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March 15, 2013

Manufacturing up. Core CPI at Upper Acceptable Limit.

March 15, 2013

Manufacturing up. Core CPI at Upper Acceptable Limit.

CPI  (February 2013)

– CPI – Month/Month  0.7%

– CPI – Year/Year  2.0%

– CPI core (less food & energy) Month/Month 0.2%

– CPI core (less food & energy) Year/Year  2.0%

As with the data of the past few days we see that the large increase in the price of gasoline spiked the overall number but core remains at the acceptable upper limit.  The Fed  wants the CPI core Year/Year to stay under 2.0%.

Folks are not discussing enough the fact that the enormous expansion of money supply will inevitably cause inflation unless the Fed can miraculously reduce money supply and simultaneously not cause more unemployment and still keep inflation in check.

Industrial Production/Capacity Utilization  (February 2013)

– Production  Month/Month +0.7%

– Capacity Utilization Rate 79.6%

– Manufacturing  Month/Month +0.8%

These numbers are healthy jumps from last month’s disappointments.

Empire State Manufacturing Survey  (March 2012)

– General Business Conditions Index 9.24.  Previous was 10.04.  Any positive number indicates growth.  This is a survey index.