The US Industrial advanced last week (if pipeline scheduling is correct), while consumer-spending added to its recent surge.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) finally broke its string of four down-weeks in a row, and inched higher to 114.5 (from last weeks 114.2). In its dailies (See the "Part 7" posts on the InvestorVillage site) the index started the week a bit on the firm side, then sharpened nicely through Thursday (to close out the month of October) before softening on Friday.
The paperboard-based Consumption Index also inched ahead (third up week in a row), rising to 140.9 (from last weeks 139.5). In its dailies the measure started the week flat to slightly firm but accelerated nicely through to the end of the week.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index) is continuing its pattern of re-accelerating decline.
Overall, the US industrial economy looks to continue to be firmly underpinned by an excess of consumption over production, a recent surge in consumption, and the ever-declining Inventories measure.
Continuing concerns continue to be the dismal mood of the business/Investment side of the US citizenry (and its whithering effect on capitol/formation and new business starts), massive monetary outflows from the US (believed driven by demand from foreign sources for US dollars), and poor US monetary, fiscal, and political posturing.
-Robry825
