Latest economic indicators more ho-hum than ho-ho-ho

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Wall Street may be humming along, but on Main Street -- where the voters live -- the economic news is, at best, ho-hum. The Federal Reserve said today industrial output edged up 0.1% last month, after a 0.6% advance in September. Meanwhile, the Labor Department reported today that prices on the wholesale level increased more slowly than forecast in October, meaning that inflation was tame.

Less industrial output and stable prices, or even slightly lower prices in some core categories such as food, mean the economy is essentially stagnant after a harsh year. It is the equivalent of a poor swimmer continuing to tread water as his head goes above and below the surface.

The choppy indicators have helped push Wall Street higher as the Dow Jones index is well above 10,000. But according to today’s Gallup’s Economic Confidence Index and Job Creation Index, the buoyant mood hasn’t worked its way to Main Street.

Consumer spending is essentially flat compared to the prior two weeks and remains down 23% from the financial-crisis-depressed level of the same week a year ago, Gallup reported.

Self-reported average daily spending in stores, restaurants, gas stations and online averaged $62 last week, Gallup said, compared to $65 and $67 in the previous two weeks.

Economic confidence is much higher than it was at this time last year, but consumer spending has remained flat and continues to trail last year’s by 20% to 35% on a weekly basis, Gallup said.

Consumer assessments of the current economy remained chilly, with 48% rating the economy poor and 11% rating it excellent or good.

-- Michael Muskal
Twitter.com/LATimesmuskal