We still have a very weak world economy, despite the fact that the U.S. economy is still doing pretty good, ... We're seeing lower prices basically because there is more production out there than demand.
The good news is that what we've seen is an unchanged reading for the nonpetroleum items and it looks like what we're still seeing is lower prices for many consumer items.
Companies may be paying more for raw materials and energy, but that is at least partially being offset by lower unit labor costs. That, I think, is likely to keep inflation contained.
The upturn in confidence is an encouraging sign that economic conditions are stabilizing after the hurricanes. Lower energy prices are helping, but the upturn in employment is also a plus.
The employment component was just a tad lower than what we saw in November so it's still a healthy number.