Gary Thayer Increase Quotations

It's a good number for the economy. Labor markets are improving, and that increases the likelihood that the economy will remain strong.

The October home sales data were strong, but we are seeing more moderate price increases for new homes suggesting that the housing market is gradually cooling off.

The increases (in gas prices) looks like it's hitting a critical level.

It's still a good reading overall, but not quite as robust as we've seen in the last several months. The encouraging thing is that the employment component increased again. We are beginning to see businesses becoming a little more willing to hire.

We did see a big recovery in (producer) prices, but that was primarily in energy. Core prices increased only modestly and that's good news for the Fed.

This may help increase the inflation-fighting credibility of the Fed before we replace the chairman.

If you put the two months together it still looks as if retail sales were strong at the beginning of the year -- an average increase of 0.8 percent for each of the two months.