• Core PPI stronger than expected at 0.3% m/m; now running 2.6% annualized over last 3mths
• Core intermediate goods -0.4% and core crude -1.4%

• Housing starts up 1.7% in July from downwardly revised level for June
• Building permits down 3.1% for July

• Non-residential construction will have a tough time contributing to Q3 growth due to the weak handoff from Q2

Biggest news is the PPI data; along with CPI data from last week, suggests some of the deflation fears may be overblown