8:30 AM ETThe fall in food prices was broad based but led by a monthly 21.8 percent plunge in prices for fresh and dried vegetables. Fresh fruits and eggs also declined sharply. Within energy, home heating oil fell 8.1 percent while gasoline dipped 1.6 percent. Residential gas and electricity were actually up.
For the overall PPI, the year-on-year rate decelerated to 2.7 percent from 5.1 percent in May (seasonally adjusted). The core rate eased to 1.0 percent from 1.3 percent the month before. On a not seasonally adjusted basis for June, the year-ago increase for the headline PPI was up 2.8 percent while the core was up 1.1 percent.
Empire State Mfg Survey
8:30 AM ETHighlights
The New York manufacturing region reports an abrupt slowdown in growth. The Empire State general business conditions index fell nearly 15 points to 5.08. Growth in new orders slowed to 10.13 from 17.53 suggesting the upward slope of the nation's factory recovery may already be tapering off significantly.
Jobless Claims
8:30 AM ETHighlights
In a report filled with noise, jobless claims plunged 29,000 in the July 10 week to 429,000 (prior week revised 4,000 higher to 458,000). Manufacturing retooling centered in the auto sector, for this year delayed retooling, makes the report very difficult to read. The four-week average is the best handle and it's down 11,750 to 455,250 for the lowest reading since mid May.
Whatever improvement there is on the initial side is offset by a big 247,000 jump in continuing claims to 4.681 million in data for the July 3 week. The four-week average for this reading is up 22,000 to 4.581 million for the highest reading since mid June. The unemployment rate for insured workers rose two tenths to 3.7 percent.
Industrial Production
9:15 AM ETHighlights
After almost a year of strong gains, industrial production slowed in June. And it would have been negative without a surge in utilities output-likely weather related.
However, manufacturing fell 0.4 percent in June, following a 1.0 percent jump in May. For other sectors in June, utilities output was up 2.7 percent while mining gained 0.4 percent.
Overall, the industrial sector slowed in June, indicating that the recovery has lost a little momentum.
Philadelphia Fed Survey
10:00 AM ETHighlights
The top of the slope is here already for manufacturing, at least this is the indication from this morning's deep run of data. The Philadelphia Fed's general business conditions index came in at 5.1 in July indicating a slower rate of growth than June's 8.0 reading. In an unpleasant warning, new orders fell to minus 4.3 to mark an end to a full year of growth. If new orders extend their contraction in next month's report, the health of the region's manufacturing sector will be in question. If the ISM report for July also shows contraction for new orders, the health of the nation's manufacturing sector will suddenly become a big issue.
Unfilled orders, at minus 8.6, show significant contraction as they did in this morning's Empire State report.
The manufacturing sector, which is leading the economic recovery, has lost steam far short of full recovery from its 2007 peak. Stocks and commodities are moving lower following this report.
EIA Natural Gas Report
10:30 AM ETHighlights
Natural gas in storage rose an as-expected 78 billion cubic feet in the latest week.
Edited by Rogerdodger, 15 July 2010 - 09:31 AM.
