Recent Updates
- US: Consumer Sentiment (May-final), Personal Income, Adv Trade & Inventories (Apr)
- China: Public Funds Asset Mgmt, SOE Economy Operation (Apr), Star Rated Hotels (Q1)
- Croatia: Retail Trade (Apr)
- more updates...
Economy in Brief
U.S. Advance Trade Deficit Narrowed Markedly in April
The advance estimate of the U.S. international trade deficit in goods narrowed to $105.9 billion in April...
As Inflation Overshoots, Are Central Banks Overdoing It?
This report is a reminder of how complicated inflation and monetary policy making can be...
U.S. GDP Decline is Little-Revised in Q1'22; Corporate Profits Fall
U.S. real GDP fell 1.5%, SAAR (+3.5% y/y) last quarter...
Kansas City Fed Manufacturing Index Dips in May But Remains Strong
The Kansas City Fed reported that its manufacturing sector business activity index declined to 23 in May...
U.S. Pending Home Sales Decline Sharply in April
Home buying remains under pressure...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller May 14, 2015
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 |
