The US Industrial turned and advanced (if pipeline scheduling is correct), recently-strong consumption continued to backtrack, and congress finally figured out how to "band-aid-up" the economy without killing it in the process.The Production Index (In terms of its 28-day moving average of gas-flow scheduling into US industrial facilities) broke its string of five down-weeks in a row and climbed to 121.9 (vs last weeks 121.3). In its raw dailies (above) the week saw the measure mostly throughout the week to its close.
The Consumption Index, conversely, put in its second down-week in a row... falling to 137.6 (from last weeks revised 140.0). In its dailies the measure started the week strong and maintained a firm look throughout the week.
The Inventories measure (the cumulative weekly difference between the Production Index and the Consumption Index), continued its long-term decline.
Internally, economic tension remains well-evidenced within the gas-flows (in stark contrast to the Fourth-Qtr-2011 flows which were clearly bullish almost to quarters end). The sea-saw nature of the Production & Consumption indexes (one climbs while the other falls, then vice-versa) is evidence that the "fulcrum" of the economy is unmovingly anchored in the mud. The strength in the food-group indicative of doubt in the consumption that drives the economy.
I was glad to see congress finally able to come to grips with the payroll-tax-et-all issues without the traditional public airing-of-the-dirty-laundry. That is not to say that there is no dirty laundry... but that they were actually able to get something done without resorting to flinging the stuff down the Capitol-Hill steps!
Overall, the economy appears adrift and continues to await cues as to which direction to turn.
-Robry825
