- Sweden: Consumer Confidence, Business Tendency Survey, Public Finance (Mar)
- Spain: Mortgage Market (Jan), Order Book Forecast (Mar)
- Italy: ISTAT Business & Consumer Survey Press Release (Mar)
- Germany: Business Registrations & Deregistrations (Dec), Import & Export Prices (Feb), IAB Labor Market Barometer (Mar)
- Vietnam: GDP (Q1), CPI, IP, International Trade, Passenger & Cargo Traffic Statistics, Manufacturing Sales and Inventories, International Visitor Arrivals (Mar); Korea: Economic Sentiment
- more updates...
Economy in Brief
U.S. Energy Product Prices Remain Under Pressure
Regular gasoline prices held steady at $2.32 per gallon last week (12.1% y/y) for the third straight week...
German Federal Debt Levels Fall
German debt level fell outright in Q4 2016 as the ratio of federal debt-to-GDP also fell...
NABE 2018 Forecast: Modest Improvement in Economic Growth & Higher Inflation
The NABE expects 2.5% real U.S. economic growth in 2018 compared to 2.3% forecast for 2017...
Texas Factory Sector Activity Remains Strong
The Dallas Fed indicated in its Texas Manufacturing Outlook Survey that the General Business Activity Index eased during March...
EMU Money and Credit Growth Are Less Than Impressive Than Euro-PMIs
EMU nominal money supply growth is slightly higher over three months, but credit growth in the EMU is slower...
Durable Goods Orders Strengthened by Another Jump in Aircraft
New orders for durable goods rose 1.7% (5.0% y/y) during February...
by Sandy Batten January 15, 2016
The headline Final Demand Producer Price Index fell 0.2% m/m (-1.0% y/y) in December after having jumped 0.3% m/m in November. This was the fourth monthly decline in the past five months. The Action Economics Forecast Survey had looked for a 0.2% m/m decrease. For all of 2015, final demand producer prices fell 1.0% after rising 0.9% in all of 2014. Final demand producer prices excluding the volatile food and energy components edged up 0.1% m/m (0.3% y/y) in December, also in line with the forecast survey, on top of a 0.3% m/m increase in November.
The monthly decline in December was due to a 0.7% m/m drop in final demand goods prices. This was the sixth consecutive monthly decline in final demand goods prices. Compared to a year earlier, final demand goods prices were down 3.7%. Prices of final demand services inched up 0.1% m/m. This was the second consecutive monthly increase in final demand services prices, which were up 0.4% from a year ago.
More than three quarters of the December fall in final demand goods prices can be traced to energy, which fell 3.4% m/m (-16.2% y/y), with gasoline prices falling 8.3% (-29.1% y/y). Prices of final demand foods decreased 1.3% m/m (-5.2% y/y). Conversely, prices of pharmaceutical preparations jumped up 1.1% m/m (8.2% y/y).
The December rise in final goods services prices was due largely to a 0.4% m/m increase (1.0% y/y) in services prices less trade, transportation, and warehousing. The index of final demand trade services continued to exhibit its marked monthly volatility, falling 0.4% m/m in December, following a 1.2% m/m rise in November and a 0.7% m/m drop in October. This category represents estimates of margins charged by retail and wholesale dealers; its monthly volatility has been difficult to interpret and been a key source of volatility in the overall final demand index.
The final demand services PPI for medical care rose 0.4% m/m in December, reflecting a 1.3% m/m jump in prices of physician services and a 0.2% m/m increase in prices of hospital services. These prices are key components in constructing the PCE price deflator (headline and core) and so will likely give that price measure a meaningful boost in December.
Final demand construction prices were unchanged in December from November to be up 1.8% from a year earlier.
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, %)||Dec||Nov||Oct||Dec Y/Y||2015||2014||2013|
|Excluding Food & Energy||0.1||0.3||-0.3||0.3||0.8||1.7||1.5|
|Goods Excluding Food & Energy||0.1||-0.1||-0.3||0.0||0.4||1.4||1.1|
|Intermediate Demand - Processed Goods||-1.0||-0.6||-0.4||-6.4||-6.9||0.5||0.0|