Import Prices +0.4%
Export Prices +0.5%
Econoday reports: The import price index rose 0.4 percent in November, reflecting mild but broad increases across many categories. Year-on-year import prices are up 2.1 percent, above October's year-on-year rise of 0.9 percent. Import petroleum prices rose 1.1 percent and are up 11.9 percent year-on-year. Non-petroleum import prices, led by price increases for metals and chemicals, increased 0.3 percent and are up 1.1 percent year-on-year.
Export prices rose 0.5 percent in November once again led by higher agricultural prices. Prices for nonagricultural exports rose 0.2 percent. Export prices year-on-year are up 1.8 percent. Motor vehicle and parts was the only major export category to post a decrease, down 0.1 percent.
Jobless Claims 378,000
Econoday reports: Initial jobless claims rose 13,000 in the week ended December 6 to 378,000, disappointing expectations for a level of 360,000 and indicating little new momentum in hiring. The four-week average, especially important to look at during the calendar disruptions of the holidays, rose 2,250 to 364,750, consistent with steady but sluggish improvement in national payrolls. Initial claims in the prior week were unrevised at 365,000.
Retail Sales +0.9%
Econoday reports: Retail sales jumped by 0.9 percent in November, slightly above analysts' expectations. October sales were unrevised -- dropping 0.3 percent. Retail sales were 6.9 percent above last year's levels. Excluding autos, retail sales were up 0.4 percent, also slightly above analysts' expectations. When compared with last year, retail sales excluding autos were up 6.5 percent. Excluding autos and gasoline station receipts, retail sales were up 0.3 percent after increasing by 0.6 percent in October.
Business Inventories +0.4%
Econoday reports: Business inventories rose a higher-than-expected 0.4 percent in October compared with September and were up 1.9 percent year-on-year. September business inventories were revised to an increase of 0.4 percent from an initially reported rise of 0.3 percent. Business sales rose 0.7 percent in October and 5.1 percent year-on-year. The inventories-to-sales ratio slipped to a record low of 1.35, consistent with other indications that businesses continue to manage inventories with greater efficiency.
Ten-Year Treasury Bills 4.365%
Econoday reports: In sloppy results, the Treasury auctioned $12 billion of 9-1/2 year notes at an awarded yield of 4.365 percent, up 0.5 basis point from last month's auction. The awarded yield was nearly 3 basis points higher than the yield on the when-issued note at the bidding deadline. The bid-to-cover was weak at 1.78 vs. 1.90 last month. Indirect bidding, that is bidding from non-primary dealers, was also weak at 24 percent, well below the 38 percent level of last month's auction which was for a much larger offering of $17 billion.
October 28 FOMC Minutes
Econoday reports: At the October 28 FOMC meeting, members felt that they needed more definitive signs of inflation to make significant changes to policy and their statement. They did realize that they would soon need to change the statement and began discussions at that time. Fed officials saw strengthening holiday sales as an indication that the economy was strengthening. In addition, they felt that rising import prices coming from a weak dollar, typically viewed as inflationary, as a factor offsetting the potential for disinflation. Also, a weak dollar would help boost export growth -- and help strengthen economic activity.
03.12.11 16:14 #