Tuesday, August 16, 2011 10:22 AM – Economic Growth #s for US, EU

Industrial production +0.9% to 77.5
Housing starts -1.5%
Import prices +0.3%

The main reason for the increase in industrial production were the bounce back in auto production after a big slowdown from part shortages related to the Japanese disaster. Mining was up 1%.

Housing starts were down after two months of increase. Apparently, a lot of 20-somethings are living with their parents. If you can’t get good housing #s with mortgage rates at 4%, you know that will take a while to come back. I figure another couple years.

The CPI is due out later this week and will probably be up in line with the import prices reported today.

Stocks are down over 1%, following Europe’s lead. Europeans are seeing a big slowdown in their economies. Even mighty Germany grew only 0.1% last quarter, though that would have been higher if not for an early spring that pulled seasonal construction activity into the 1st quarter.

  • GDP growth #s for the 5 largest European countries in 2Q/2011 (70%+ of EU total output)
  • Country, GDP Growth, % of EU
    Germany 0.1%, 20%
    France 0.0%, 16%
    UK 0.3%, 14%
    Italy 0.2%, (est) 13%
    Spain 0.2%, 9%

    Other Notables
    Greece -6.9%
    Portugal 0.0%