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June 14, 2013

Core Inflation Restrained. Rates Lower.

June 14, 2013

Core Inflation Restrained. Rates Lower.

Rates are down since yesterday as fears have eased, at least temporarily, that the Fed may slow the pace of QE imminently.

Producer Price Index (May 2013)
– PPI Month/Month +0.5%. Previous was -0.7%

– PPI core (less food & energy) Month/Month  +0.1%. Previous was +0.1%

– PPI overall Year/Year +1.8% – PPI core year/year +1.6%.

– Inflation is well-contained.  Attention should be paid to core.

Industrial Production (May 2013)
– Production Month/Month +0.0%. Previous was -0.5%.

– Capacity Utilization Rate 77.7. Previous was 77.8%.

– Manufacturing Month/Month +0.1%. Previous was -0.4%.

– Manufacturing in the U.S. is soft and is unlikely to become an economic force any time in the near future.

 Consumer Sentiment (June 2013)
– Consumer Sentiment Index 82.7. Previous was 84.5.

– This is a survey index which is supposed to be a leading indicator of consumer spending.   

– The previous reading of 84.5 was a post-recovery high.