Industrial production slipped .4% in August as capacity utilization dropped to 75.5% missing expectations as did retail sales with a .3% decline in August.
The New York Fed regional index managed to gain 2.22 points to a still negative 1.99 in September, weakness was broad-based as this index missed expectations as well.
The more I think about the recent 5.2% gain in income the more I scratch my head as I don’t recall this gain being confirmed anywhere else. It certainly isn’t reflected in the retail sales data or the tax data. A number of questions have been raised with respect to the series methodology and frankly I’m having a real hard time accepting the report at face value because it just doesn’t add up.