US data all positive

<p>Kia ora,</p><p>Welcome to Wednesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news the US economy seems to be settling in for a longish positive run.</p><p>But first, the overnight <a href="https://www.globaldairytrade.info/en/product-results/" target="_blank"><strong>dairy auction</strong></a> brought higher prices, up +1.9% in US dollar terms. This is the sixth consecutive rise since September during which period the index has risen +14%. Perhaps butter was the standout, rising +3.5% from the prior event, but WMP rose the average +1.9% and SMP was up +1.4%. Volumes sold at this auction exceeded 30,000 tonnes, the highest of the year. In NZ dollars, <a href="https://www.interest.co.nz/charts/commodities/dairy-prices" target="_blank"><strong>today's prices</strong></a> are up +3.5%, taking them to their highest since 2007. So this event will underpin current farmgate pay-out price forecasts, perhaps give them some upside.</p><p>US <a href="https://www.census.gov/retail/marts/www/marts_current.pdf" target="_blank"><strong>retail sales data for October</strong></a> came in quite positive, up +1.7% with both prior months being revised higher too. These were the largest rises in seven months. The rises were broad-based and better than analysts were expecting. At the same time, <a href="https://www.census.gov/mtis/www/data/pdf/mtis_current.pdf" target="_blank"><strong>business inventories</strong></a> remain unusually low.</p><p>October <a href="https://www.federalreserve.gov/releases/g17/current/default.htm" target="_blank"><strong>industrial production</strong></a> bounced back stronger than was expected too, with a healthy rise in October. This was broad-based as well, with <a href="https://fred.stlouisfed.org/series/TCU" target="_blank"><strong>capacity utilisation</strong></a> rising even if it remains well below where it should be.</p><p><a href="ht