Recent Updates

  • France: **France Wages and Earnings Rebased to Q2-2017=100**
  • Flash PMIs: Japan, France, Germany, Euro Area, US (Sep)
  • Canada: CPI (Aug), Retail Trade (Jul)
  • Canada Regional: CPI by Province (Aug), Retail Trade by Province (Jul)
  • Norway: International Reserves (Aug), Government Debt (Q2); Finland: Quarterly Sector Accounts, Government Balance (Q2); Denmark: Property Price Indexes (Q2); Iceland: Wage Index (Aug)
  • Turkey: IIP & Intl Reserves (Jul); South Africa: Retail Survey (Q4); Mauritius: PPI (Jun); Lebanon: CPI (Aug)
  • more updates...

Economy in Brief

U.S. Producer Prices Rebound; Services Prices Jump
by Tom Moeller  November 18, 2014

The overall Final Demand Producer Price Index gained 0.2% during October (1.5% y/y) following an unrevised 0.1% dip in September. A 0.1% decline was expected in the Action Economics Forecast Survey. Prices excluding food & energy surged 0.4% (1.6% y/y) following no change. A 0.1% uptick was expected.

Services prices (64% of the total index) rebounded 0.5% (1.8% y/y) after a 0.1% dip. Final demand trade services prices jumped 1.5% (2.6% y/y) but prices for transportation of passengers declined 0.7% (+2.8% y/y). Prices for transportation and warehousing of goods for final demand gained 0.1% (2.4% y/y).

Also firm were construction prices for final demand (2% of the total index). They improved 0.5% (2.2% y/y) following two months where they were unchanged.

Goods prices (34% of the total index) declined 0.4% (+1.1% y/y), led lower by a 3.0% decline (-3.7% y/y) in energy prices. Gasoline prices were off 5.8% (-9.6% y/y) while home heating oil prices declined 7.1% (-14.5% y/y). Natural gas prices fell 0.8% (+4.7% y/y) but electric power costs improved 0.5% (3.7% y/y). Finished food prices rebounded 1.0% (4.5% y/y) after two monthly declines. Beef & veal prices rebounded 6.0% (27.4% y/y) but dairy product prices slipped 0.2% (+13.7% y/y).

Final demand prices for goods excluding food & energy slipped 0.1% (+1.7% y/y). Passenger car prices jumped 1.0% (1.1% y/y) following three straight months of decline while furniture prices ticked 0.1% higher (1.1% y/y). Private capital equipment prices improved 0.1% (1.3% y/y).

Intermediate demand prices of processed goods declined 0.9% (0.4% y/y) after a 0.1% uptick.

Measured using the old formula, which is being phased out as the headline series, producer prices declined 0.3% (+1.7% y/y), the third consecutive monthly drop. Food costs recovered 1.4% (6.0% y/y) but energy prices declined 2.7% (-2.8% y/y). Prices excluding food & energy improved 0.1% (2.1% y/y).

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figure is available in the AS1REPNA database.

Producer Price Index (%) Oct Sep Aug Oct Y/Y 2013 2012 2011
Final Demand 0.2 -0.1 0.0 1.5 1.3 1.9 3.9
  Excluding Food & Energy 0.4 0.0 0.1 1.8 1.5 1.9 --
     Goods -0.4 -0.2 -0.3 1.1 0.8 1.7 6.8
       Foods 1.0 -0.7 -0.5 4.5 1.7 3.0 8.5
       Energy -3.0 -0.7 -1.5 -3.7 -0.8 0.2 17.5
     Goods Excluding Food & Energy -0.1 0.2 0.0 1.7 1.1 1.8 3.4
   Services 0.5 -0.1 0.3 1.8 1.6 1.9 2.1
   Construction 0.5 0.0 0.0 2.2 1.8 2.9 2.2
Intermediate Demand - Processed Goods -0.9 0.1 -0.3 0.4 0.0 0.5 8.9
close
large image