the economy (at least for now) appears to remain supported by consumer spending (consumer spending is the leash that leads the dog of the economy), with the deficit of the Production Index to the Consumption Index, and the deep and continuing decline of the Inventories Measure continuing to affirm the economic recovery.
A lingering 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
