Week In Review
Reinhart Partners is delighted to share news that senior partner Doug Fry has returned home safely from Afghanistan, after a 9 month deployment. Doug and his West Bend, Wisconsin medivac unit were deployed in January.
We are extremely proud of Doug and we hope you join us in welcoming him and his fellow patriots home.
Producer prices rose 0.4% in October, while consumer prices increased by 0.1% over the same time period. Year-over-year, producer prices are up 2.8% and consumer prices have risen 2.0%.
Inflation remains subdued (core consumer prices were up 1.8%), but is closer to the Fed’s 2% target. Declining inflation through the early part of 2017 was a big reason many economists felt Fed rate hikes were unwarranted. Today’s more stable inflation environment, should it continue, will give the Fed more cover to raise rates in December.
October retail sales rose 0.2%. Sales rose 0.1% excluding autos.
The retail sales report came in pretty much as expected. Nothing in the report would change the likelihood of a December Fed rate hike.
Industrial production rose 0.9%, versus expectations of a 0.5% increase. Capacity utilization rose from 76.4% to 77%.
Some of the jump in manufacturing is likely due to reconstruction after the hurricane season. While large increases in manufacturing may not continue in the future, recent gains should help support fourth quarter GDP growth.