Following yesterday's cooling (in-line) consumer price inflation data (driven in large part by energy deflation), US producer prices were expected to rebound modestly in July from a 0.3% MoM decline (headline) in June.
Instead, headline Producer Prices were unchanged MoM (cooler than expected), pushing the annual change down from +5.5% to +4.7% YoY...
Source: Bloomberg
Core PPI (Ex Food and Energy) also printed cooler than expected (+0.2% MoM vs +0.3% MoM), dragging Core PPI YoY down to +4.2%...
Final demand services: Prices for final demand services advanced 0.2 percent in July after rising 0.5 percent in June. The July increase can be traced to the index for final demand services less trade, transportation, and warehousing, which moved up 0.6 percent. Conversely, the indexes for final demand transportation and warehousing services and for final demand trade services decreased 1.8
percent and 0.1 percent, respectively.
- Product detail: Leading the July increase in prices for final demand services, the index for portfolio management advanced 6.5 percent. Margins for health, beauty, and optical goods retailing; automobiles and automobile parts retailing; lawn, garden, and farm equipment and supplies retailing; food and alcohol retailing; and food and alcohol wholesaling also moved higher. In contrast, prices for truck transportation of freight fell 1.8 percent. The indexes for machinery and vehicle wholesaling and for securities brokerage, dealing, a
