Industrial production fell 0.4% in October. Retail sales were down 0.3% in October. The producer price indices fell 0.2% in October as the topline consumer price index rose 0.1% and the core CPI increased 0.2%. The U.S. Treasury reported a $120 billion deficit in October. Business inventories increased 0.7% in September. Initial jobless claims spiked 78,000 to 439,000 for the week ended 11/10.
• Industrial production unexpectedly declined 0.4% in October. The Fed said that hurricane Sandy cut output by close to 1.0%, but fears over the fiscal cliff are also having a negative impact as businesses hesitate to raise output and invest.
• Retail sales fell 0.3% in October. A decline in auto sales in the northeast, due in part to hurricane Sandy, contributed to the decline. Excluding autos, sales were flat.
• Both the topline and core producer price indices declined 0.2% in October. A slight increase had been expected.
• The topline consumer price index edged up 0.1% while the core CPI rose 0.2%.
• The U.S. Treasury reported a larger-than-expected deficit of $120 billion in October.
• Business inventories increased 0.7% in September.
• Initial jobless claims surged 78,000 to a level of 439,000 for the week ended November 10th. This marks the highest level of claims since April 2011, and the largest one-week surge since Hurricane Katrina in September 2005 (when claims rose 96,000). Hurricane Sandy contributed to the rise in claims, but it is also suspected that fiscal uncertainty on the part of businesses played a role in the rise.