PPI
  • Prior month 0.1% MoM revised to 0.3%. Prior month year on year 2.6% revised to 2.7%
  • PPI final demand MoM 0.0 % versus 0.2% estimate
  • PPI Ex food and energy MoM 0.0% versus 0.2% estimate
  • PPI Final Demand YoY x.x% vs 2.5% estimate. Prior month 2.6% revised to 2.7%
  • PPI Final Demand ex food and energy 2.6% % vs 2.7% estimate. Prior month 3.0% revised to 3.2%

In other:

  • PPI ex food and energy/trade MoM 0.0% vs 0.1% last month
  • PPI ex food and energy/trade YoY 2.5% vs 2.7% last month revised to 2.8%

Details on the Goods and Services from the BLS shows:

Final Demand Goods – June

  • Prices rose 0.3%, largest increase since February (+0.3%)

  • Over half of the rise came from final demand goods less foods and energy (+0.3%)

  • Final demand energy prices rose 0.6%

  • Final demand food prices increased 0.2%

Product-level details:

  • Increases:

    • Communication & related equipment +0.8%

    • Gasoline, residential electric power, poultry, meats, and tree nuts also rose

  • Declines:

    • Chicken eggs −21.8%

    • Natural gas liquids and thermoplastic resins/plastics also declined

Final Demand Services – June

  • Prices edged down 0.1% (vs. +0.4% in May)

  • Main driver: Services less trade, transport, and warehousing down 0.1%

  • Transportation & warehousing services fell 0.9%

  • Trade margins were unchanged

Product-level details:

  • Largest drag: Traveler accommodation services −4.1%

  • Other declines: Auto/parts retailing, deposit services (partial), airline services, food & alcohol wholesaling

  • Increases:

    • Portfolio management +2.2%

    • Machinery/equipment wholesaling, furniture retailing, apparel/jewelry/footwear retailing also

According to some number crunchers, the early call on the components from the PPI that track into the core PCE keep the MoM in the 0.3% to 0.4% range (but on the lower end).

The US stocks are positive after the report:

  • S&P +14.74 points
  • Dow up 168 points
  • Nasdaq up 18 points
Source: Forex Live