A quick glance at the charts to the right should tell investors all they need to know about the current state of the U.S. economy.
Beginning at the top, growth in Industrial Production remains positive rising +0.5% MoM in March while Capacity Utilization for the same period rose to a better than expected 78.0%.
The Unemployment Rate in the U.S. came in at 4.1% at the end of March as 103k new jobs were created. Consumer Confidence continues to climb with April’s reading coming in at a better than expected 128.7, while the S&P CoreLogic Case-Shiller Home Price index marked a new high at 197.0, rising +6.3% YoY.
At the bottom right we see both producer prices (PPI) and consumer prices (CPI) trending higher, yet at a gradual pace. Lastly, more evidence of the strong labor market is the chart showing the 4-week moving average of initial jobless claims which continues to bottom out.