Data View

The US reported a slew of data and although there are some interesting nuggets, the data is unlikely to alter views on the state of the economy or the likelihood of QEII.

CPI was uninspiring, though the core rate slipped to 0.8%, which is the lowest level in nearly 50 years. Of note, the owners equivalent rent was unchanged for the second consecutive month. Apparel prices were unusually weak and medical prices were unusually strong.

Retail sales were a bit better than expected. The key here is the figure excluding autos, gasoline, and building materials, which is used in GDP calculations. This rose 0.5% after the July series was revised up to 1.0%. While yesterday's trade figures point to downward revisions to Q3 GDP forecasts, the retail sales report suggest an upward revision. Still to come are business inventories, which may also impact GDP forecasts.

Lastly, the Empire State survey was better than expected and this underscore that strength of the manufacturing sector, even though it has shed jobs in the last couple of months.