The consumer price index rose an expected 0.3% in September, bringing the Y/Y rate up to 1.5%, the highest since October 2014. Energy prices jumped 2.9% M/M and food prices were flat. Excluding energy and food, the price increase drops to just 0.1%, which drops the core CPI Y/Y rate by one-tenth to 2.2%.

The housing starts report provided a mixed picture. Overall, housing starts took at 9.0% dive in September, but that was almost entirely due to a 38% drop in the volatile multi-family segment. At the same time, single-family starts surged 8.1%. Permits for both segments were up 6.3%, with single-family permits rising 0.4% for the month and multi-family permits up 17.0%.

The Philadelphia Fed Business Outlook Survey, which tracks Philadelphia area manufacturing and serves as an index of manufacturing sector trends, showed solid gains, with orders and shipments up 9.7% for the month, on top of two months of gains. Monthly growth in new orders was 16.3%, the strongest since November 2014, and shipments, at 15.3% growth, had the second strongest month in that same period. The report had some weak spots, such as continuing contraction in the workweek.