Inflation Rises in November, Durable Orders Flat


inflationU.S. stock indexes are higher on Wednesday after inflation rose in November at levels consistent with forecasts while durable orders for November were flat and fell less than expected.

This morning crude oil (NYMEX) is mounting a comeback and is up over 2 percent, surpassing $37.00 a barrel.

The Bureau of Economic Analysis reported today that inflation, as measured by personal consumption expenditures (PCE), the Federal Reserve’s preferred inflation gauge, rose 0.1 percent in November with the PCE index.

Core PCE inflation, which strips out gas and energy prices, rose 0.1 percent in November compared with an increase of less than 0.1 percent in October.

The PCE index rose 0.4 percent on an annualized basis from November 2014.

The Core PCE index, which the Federal Reserve uses to determine whether inflation is moving towards their 2 percent inflation target, was 1.3 percent in November, matching the same level in October.

The Census Bureau reported this morning that new orders for manufactured durable goods increased 0.0 percent ($0.1 billion) in November, virtually unchanged to $238.8 billion in November.

This small increase marks 2 consecutive months of gains but falls short of October’s 2.9 percent increase.  Economists from were forecasting a decrease of  -1.1 percent in November.

Excluding transportation, new orders in November decreased 0.1 percent, missing the estimate of + 0.1 percent from Excluding defense, new orders decreased 1.5 percent.

-Johnathan Schweitzer


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