Market Commentary

Economic Stats

Economic Stats

This morning a flurry of numbers were released from the various governmental offices concerning the economy and its direction for November. First, the PPI (Producer Price Index) showed stronger inflation than expected and more than in October. It was up .8% from up .6% the month before. Import prices were higher as well.

Retail sales were softer than expected. Up only .3% from October’s rise of 1.8% and those two numbers remained the same ever excluding autos. This hints at a weak retail sales holiday season so far.

The bright spots came in the form of the NAHB home builders index for December up to 84 from 83 and the Empire state manufacturing index up to 31.9 from 30.9 when it was expected to drop.

The FED is meeting, and they are looking at these numbers. They are likely unhappy with the inflation news of late, but what will they do about it? I think whatever they do will be very gentle. The economy is not that strong and with covid cases rising again they are not likely to want to adversely affect the economy.