The NY Fed manufacturing Index System fell by -20 points in March. This is so dramatic because one would have to assume that the war industry actually makes a major contribution to general production. Obviously, the current geopolitical situation is not yet sufficiently under steam to drastically boost manufacturing activity. The Biden administration still has a lot of work to do before the elections.
How does this square with hot PPI?
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there could be a basis effect in the calculation of the ppi. we have seen that commodity prices were disinflationary last year and partly deflationary and came down. and now they are rising moderately, as you can see with oil. i suspect that this is the reason
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"Build bullets, win wars!"
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