2017 Economic Calendar
POWERED BY  econoday logo
U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |   

PPI-FD  
Released On 11/14/2017 8:30:00 AM For Oct, 2017
PriorConsensusConsensus RangeActual
PPI-FD - M/M change0.4 %0.1 %0.0 % to 0.3 %0.4 %
PPI-FD - Y/Y change2.6 %2.8 %
PPI-FD less food & energy - M/M change0.4 %0.2 %0.1 % to 0.3 %0.4 %
PPI-FD less food & energy - Y/Y change2.2 %2.4 %
PPI-FD less food, energy & trade services - M/M change0.2 %0.2 %0.2 % to 0.3 %0.2 %
PPI-FD less food, energy & trade services - Y/Y change2.1 %2.3 %

Highlights
A strong and welcome price gain for services fed an unexpectedly strong producer price report for October where the headline 0.4 percent exceeds Econoday's consensus for 0.1 percent and high estimate for 0.3 percent. The gain holds at 0.4 percent when excluding food and energy and falls to 0.2 percent when excluding trade services.

Trade services jumped 1.1 percent in October on top of September's 0.8 percent increase. Gains here hint at wide and emerging price traction in the wholesale economy in what perhaps is a harbinger for price gains at the consumer level. Legal services and health care showed special traction in the month. Food also showed traction, up 0.5 percent on gains for vegetables, while energy, reflecting a drop back for gasoline, was flat.

Year-on-year rates are improving with overall producer prices at 2.8 percent and at 2.4 and 2.3 percent respectively for ex-food and ex-energy and ex-food, ex-energy, ex-trade services. Today's results point to upside risk for tomorrow's CPI report where the consensus forecasts call for subdued readings.

Recent History Of This Indicator
A rebound for services lifted producer prices in September which came in at 0.4 percent overall and also when excluding food & energy. When also excluding trade services, prices rose only 0.2 percent. For October, forecasters see the PPI-FD at 0.1 percent, at 0.2 percent less food and energy, and at 0.2 percent less food, energy and trade services.

Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. Effective with the January 2014 PPI data release in February 2014, BLS transitioned from the Stage of Processing (SOP) to the Final Demand-Intermediate Demand (FD-ID) aggregation system. The headline PPI (for Final Demand) measures price changes for goods, services, and construction sold to final demand: personal consumption, capital investment, government purchases, and exports.  Why Investors Care
 
[Chart]
With the redefined and expanded PPI Final Demand series, energy still creates monthly volatility. However, services and construction have softened the headline and core numbers.
Data Source: Haver Analytics
 
[Chart]
A sluggish economy in 2013 and 2014 slowed inflation at the producer level.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/132/143/144/135/116/137/138/109/1310/1211/1412/12
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


powered by  [Econoday]