The real 10-yr Treasury rate was negative for the fifth time in eight months, keeping the annual change in the rate negative for the 13th month in a row.
Accelerating growth in the monetary base is a positive sign for capital equipment consumption later in 2020.
Compared with one year ago, capacity utilization contracted 2.4%.
Durable goods production growth will likely turn to contraction in the next month or two.
Machine unit orders contracted just 1.2% in December after four consecutive months of contracting more than 23%.
While new orders in durable goods contracted at their fastest annual rate in December, the rate of contraction should begin to slow in early 2020.
In December 2019, real disposable income was $15,107 billion, which was lower than two of the last three months.
December’s durable goods spending grew at its fastest rate since May 2018.
January’s GBI reading ends a five-month trend of accelerating contraction in manufacturing, representing the highest Index reading since June of 2019.
In November, cutting tool orders contracted 11.3%, the fastest rate of contraction since July 2016.
December was third month in the last four that housing permits increased more than 12%.
In December, the monetary base was $3.427 trillion, which was its highest level since November 2018.
Mexican Media Brands