It would have been a lot more comforting to see greater strength in the ex-auto component than in the headline figure.
It seems as though the inflation report provided a few component surprises but no overall surprises as apparel prices continued to drop despite the expectation that they would stabilize or rise slightly.
The headline number is encouraging, but if you strip out the volatile components and look at core growth, it's telling you we're turning the corner, but we're not running around the corner.
The orders component should jump out and catch your eye. We're still in expansion mode, and recovery is in no jeopardy of derailing, but it's not racing away from us.
The orders component should jump out and catch your eye, ... We're still in expansion mode, and recovery is in no jeopardy of derailing, but it's not racing away from us.