1. Industrial production barely grew in June.

• Manufacturing output stalled completely, while manufacturing excluding autos contracted slightly.

– Utilities output eked out a gain.

• This chart shows that industrial output has been supported by capex-sensitive business equipment.

• Capacity utilization held steady.

2. Housing starts rebounded sharply, …

… driven entirely by volatile multifamily starts, while the core single-family segment edged down.

• Housing units under construction, a more important driver of residential investment, have been broadly stable.

• Building permits declined for a second consecutive month.

3. The University of Michigan Consumer Sentiment Index rebounded sharply, topping expectations.

• The increase was driven by an improvement in both the current conditions component …

… and the expectations component.

4. Consumers’ median inflation expectations over the next year eased, while longer-term expectations held steady.

5. Import prices unexpectedly rose in June, driven by nonfuel components, while export prices fell more than anticipated.

• Import prices for computer peripherals and parts rose 2.3% month-over-month and 41.6% year-over-year, pointing to further upward pressure on core inflation from electronics prices this year.