The Producer Price Index (PPI) was 0.1% in May vs 0.2% expected, but …
The BLS reports Producer Prices for Final Demand roes 0.1 percent in May.
However, the PPI rose 0.4 percent from the previous unrevised report.
PPI Month-Over-Month Details
- The Producer Price Index for final demand advanced 0.1 percent in March, seasonally adjusted.
- The May increase in the index for final demand was led by prices for final demand services, which advanced 0.1 percent.
- The index for final demand goods rose 0.2 percent.
- Prices for final demand less foods, energy, and trade services edged up 0.1 percent in May after falling 0.1 percent in April.
PPI Month-Over-Month
Final Demand Goods Details
- Prices for final demand goods rose 0.2 percent in May after edging up 0.1 percent in April.
- Over 80 percent of the May advance can be traced to the index for final demand goods less foods and energy, which climbed 0.2 percent.
- Prices for final demand foods increased 0.1 percent, while the index for final demand energy was unchanged.
PPI Final Demand Services
Final Demand Services Details
- The index for final demand services inched up 0.1 percent in May following a 0.4-percent decrease in April. The advance is attributable to a 0.4-percent rise in margins for final demand trade services.
- Prices for final demand transportation and warehousing services declined 0.2 percent, while the index for final demand services less trade, transportation, and warehousing was unchanged.
- Leading the increase in prices for final demand services in May, margins for machinery and vehicle wholesaling jumped 2.9 percent. The indexes for traveler accommodation services; apparel, footwear, and accessories retailing; alcohol retailing; and system software publishing also moved higher.
- Conversely, prices for airline passenger services fell 1.1 percent. The indexes for furniture retailing; securities brokerage, dealing, investment advice, and related services; and portfolio management also decreased.
Producer Prices Year-Over-Year
PPI Year-Over-Year Details
- The Producer Price Index for final demand was up 2.6 percent.
- Final demand goods rose 1.3 percent
- Final demand services rose 3.2 percent
Year-over-year the bottom is in as of June 2023. But what’s the short-term trend?
Trump’s tariffs are wreaking havoc with any such estimates. On-off-on-off is no way to run a business or a country.
We stepped back from the brink when Trump capitulated with China, twice. Now we have a temporary truce for 6 months, unless Trump does something to disturb it.
For discussion, please see China Keeps Leverage on the US with a 6-Month Limit on Rare Earth Exports
It’s MAED!
This is a case of Mutually Assured Economic Destruction. Either side can economically destroy the other but also itself.
However, one side has elections to worry about while the other doesn’t.
Inflation will shoot higher as oil shoots higher, at least for the next few months.
PPI still too high, but at least it’s not apocalyptic.
Continuing claims continuing to nose higher is also a source of concern.
No risk of recession in 2025 unless the transaction’s velocity of money falls further.
Investors short attention span doesn’t permit them to review or consider past revisions as they only live for the moment.
Oil is up to $68 after bottoming out at $57 last month. Possible attack on Iran by Israel. High gasoline prices get people’s attention.
To keep gas cheap, Trump should bomb Israel.
Just jumped to 72. $4 gas coming to a station near you. But Trump keeps talking about gas below $2. I guess reality is now delusion.
I was going to say earlier that they were likely to attack Iran as a diversion to what they’re doing in Gaza, even though you’d think they’re tied up with Gaza.
“Trump’s tariffs are wreaking havoc with any such estimates. On-off-on-off is no way to run a business or a country.”
When is the court supposed to decide if Trump can continue clowning around?
While Trump has 1318 calendar days left in his administration, he only has 870 “working days” which is a trivial amount of time to do much of anything as big as he wanted to do. And now he’s postponed everything for 6 months.
Midterms around the corner now as well.
Good question. On the original appeal in May, I heard “fast track” and June.
The stay has now been extended to July 31 which I am now told is still fast.
I will cover this in a post. There are implications.
You assume there are gonna be fair elections. Trump knows the party’s over if he loses both houses. Read a bit ago hes trying to get texas to gerrymander the districts more while also out of sync the normal 10 years i think it was. If any republican loses he will call fraud sick the justice dep on them. And combined with the non financial judicial weakening lines in the bbb. The courts wont be able to do anything. When people go to the streets he will call in the military.
If i recall right. Nixon had two republican senators walk across the the street and told him its over. I dont see that happening now.
YMMV