The Economy Is On Fire -- June 20, 2023

Locator: 44983ECON.  

CNBC: for the first time in a long time, I spent much of the noon hour watching CNBC. 

• the big story: the huge housing numbers for May that were released today.
• those numbers are re-posted below, below "the fold."

The Fed:

• aggressive this past year ( 2022 - 2023) and still unable to slow the economy.
• inflation has come down significantly; from 9% to 4%?
• "everybody" agrees: the Fed will have to keep raising. 
• the big question: is JPow unhappy that so many folks are working or that he missed the market rally?
  

Diesel:

• this is the big story; only the housing story is bigger.
• this economy is on fire.
• US refiners are working at capacity, can't keep up with diesel demand.
• every consumer diesel has become more efficient in their use of diesel, and still the refiners can't keep up.
• fewer and fewer utilities to produce electricity.
• best example of efficiency, pointed out by reader, the rail industry:
• fifty years ago, cargo trains were 50 cars
• today, unit trains are 110 cars

After two lost decades, the Biden economy is on fire.

***************************
The Housing Numbers Today

Reposting:

Locator: 44977ECON.   

Housing starts, month/month:

• May, 2023:
• forecast: a decrease, estimate -0.1%
• actual: an astounding +21.7%
• prior:
• revised down
• original was: +2.2% month over month
• revised: -2.9%

Housing permits, month/month:

• May, 2023
  
• forecast: 0.6%
• actual: a remarkable 5.2%
• prior: 
• no change
  
• original was: -1.4%
• revised: -1.5%
  

Link here.

Someone needs to "draw" simpler graphs. LOL.