Global| Jun 14 2011U.S. PPI Rise Is Moderate
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. producer price index for finished goods increased just 0.2% last month, the weakest rise since July. The gain roughly matched Consensus expectations for a 0.1% uptick. Offsetting each other were a 1.5% rise in energy prices [...]
The U.S. producer price index for finished goods increased just
0.2% last month, the weakest rise since July. The gain roughly matched
Consensus expectations for a 0.1% uptick. Offsetting each other were a
1.5% rise in energy prices and a 1.4% decline in food. Elsewhere, price
gains were moderate. The core PPI rose an expected 0.2%.
Finished consumer goods prices rose just 0.2% (9.0% y/y) with the offsetting food & energy price changes. Core prices rose 0.2% (2.7% y/y). Furniture prices rose 2.1% y/y, the strongest gain since 2009 and appliance prices rose 0.6% y/y). Men's apparel prices increased 2.4% y/y and women's clothing prices rose 1.5%. Capital equipment prices increased 0.2% last month and by an accelerated 1.3% y/y, the most since August 2009.
Intermediate goods prices jumped another 1.3% as energy prices increased 1.4% (22.3% y/y). That strength was, however, offset by a 0.4% decline in food prices (13.1% y/y). Core-intermediate prices remained firm and rose another 0.9% (6.3% y/y). Crude materials prices fell 4.1% and reversed 4.0% April jump. A moderation in factory sector growth caused a 0.9% decline in prices less food & energy. Strength in metals prices was offset by softgoods. Crude energy prices fell 5.2% (+22.5% y/y) while food prices fell 4.4% (+24.1% y/y).
The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectation figure is available in the AS1REPNA database.
| Producer Price Index (%) | May | Apr | Mar | May Y/Y | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Finished Goods | 0.2 | 0.8 | 0.7 | 7.0 | 4.2 | -2.5 | 6.4 |
| Energy | 1.5 | 2.5 | 2.6 | 23.6 | 13.8 | -17.7 | 14.1 |
| Food | -1.4 | 0.3 | -0.2 | 4.0 | 3.9 | -1.4 | 6.8 |
| Less Food & Energy | 0.2 | 0.3 | 0.3 | 2.1 | 1.2 | 2.5 | 3.4 |
| Intermediate Goods | 0.9 | 1.3 | 1.5 | 10.2 | 6.4 | -8.4 | 10.3 |
| Less Food & Energy | 0.9 | 1.1 | 0.9 | 6.3 | 4.3 | -4.2 | 7.4 |
| Crude Materials | -4.1 | 4.0 | -0.5 | 22.5 | 21.4 | -30.3 | 21.5 |
| Less Food & Energy | -0.9 | 2.6 | -2.3 | 19.0 | 32.6 | -23.4 | 14.7 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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