A look at declining industrial production
PNC Wealth Management's Bill Stone talks with Steve Chiotakis about what the fall in industrial production indicates for the economy, and what the lousy retail numbers mean.
More on America's Financial Crisis
TEXT OF INTERVIEW
Steve Chiotakis: All right Bill Stone, Chief Investment Strategist at PNC Wealth Management, joining us right now live from Philadelphia. Good morning, Bill.
Bill Stone: Good morning.
Chiotakis: Thanks for being with us. More barometers of course. The nation's industrial production fell in April, the smallest amount in half a year. Another report out of New York indicates pretty much the same. I mean, I don't like celebrating decreased production, but is this good news?
Stone: It is good news. It's again providing further evidence that at least the economy seems to be stabilizing. You know that thing that people keep saying is getting worse at a slower rate, but it's much better than the free fall.
Chiotakis: U.S. consumer prices, Bill, didn't budge in April. But for the 12 month period it's the biggest recorded drop in like more than 50 years. Retail numbers were lousy this week, yet prices were lower. If I'm a business trying to sell something, what do I do?
Stone: Well I think it does, outside of tobacco, almost all of the prices were down. And it is impacting -- particularly some of the retailers, as far as their earnings go, because they can't sell things for as much. But part of that should help, or actually turn around, as the economy hopefully starts to rebuild itself. At least that's what the policymakers are trying to accomplish.
Chiotakis: It's all sort of teetering on deflation, inflation, all of that. Trying to keep a healthy balance.
Stone: Exactly.
Chiotakis: All right, Bill Stone, chief investment strategist at PNC Wealth Management. Thanks for being with us. Have a great weekend!
Stone: Thanks. You too!
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