An Inflation Problem

The leading indicator for the chemical industry rose 1.8% in June, driven by an increase in the average chemical industry stock price and new orders for factory products. However, two other important components of the indicator—chemical process industry output and housing starts—each posted declines in June. The purchasing managers’ index, an indicator of manufacturing sector health that comprises new orders, inventory levels, production, supplier deliveries, and employment statistics, rose in June after four consecutive months of decline, says...

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