The Consumer Price Index was unchanged (seasonally adjusted) in April at 212.671 (1982-84=100), as expected, after decreasing 0.1% in March, increasing by 0.4% in February and a 0.3% gain in January.   Over the year the index is down by 0.7%, where March (down 0.4% over the year) and April mark the first instances of a 12-month decline in the CPI since 1955, with fallen energy prices from their July 2008 highs pulling down the price index. The energy index decreased by 2.4% in April after falling 3% over the previous month, while down by 25.2% over the year. The food index fell by 0.6% over the month and is up by 3.3% over the year. Excluding food and energy prices, which tend to be most volatile in terms of expenditure categories in a typical consumption bundle, the Core CPI is up by 0.3% in April, while over the past year, the Core CPI increased 1.9%.  The Tobacco Index increased by 9.3%, making a 40% contribution to the Core CPI index, as a consequence of the imposition of higher federal excise taxes on cigarettes, where consumption tends to be more recession proof than other forms of expenditure, such as travel, in efforts to increase government revenue.

Net Foreign Purchases for March increased to $55.8 billion in March, up by $33.8 billion from $22 billion in February.  Net foreign purchases of long-term U.S. securities were $56.4 billion, $30.0 billion of which were from private foreign investors purchasing more U.S equities, and $26.4 billion purchased by foreign official institutions which have purchased larger volumes of Treasury Bonds and Notes.  U.S. residents purchased a net $0.6 billion of long-term foreign securities.

Industrial Production fell by 0.5% in April to an index value of 97.1 (2002=100), the lowest level since December of 1998 following a 1.7% decline in March, revised downward by 0.2%, and was expected to fall by 0.6% this month.  Having fallen for 6 consecutive months, the index is down 12.5% from April 200 and has fallen by 16% since the start of the current U.S. recession dated at December 2007. Production in the Mining Sector fell by 3.2% in March, production in Manufacturing fell by 0.3%, and production in Utilities increased by 0.4%. Capacity Utilization was reported at 69.1%, the lowest level since the series was instated in 1967, estimated by analysts at 68.8%, following a 69.4% level in March, revised from 69.3% originally reported. In April 2008, capacity utilization was as high as 79.2%.

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