Consumer Price: + 0.7% in May, the fastest acceleration in almost two years. The core consumer price index, excluding food-and-energy prices, rose a mere 0.1% in May, down from 0.2% in April. The consistently high energy prices clearly show their effect on consumer inflation.
Consumer Confidence Index: 108, up from 106.3 in April; consumers in the US are doing their part to keep the economy afloat. Retail sales jumped + 1.4% in May, double the rate that was expected.
Producer Price Index: + 0.9% in May, which is higher than expected; the core rate was a tame 0.2%.
Industrial Production: + 0.7% in April -- the Institute for Supply Management Manufacturing Index for May is 55.0, up from 54.7 in April. The direction is "growing" and the rate of change is classified as "faster." According to their survey, inventories are contracting at a fast rate.
Unemployment: 4.5% in May, unchanged from April
Trade Balance: - $58.5 billion April
Housing: We reported the dismal April number in our last report. Housing starts are still 16.1% below last year's pace, and permits are off by 28.1%. Lenders are expected to take back up to 900,000 homes because of foreclosures. This is sharply up from a yearly average of around 500,000 units. Experts have given up on a quick recovery, and the housing slump is now expected to last into early 2008. Current mortgage rates rose to 6.65% from 6.365% in early May.
Automotive: 1,022,744 vehicles were produced in May, or 4.0% less than in May 2006. For the first five months of 2007, the production number stands at 4,715,745 units, or 6.7% less than last year. Car sales rose 5.0% in May compared to 2006 but year-to-date sales numbers are down 1.2% compared to 2006.
Steel Production: 7.95 (e) million mt in April or 6.6% less than April 2006; in the first four months, 31.5 million mt were produced, which is 5.2% behind last year's pace.