The US Industrial economy appears to have taken a vacation (along with Robry) over the past two weeks (if pipeline scheduling is correct), as industrial production eased slightly while consumer spending hang supportively above.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) broke its prior string of four record highs in a row, dipping to 118.8 (from last weeks 119.7 and the prior weeks 120.2). In its dailies it had its third of three consecutive soft week in a row.
The paperboard-based Consumption Index meandered to 127.5 (from last weeks 127.0 and the prior weeks 127.1).
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index) continued to show signs of slowing the momentum of its long-term decline.
The economy appears to remain somewhat supported by consumer spending with the deficit of the Production Index to the Consumption Index. Stress within the investor/business sector of US society continues to be suggested in the ongoing lag of production to consumption and the decline of the inventories measure.
I continue to worry that strong foreign demand for dollars right now that is draining money out of the US (not to mention the ongoing trade deficits draining money out of the US) is a grave risk to the US economy.
-Robry825
