Global| May 13 2016U.S. Producer Prices Increase Broadly
by:Tom Moeller
|in:Economy in Brief
Summary
The headline Final Demand Producer Price Index increased 0.2% (0.0% y/y) in April after an unrevised 0.1% March dip. The rise compared to a 0.3% increase expected in the Action Economics Forecast Survey. A 0.3% decline (-2.0% y/y) in [...]
The headline Final Demand Producer Price Index increased 0.2% (0.0% y/y) in April after an unrevised 0.1% March dip. The rise compared to a 0.3% increase expected in the Action Economics Forecast Survey. A 0.3% decline (-2.0% y/y) in food prices offset a 0.2% increase (-12.0% y/y) in energy prices. Excluding food & energy, the PPI improved an expected 0.1% (0.9% y/y).
The decline in food prices reflected a 29.5% drop in egg prices (-36.8% y/y) as well as a 1.1% fall in dairy product prices (-1.9% y/y). These declines were offset by a 1.7% rise (-15.2% y/y) in beef & veal costs. Pasta product prices gained 0.1% (-5.2% y/y). On the energy price front, the jump in prices was driven by a 5.5% increase (-21.3% y/y) in gasoline prices as well as a 0.6% rise (0.0% y/y) in electric power costs. Home heating oil prices declined 30.5% (-42.9% y/y). Natural gas prices fell 0.9% (-6.3% y/y), but electric power costs improved 0.6% (0.0% y/y).
Core producer goods prices for final demand increased 0.3%, following four consecutive 0.1% gains. It reflected the emerging improvement in factory sector activity. Durable consumer goods prices gained 0.1% (0.5% y/y) and core nondurable goods costs increased 0.6% (4.0% y/y), the strongest rise in three months. Capital equipment prices edged 0.1% higher (0.5% y/y) following three months of remaining unchanged.
The 0.1% service price increase (1.0% y/y) followed a 0.2% decline. It reflected a 0.8% drop (+3.0% y/y) in capital equipment trade. Personal consumption trade prices improved 0.2% (0.6% y/y) while government goods trade prices remained unchanged (0.3% y/y). Passenger transportation prices decreased 1.7% (-4.3% y/y) following a 0.7% increase. Prices for transportation & warehousing of goods rose 0.2% (-1.6% y/y) following four consecutive months of decline. Service prices excluding each of these categories improved 0.3% (1.5% y/y) after a 0.1% dip.
Construction costs for final demand jumped 0.8% (1.9% y/y) after a 0.1% uptick.
Prices for intermediate processed goods increased 0.3% (-4.6% y/y), the strongest rise in six months.
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 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Final Demand | 0.2 | -0.1 | -0.2 | 0.0 | -0.9 | 1.6 | 1.4 |
| Excluding Food & Energy | 0.1 | -0.1 | 0.0 | 0.9 | 0.8 | 1.7 | 1.5 |
| Excluding Food, Energy & Trade Services | 0.3 | 0.0 | 0.1 | 0.9 | 0.6 | 1.2 | -- |
| Goods | 0.2 | 0.2 | -0.6 | -1.9 | -4.3 | 1.3 | 0.8 |
| Foods | -0.3 | -0.9 | -0.3 | -2.0 | -2.6 | 3.2 | 1.7 |
| Energy | 0.2 | 1.8 | -3.4 | -12.0 | -20.6 | -0.9 | -0.8 |
| Goods Excluding Food & Energy | 0.3 | 0.1 | 0.1 | 0.6 | 0.4 | 1.5 | 1.1 |
| Services | 0.1 | -0.2 | 0.0 | 1.0 | 0.9 | 1.8 | 1.6 |
| Construction | 0.8 | 0.1 | -0.1 | 1.9 | 1.9 | 2.9 | 1.8 |
| Intermediate Demand - Processed Goods | 0.3 | -0.2 | -0.7 | -4.6 | -6.9 | 0.6 | 0.0 |
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
