Wells Fargo Weekly Economic & Financial Commentary, March 21, 2014

A Few Hints That Weather Effects Are Fading

· Industrial production bounced back a sizable 0.6 percent in February after posting a 0.2 percent decline in January.

· Consumer prices rose a slight 0.1 percent in February, as energy prices pulled back on the month. The CPI is now up just 1.1 percent over last year’s level.

· Housing market data began to hint at some fading effects of the severe winter weather. While housing starts fell again in February, building permit activity posted a 7.7 percent increase for the month. Existing home sales declined slightly in February; however, the pullback was far from the 5.1 percent decline in sales observed in January.

Weekly Economic & Financial Commentary, March 21