The Latest Economic Data Deluge

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Data released today shows that:

  1. manufacturing PMI (the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories) has declined
  2. manufacturing prices (the relative level of prices paid for goods and services) has increased
  3. construction spending (the total amount that builders spent on construction projects) declined sharply

as shown on the three graphs below.

This latest data shows a contraction in manufacturing and construction spending while under the influence of higher manufacturing prices. As related to the personal income/spending/price of goods and services scenario that I described in my last post, this does not provide the proper support necessary for healthy and sustainable economic growth.