Global| Jul 16 2014U.S. Producer Prices Rebound
by:Tom Moeller
|in:Economy in Brief
Summary
The overall final demand Producer Price Index recovered 0.4% (1.9% y/y) during June following an unrevised 0.2% May decline. Consensus expectations were for a 0.2% gain in the Action Economics Forecast Survey. Prices excluding food & [...]
The overall final demand Producer Price Index recovered 0.4% (1.9% y/y) during June following an unrevised 0.2% May decline. Consensus expectations were for a 0.2% gain in the Action Economics Forecast Survey. Prices excluding food & energy also recovered an expected 0.2% last month (1.8% y/y) following a 0.1% slip.
Final demand prices for goods (35% of the total index) jumped 0.5% (2.1% y/y) after a 0.2% fall. Higher finished energy prices led the gain with a 2.1% rise (2.9% y/y) after a 0.2% fall. Finished foods prices fell 0.2% (+3.5% y/y) for the second consecutive month. Private capital equipment prices increased 0.1% (1.3% y/y) for a second consecutive month.
Services prices (63% of the total index) rebounded 0.3% (1.9% y/y) after a 0.2% decline. Prices for transportation of passengers gained 0.8% (4.1% y/y) for the second consecutive month. Prices for transportation and warehousing of goods for final demand gained 0.3% (2.5% y/y) after a 0.9% jump.
Construction prices for final demand ticked 0.1% higher (3.3% y/y) for a second month.
Intermediate demand prices of processed goods recovered 0.4% (1.5% y/y) after a 0.1% slip.
Measured using the old formula, which is being phased out as the headline series, producer prices jumped 0.7% (2.7% y/y) after being unchanged in May. Food costs gained 0.3% (4.9% y/y) while energy prices recovered 2.3% (3.1% y/y). Prices excluding food & energy nudged 0.1% higher (1.9% 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 (%) | Jun | May | Apr | Jun Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Final Demand | 0.4 | -0.2 | 0.6 | 1.9 | 1.3 | 1.9 | 3.9 |
| Excluding Food & Energy | 0.2 | -0.1 | 0.5 | 1.8 | 1.5 | 1.9 | -- |
| Goods | 0.5 | -0.2 | 0.6 | 2.1 | 0.8 | 1.7 | 6.8 |
| Foods | -0.2 | -0.2 | 2.7 | 3.5 | 1.7 | 3.0 | 8.5 |
| Energy | 2.1 | -0.2 | 0.1 | 2.9 | -0.8 | 0.2 | 17.5 |
| Goods Excluding Food & Energy | 0.1 | 0.0 | 0.3 | 1.5 | 1.1 | 1.8 | 3.4 |
| Services | 0.3 | -0.2 | 0.6 | 1.9 | 1.6 | 1.9 | 2.1 |
| Construction | 0.1 | 0.1 | 0.4 | 3.3 | 1.8 | 2.9 | 2.2 |
| Intermediate Demand - Processed Goods | 0.4 | -0.1 | 0.0 | 1.5 | 0.0 | 0.5 | 8.9 |
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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