By Karl Denninger, The Market Ticker

The survey says….

Business Activity Index at 63.5%New Orders Index at 63%Employment Index at 50.5%

That's all good, right?

Well, it would be except…..

• Didn't we just get an ADP report showing huge services hiring? I think we did. So why isn't it reflected in here? I'm not sure, but I don't like inconsistencies. And this is a big one.
• Notice prices paid? Oh, that's not in the headline. Yeah, I wonder why. It is, however, in the data table, and it's ugly.

Paging Ben Bernanke on Line #1 - price increase calling.

Speaking of which….. commodities up in price:

Airfares; Batteries; Beef; Copper Products; Cotton (2); Cotton Products (4); #1 Diesel Fuel (3); #2 Diesel Fuel (6); Fuel (12); Gasoline (3); Heating Fuel; Liner Bags; Paper (2); Polyester and Polyester Products; Polyethylene Bags; Service Labor; Soy Oil; Steel; Steel Products; Sugar; Transportation Costs; and Waste Management Services.

That's pretty much all of them. What's not? Computers and pork products (who thinks they're selling down their hogs as feed goes into the stratosphere? Yep.)

But remember folks, inflation expectations are well-anchored.

That's a lie.

In other news food prices hit all-time record highs worldwide last month. That'll go over well with those who aren't living in an ivory tower - or in Washington DC - while ADP report the best service-sector hiring in 10 years while the ISM says…… employment in the services sector is barely positive.

I think I'll wait for the Household Data on Friday to see what sort of absorption of those higher prices is possible. If, as I expect, the answer is "none", things get rather interesting on a forward basis for corporate profits (or rather the lack thereof.)

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