Industrial production is up 0.6%. Autos are still hurting but other areas are taking up the slack. Capacity utilization is at 80.7%, up from 80.3%. Not too bad. Capacity utilization is a full percent higher than it was last year and now just 0.3% below the 1972-2004 average. (WSJ Article)
This could, of course, be seen as inflationary. We'll get a look at that tomorrow with the December CPI and the Beige Book. Most are expecting the core CPI to increase by 0.2%. If it is rises more than that, it would fuel talk of interest rate increases extending into March. (Remember, January is all but a foregone conclusion.) The Beige Book will give us some additional insight into whether and where business are finding themselves able to pass along higher energy costs to their customers. It will be two very useful data points in one day.
Among other items on the calendar this week are initial jobless claims and housing starts on Thursday. Friday brings the Michigan survey of consumer sentiment.
Stay tuned.
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