Global| May 14 2015U.S. Producer Price Decline is Widespread
by:Tom Moeller
|in:Economy in Brief
Summary
The overall Final Demand Producer Price Index declined 0.4% during April (-1.3% y/y) following an unrevised 0.2% March increase. It was the fifth decline in the last six months. A 0.2% uptick was expected in the Action Economics [...]
The overall Final Demand Producer Price Index declined 0.4% during April (-1.3% y/y) following an unrevised 0.2% March increase. It was the fifth decline in the last six months. A 0.2% uptick was expected in the Action Economics Forecast Survey. Prices excluding food & energy fell 0.2% (+0.8% y/y) following a 0.2% rise. It was the third decline in four months and contrasted with expectations for a 0.1% rise.
Final demand goods prices (34% of the total index) fell 0.7% (-5.5% y/y), led lower by a 2.9% decline in energy prices (-24.0% y/y). Gasoline prices fell 4.7%, the first decline in three months, leaving them down 41.4% y/y. Home heating oil prices also declined by 3.0% (-39.7% y/y). Residential natural gas prices fell 2.7% (-16.4% y/y), increasing only twice during the last year, and electric power costs eased 0.3% (+1.7% y/y). Food prices dropped 0.9% (-4.2% y/y), down for the fifth straight month. Egg prices were off 25.3% (-20.7% y/y) and dairy product prices declined 0.8% (-16.2% y/y). Beef & veal prices fell 0.5% (+13.1% y/y).
Final demand prices for goods excluding food & energy edged 0.1% lower (+0.3% y/y) and they've been unchanged since July. Passenger car prices were off 0.8% (+1.4% y/y) while furniture prices were unchanged, up 2.0% y/y. Light motor truck prices slipped 0.1% (+2.7% y/y). Private capital equipment prices were unchanged (1.3% y/y).
Services prices (64% of the total index) eased 0.1% (+0.9% y/y), the third decline in four months. Final demand trade services prices fell 0.8% (+1.0% y/y). Prices for transportation of passengers were unchanged (-3.3% y/y). Prices for transportation and warehousing of goods slipped 0.1% (-1.4% y/y), falling for the last five months.
Inching up by 0.1% for the third straight month (1.7% y/y) were construction prices for final demand (2% of the total index).
Intermediate demand prices of processed goods declined 1.1% (-7.8% y/y), the ninth straight monthly decline. Services prices for intermediate demand increased 0.5% (1.8% y/y). Construction prices improved 0.1% (1.6% y/y).
The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.
| Producer Price Index (SA, %) | Apr | Mar | Feb | Apr Y/Y | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Final Demand | -0.4 | 0.2 | -0.5 | -1.3 | 1.6 | 1.3 | 1.9 |
| Excluding Food & Energy | -0.2 | 0.2 | -0.5 | 0.8 | 1.7 | 1.5 | 1.9 |
| Goods | -0.7 | 0.3 | -0.4 | -5.5 | 1.3 | 0.8 | 1.7 |
| Foods | -0.9 | -0.8 | -1.6 | -4.2 | 3.2 | 1.7 | 3.0 |
| Energy | -2.9 | 1.5 | 0.0 | -24.0 | -1.0 | -0.8 | 0.2 |
| Goods Excluding Food & Energy | -0.1 | 0.2 | -0.1 | 0.3 | 1.5 | 1.1 | 1.8 |
| Services | -0.1 | 0.1 | -0.5 | 0.9 | 1.8 | 1.6 | 1.9 |
| Construction | 0.1 | 0.1 | 0.1 | 1.7 | 3.0 | 1.8 | 2.9 |
| Intermediate Demand - Processed Goods | -1.1 | -0.1 | -0.6 | -7.8 | 0.6 | 0.0 | 0.5 |
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.
More Economy in Brief
