The US Industrial economy took a big leap forward last week (if pipeline scheduling is correct), with pronounced gains to both the production and consumption index, as the 2011 Christmas-shopping season continues to rapidly strengthen. A bullish "event" to the economy appeared to happen Wednesday (Dec 14th) across the gas flows and especially into consumption.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) climbed for the 9th time in the last 10 weeks, rising to 123.5 (vs last weeks 122.6), its highest reading since June 15th, and closing in on its May 31st all-time high (124.8). In its raw dailies (above) it was an exceptional week, gaining a whopping 5% over the prior week alone and easily eclipsing seasonals.
The Consumption Index advanced as well (breaking its previous string of three off-weeks in a row), lifting to 136.9 (from last weeks 133.3). In its dailies the measure started the week firm and maintained that strength throughout the week.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index), continued its long-term decline.
For the time being, the economy remains firmly supported by last weeks bullishness to both production and consumption, and is well-evidenced in the firmness of the Aluminum, Automotive, Copper, Food, Glass, Paper, and Refining flows, and is also supported by recent-firming trends in Steel (indicative of durable goods starting to rebound), and meekness within the Food-Group measures.
-Robry825
