Economic Data 09/13/12


Claims: Yuck

So much for those nicely-lower numbers last week eh?

In the week ending September 8, the advance figure for  seasonally adjusted initial claims was 382,000, an increase of 15,000 from the previous week’s revised figure of 367,000. The 4-week moving average  was 375,000, an increase of 3,250 from the previous week’s revised average of 371,750.


Let’s look at the big table.

So we’ve got regular claims down but also EUC claims and now initial claims are spiking again.  This appears that any “improvement” was a mirage, while the march of those rolling off extended benefits continue.

And that, my friends, is the bottom line.

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PPI: Some Like It HOT!


The Producer Price Index for finished goods rose 1.7 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This increase followed advances of 0.3 percent in July and 0.1 percent in June, and marks the largest monthly rise since a 1.9-percent increase in June 2009. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 1.1 percent in August, and the crude goods index rose 5.8 percent. On an unadjusted basis, prices for finished goods climbed 2.0 percent for the 12 months ended August 2012, the largest advance since a 2.8-percent increase for the 12 months ended March 2012. (See table A.)

Well now.

But the big table — where’s it coming from?  Food and Energy.

The bad news however doesn’t end there — it also extends to crude goods where the escalation went all the way down the scale and did not stop with food and energy.

Coming into the announcement on “expected” QE this could be rather interesting…… this much is certain — a nearly 10% rise in energy costs at the crude level, and at 6.4% at the finished level, isn’t the sort of thing you want to see if there is more credit cheapening coming from The Fed.

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