So the bad news is that the cost of raw goods is way up, February PPI jumps 1.6% month-over-month (more than double the estimate). The worse news is that Housing Starts look like some kind of half-remembered nightmare from 1933.
But here’s a more positive way of looking at both…
We already know that commodity costs, including oil, have retreated from their Middle East protest highs. We also know that the less Housing Starts and new-builds, the better. The housing market is awash with supply, no one in their right mind should be cheering any kind of construction equipment operating on a housing tract other than a bulldozer.
My favorite take on these numbers is Peter Boockvar‘s over at The Big Picture.