The U.S. Treasury budget deficit fell to $56.8 billion for November. Retail sales rose 0.7% in November. Business inventories increased 0.2% in October. The producer price index for final demand fell 0.2% in November. Initial jobless claims fell 3,000 to 294,000 for the week ended 12/6.

• The U.S. Treasury budget deficit fell to $56.8 billion for November. The deficit is $178.5 billion 2 months into the fiscal year, down 21 percent year-to-date, and excluding special factors like calendar timing, down 8 percent year-to-date. The improvement so far is roughly split between receipts and outlays, up 6 percent and down 4 percent, respectively.
• Retail sales rose 0.7% in November. Sales excluding autos are up 0.5%, and excluding autos and gas are up 0.6%.
• Business inventories increased 0.2% in October.
• The producer price index for final demand fell 0.2% in November. Year-on-year, PPI-FD is up 1.4%. Excluding food & energy, PPI-FD is unchanged (up 1.7% year-over-year. Excluding food, energy, and trade services, PPI-FD remains unchanged (up 1.6% year-over-year).
• Initial jobless claims fell 3,000 to 294,000 for the week ended December 6^th.
• NOTE: There will be no Weekly Economic Update for the week of December 22^nd-26^th and December 29^th, 2014 – January 2^nd, 2015.