The producer price index came in -0.2% month to month and 0.0% from a year ago. It’s the first read that wasn’t a decline from a year earlier, but that’s about the happiest face or spin anyone could put on the report.
The data is simply awful when looking closer. I’m not sure how much this influences the Federal Reserve, currently meeting with the FOMC, a gathering that once promised to see a rate hike. There won’t be any increase Wednesday, but the fed will take pains to telegraph its next rate hike. Coupled with disappointing retail sales seen Tuesday morning, and it’s not great news for the economy.
Final Demand Goods |
|||
Total |
Foods |
Energy |
Less Food & Energy |
-0.6 |
-0.3 |
-3.4 |
0.1 |
Final Demand Services |
|||
Total |
Trade |
Transportation & Warehousing |
Other |
0.0 |
-0.4 |
-0.7 |
0.3 |
I’m watching crude closely, which has come down a lot this week, but was due for a correction. Overall, it’s just a calm and orderly market that needs a clear cut catalyst to extend the rebound.
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