More Good Economic News: Housing Starts Increased Sharply

Economic & Market News from Goldman Sachs & Company
I'm reposted some of the economic comments published by Goldman Sachs & Company in their Weekly Market Monitor dated June 19, 2009. As you can see, there is some really great news contained in their comments.

Housing Starts Increase Sharply
Housing starts increased sharply in May, up 17.2% (-45.2% yoy). Multifamily starts were a major driver, rebounding 61.7% after a 50% decline in April. Permits also increased, up 4%. Here, single family permits were the driver, up 7.9%.

Producer Price Index
The producer price index rose 0.2% in May (-5.0% yoy). Core PPI edged down 0.1% (+3.0% yoy). The core weakness appears genuine given that it was fairly widespread and not centered in normally volatile components.

Industrial Production Fell in May
Industrial Production fell 1.1% in May (-13.4% yoy), due mainly to difficulties in the auto sector. However, weakness continued across major categories. Reflecting the ongoing drop in production, capacity utilization fell to 68.3%, another all-time low. These readings make sustained upward price
pressure in the goods sector unlikely.

Consumer Price Index Rises
The Consumer Price Index rose a meek 0.1% in May (-1.3% yoy). Often errant food and energy were subdued, at +0.2% and -0.2%, respectively. Core CPI registered higher 0.145% (+1.8% yoy). Most components registered price declines with only vehicle prices surprising to the upside. Overall, the report paints a picture of prices that are largely in check.

Continuing Jobless Claims Fall
Initial jobless claims remained essentially unchanged at 608,000 last week, while continuing claims fell sharply and unexpectedly by 148k to 6.7mm.