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Today's Full Economic Data Dump: Claims, Empire Manufacturing And PPI, Where Prices Paid Literally Explodes
Here is today's full data dump, presented in summary form
- Initial claims: 351K vs 356K Expected, Previous revised higher of course from 362K to 365K, just as we predicted last week.
- This number will be revised to +354K next week.
- Empire Fed: 20.21, Exp. 17.50, up from 19.53 previously
- New Orders dropped 6.84 vs 9.73
- Prices Paid explodes to 50.62, 25.88 previous. Biggest Rise since January 2009
- PPI: 0.4% vs 0.5% Exp, 0.1% Previous
- PPI ex food and energy: 0.2%, Exp 0.2%
The only two charts of note from today's data dump that matter: Prices Paid, +25, and Prices Received: -2. Goodbye corporate margins.
Prices Paid:
Prices Received:
The jump in Prices Paid was the biggest one month change on record, matching only one time in history.
Prices Paid - Received, aka inverse corporate margins:
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"Prices Paid explodes to 50.62, 25.88 previous. Biggest Rise since January 2009"
Clearly this is important...someone want to tell me what "Prices Paid" is...for what?
Input costs; raw materials.(i don't know if labor is included.)
Prices Rec'vd being how much they can sell their finished products for.
"Goodbye corporate margins."
Why do I have the feeling that even that will be viewed/traded as bullish today?
Inflation? What inflation?
@Ahwooga
Temporary.
Gimme an "H"...Gimme a "Y"...Gimme a "P"....
Only one way out, that's straight through the roof.
Not your roof, though - you won't have a roof by that time.
Inflation = no QE3
Inputs (commodities, etc.)
I work at making things, and 3/4ths of our sales are overseas. We saw exactly this type of jump about a month ago from our raw material suppliers. Specifically, China boosted our raw material prices 16-25% in one fell swoop. Of course we will be passing these costs to our customers where allowable. It has been noted that further increases are expected, as well.
Same here. There is no room on the margins. We are as efficient as we can be, from everything management right on down to the productivity of the soil. Any increases in raw materials and the cost of maintaining equipment will be promptly passed along to the customer.
Presuming the consumer can stand any price increases (you're also competing with rising gas prices, among other things).
So you're saying that the "trimming the fat" recovery loses steam when there is no more fat to trim and margins continue to collapse? Just don't mention it to cnbc.
This is a diffusion index.
It's not a direct measure of the magnitude of price rises or drops. It shows how many co.s report experiencing price rises, minus how many report costs falling(neutral reporters left out).
So, prices didn't rise by 50.62, but ~25 more co.s out of 100 now report rising vs falling prices, for inputs.
Margin compression, bitches!
Totes. File under "Bullish"
http://www.newyorkfed.org/survey/empire/empiresurvey_overview.html
seasonal maybe?
Transitory.
Data indicates slower manufacturing growth -- expectations of new orders in Empire survey 6 months ahead fell for the 3rd consecutive month.
Just last month my wife and were talking about how long we've been preparing, wondering when the collapse would occur, and how much longer we had to make ready. Looks like these numbers show we're there--and it'll be felt starting in about another month. Queue panic probably around 1 May for the sheeple. This is going to be horrible.
One can only hope (and change). BWOOOOOOHAHAHAHAHAHAHAH
Rombama economic reporting...... BLS was outsourced by Massachusetts... Revision _444% down... for all 2011 from 41,000 growth to 9,000.
http://www.boston.com/Boston/businessupdates/2012/03/january-unemployment-rate-holds-steady-mass-percent/tiljJTxuIVvSu3aqva9ozK/index.html
"Employment grew by just over 9,000 jobs in 2011, compared with initial estimates of nearly 41,000, according to the new data.
The US Department of Labor revises state employment data annually based on additional information that becomes available over the course of the year. The data could be further revised next year.
State Secretary of Labor and Workforce Development Joanne F. Goldstein said that she believes the federal revisions underestimated the job growth in the second half of 2011, and the state added more than 9,000 jobs over the course of last year."
AND 7 TRILLION TO TARP.... rotate out of financial services just funding hording from non growth bottom line non top line producers.
I saw an article like that for Ohio as well. The real jobs created number was magnitudes below the "official" estimate. Something like +110k was revised below 8,000.
There may have been many people who got jobs and lost them throughout the year, but at the end of the year the total state employment number was only 8000 higher than the end of 2010.
Blame it on the weather, sun spots; anything but the real reason of the economy slowly going into the tank; although now it appears that the pace of decline may be increasing. Funny that we haven't heard the words "green shoots" and "recovery" lately.
/sarc
Funny how one fraudster predicted an entire societal shift.
http://www.youtube.com/watch?v=NwrL9MV6jSk
Bankster's theme song, Obama and Bernanke, are the Frontmen.
This is one of those very very rare instances where the fed should reach in it's tool bag and print mo money. Wouldn't that be helpful ?
Once again we get an unemployment claims beat that really would have been a miss if the true number was reported.
CUE EVERY MAINSTREAM MEDIA HEADLINE:
Lower initial claims once again show healing job market
Strength of job market confirmed
Apple to $800 a share on strength of job market
Don't even know why we bother. Everything's bullish. Doesn't matter what the techs or the fundies of the market are. What matters is that Becky Quick was all smiles this morning with futures up a whopping 4 points, glowing green, talking about how great it is that Leader Obamao is tapping the SPR becauase his..er, Presidency might be at stake. WINNING!
And then you had the governor of Delaware talking about how Happy Days are here again because unemployment in his state is only a measly 7%.
But it doesn't matter how much things really suck, because Quick, Kernan, Liesman and all the rest have no worries. They great unwashed middle class might be sucking on rocks for nourishment, but no matter. Perception is reality to the sheeple.
Good news is good news and bad news is good news. Party on.
... bullish.
I have something totally different to add to this conversation, and it is just one little word:
BULLISH!
bullish?
bullish.
also, i like cheese.
bearish
Seems extremely bearish. Margins will be down and Fed reluctant to print.
its all over- for the shorts and for this loser site. its turning out to be like occupy wall street - roll up your tent and go back to your bridge boys.
Initial jobless claims SLOWLY fall, mortgage rates on the rise, Greece cuts benchmark rate by 50%. Hot fun in the Spring time!
http://confoundedinterest.wordpress.com/2012/03/15/initial-jobless-claims-fall-too-slowly-treasury-and-mortgage-rates-rising-greek-benchmark-bond-falls-by-50/
Fed seems trapped to me. Print and inflation jumps. Inflation jumps and corp profits drop. Profits drop and corps lay off people to try and boost profits. UE up then GDP down. GDP down means Obama out. Obama out means Buck Fernankie out.
Do not print and market heads down, even crashes. Great Depression stock analog repeated.
No way out.
Hyperinflation is priced in.
This will help China with their overemployment problem and reduce oil consumption.
BULLISH!
Now excuse me; I need to put on my power tie. I have got a interview for an unpaid internship at CNBC.
Eat your heart out losers.
The consumers can't take the price increase... so maybe they'll do like on Black Friday and sell at a loss... I wonder how long that will last.
Alright, lets see if we can figure out a way that this is negative for gold somehow. I'll go first:
Since prices are exploding, people won't have any money eftover to buy gold after buying necessities. Therefore gold is about to collapse.
Am self employed, in past 30 years have never seen this price volatility and uncertainty. Am used to annual price increase from suppliers maybe 5-7%, which worked planning through 90-180 day cycles. Now suppliers can't reprice quick enough. 3 increases in 2011 up 15-25% total, 2 this year,depending on supplier, on big ticket items... just passing along to customer so far. Yes, I am blessed, or lucky, I still have customers. Did I mention local factory closing with projected 25% increase in property taxes? local countdown has begun. On a lighter note -Many, many thanks ZH for serving up reality, one article a time.