The US Industrial economy ratcheted ahead again last week (if pipeline scheduling is correct), while strong consumer spending eased off slightly.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) gained slightly to 121.8 (vs last weeks record 121.6). In its dailies (See the "Part 7" posts on the Investor Village site) the index started the week was choppy and a tad softer than the previous weeks strength, though firming late.
The Consumption Index eased off fo its second week in a row, edging down to 142.4 (from last weeks 145.0). In its dailies the measure was choppy and ended the week soft.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index) continued in its long-term decline.
Overall (as last week) the recovery appears strongly supported by buoyant consumer-spending, an uncharacteristically-large lead in the Consumption Index over the Production Index, firmness in industrial gas-flow scheduling, and continuing declines in the Inventories measure.
Of Concern remains the strength of the food group (a contra-indicator to consumption), suggesting a shallowness to the recovery in spite of its apparent breadth (suggested in the gas flows).
-Robry825
