- New Zealand: International Trade (Feb)
- Korea: Consumer Survey Index (Mar); Philippines: Public Finance (Jan)
- Weekly: **Initial Claims Data Revisions Completed**
- Euro area: Flash Consumer Confidence Indicator (Mar)
- US: New Residential Sales (Feb)
- Belgium: Business Survey (Mar)
- Uruguay: GDP (Q4)
- more updates...
Economy in Brief
Kansas City Federal Reserve Factory Index Strengthens; Expectations Surge
The Kansas City Fed reported that its index of regional manufacturing sector business activity increased to 20 during March...
U.S. Initial Unemployment Insurance Claims Rise
Initial claims for unemployment insurance increased to 258,000 (-3.0% y/y) during the week ended March 18...
U.K. Retail Looks Less Bulletproof
For the most part, the assessments embodied in the March survey from the UK's CBI are being taken as being upbeat...
U.S. Existing Home Sales Fall to Five-Month Low; Inventory Remains Tight
Sales of existing single-family homes declined 3.7% (+5.4% y/y) to 5.480 million units (AR) during February...
U.S. FHFA House Price Index Momentum Diminishes
The FHFA U.S. house price index remained unchanged during January following a 0.4% December increase ...
Japan's Trade Trends Turn Sharply Higher
Japan has logged its largest current account surplus since April 2010...
by Tom Moeller July 14, 2016
The headline Final Demand Producer Price Index increased 0.5% (0.3% y/y) in June following an unrevised 0.4% May gain. It was the quickest rise since May of last year. A 0.3% rise had been expected in the Action Economics Forecast Survey. A 4.1% gain in energy prices (-11.4% y/y) was accompanied by a 0.9% increase (-2.3% y/y) in food prices. Excluding food & energy, the PPI strengthened 0.4% (1.3% y/y), the quickest rise since January. Expectations were for a 0.1% increase.
Energy price strength was driven by a 9.9% increase (-22.1% y/y) in gasoline prices, which added to robust gains during the prior three months. Home heating oil prices also were strong and increased 17.0% (-27.3% y/y) following an 18.5% rise. Natural gas prices eased 0.7% (-4.9% y/y), down for the third month in four, but electric power costs increased 0.5% (-0.3% y/y).
The increase in food prices reflected a 12.1% jump (5.6% y/y) in grain prices as well as a 7.6% rise in oilseed prices (17.0% y/y). Beef & veal costs strengthened 7.5% (-12.9% y/y), but fresh egg costs declined 25.9%, off by two-thirds y/y. Dairy product priced eased 0.1% (-4.6% y/y), down in each month this year.
Final demand prices for goods excluding food & energy remained unchanged (0.5% y/y) after two months of 0.3% increase. Durable consumer goods prices were flat (0.5% y/y) after a 0.3% increase, while core nondurable goods costs increased 0.3% (2.7% y/y) following no change. Capital equipment prices edged 0.1% higher (0.5% y/y) for the fifth straight month.
The 0.4% service price increase (1.5% y/y) was the firmest since January. It reflected a 0.8% rise (1.8% y/y) in personal consumption trade prices improved from 0.6% while capital equipment trade prices gained 0.3% (1.8% y/y). Government goods trade prices increased 0.4% (2.8% y/y). Passenger transportation prices rebounded 2.3% (-4.1% y/y). Prices for transportation & warehousing of goods remained unchanged(-1.9% y/y). Service prices excluding each of these categories rose 0.3% (1.5% y/y) following a 0.2% decline.
Construction costs for final demand gained 0.1% (2.0% y/y) for a second consecutive month.
Prices for intermediate processed goods jumped 0.9% (-4.1% y/y) after a 0.8% increase.
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.
Fed Communication and the Zero Lower Bound from the Federal Reserve Bank of San Francisco is available here.
|Producer Price Index (SA, %)||Jun||May||Apr||Jun Y/Y||2015||2014||2013|
|Excluding Food & Energy||0.4||0.3||0.1||1.3||0.8||1.7||1.5|
|Excluding Food, Energy & Trade Services||0.3||-0.1||0.3||0.9||0.6||1.2||--|
|Goods Excluding Food & Energy||0.0||0.3||0.3||0.5||0.4||1.5||1.1|
|Intermediate Demand - Processed Goods||0.9||0.8||0.3||-4.1||-6.9||0.6||0.0|