6/15/11, "Consumers battle weaker growth, higher prices," Reuters
"The U.S. economy is facing a troubling mix of higher prices and weak growth.
Underlying U.S. inflation rose to its highest level in nearly three years in May while a regional factory gauge posted a surprise contraction this month....
Separate reports showed a surprise contraction for manufacturing activity in New York State for June and a disappointing 0.1 percent rise in May industrial output, though the latter was partly the result of a pullback in utilities....
Following a renewed decline in home prices in recent months, a homebuilder sentiment index published by an industry group plunged this month to its lowest since November 2010....
"Core inflation pressures are a lot stronger than we've been seeing in recent months," said Dean Maki, head of U.S. economic research at Barclays Capital in New York. "This will make the Fed more cautious on any additional actions."
U.S. stocks fell sharply and the dollar rallied as the U.S. weak data compounded worries over Greece's debt, with the S&P 500 index unofficially closing down 1.76 percent....
U.S. inflation proved considerably firmer than expected in May despite lower fuel costs, with the overall CPI rising 0.2 percent, double analyst forecasts. In the year to May, prices climbed 3.6 percent, the largest rise since October 2008."...
WAGES DOWN
"Labor Department data showed the inflation-adjusted weekly earnings of U.S. workers fell 0.1 percent in May, and were down 1 percent over the last year....
Output at utilities plunged 2.8 percent....
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UPDATE, 6/16/11, "Philly Fed Factory Activity Lowest Level in 2 Years," Reuters, CNBC
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