The US Industrial economy continued its recent pace of slow back-tracking last week (if pipeline scheduling is correct), as both industrial production and consumer spending both eased again.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) eased for its fourth week in a row, slipping to 117.4 (from last weeks 117.8). In its dailies the week started firm but softened as the week progressed.
The paperboard-based Consumption Index also slipped, dropping to 123.9 (from last weeks 124.1). In its dailies the measure looked soft all week.
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 still retains its appearance of being narrowly supported by consumer spending (with the deficit of the Production Index to the Consumption Index), though that support continues to be chipped away at the level of consumption. 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.
This upcoming week will be one to watch for changes as Tuesday marks both the beginning of a new month and the beginning of a new quarter. Gas flows tend to like to change around such days, as factories & retailers adjust to changing trends in orders and inventories in their scheduling of production and purchases for the upcomming new month or quarter.
-Robry825
