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The seasonally adjusted Producer Price Index for finished goods rose 1.8 percent during June, according to the Department of Labor’s Bureau of Labor Statistics. The increase was a healthy rise from slighter increases of 0.2 percent in May and 0.3 percent in April, and was felt across all finished goods categories in the index: Energy goods jumped 6.6 percent after advancing 2.9 percent in the prior month; consumer foods advanced 1.1 percent following a 1.6-percent drop in May; and goods other than foods and energy rose 0.5 percent in June after dipping 0.1 percent over May.
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Similarly, the Bureau’s Consumer Price Index for All Urban Consumers (CPI-U) increased 0.7 percent in June after rising 0.1 percent in May after seasonal adjustment. The Bureau said the gain was mostly thanks to a 17.3 percent rise in the gasoline index in June, which accounted for more than 80 percent of the increases in its all items index.
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The index for energy increased by a milder 7.4 percent in June, thanks to a decline in the electricity index, which tempered the sharp increase in gasoline. The food index, which had fallen each of the last four months, was unchanged in June. The index for items other than food and energy rose 0.2 percent in June following a 0.1 percent increase in May.
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Over the last 12 months the index has fallen 1.4 percent, thanks to a 25.5 percent decline in the energy index which offset increases of 2.1 percent in the food prices and 1.7 percent in prices for items other than food and energy.
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Advance estimates of U.S. retail and food services sales for June were $342.1 billion, a 0.6 percent increase over May, but down 9 percent compared to June 2008, according to the U.S. Census Bureau. Retail trade sales were up 0.8 percent from May, but 10 percent below last year. Gasoline station sales were down 31.6 percent from June 2008 and motor vehicle and parts dealer sales were down 14.1 percent from last year.
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Building permits for privately owned housing units in May reached a seasonally adjusted annual rate of 518,000, 4 percent above the revised April rate of 498,000, but 47 percent below May 2008’s estimate of 978,000. Single-family authorizations in May ramped up to a rate of 408,000, a 7.9 percent increase over April’s revised figure of 378,000.
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Housing starts for privately owned units in May hit a seasonally adjusted annual rate of 532,000, a whopping 17.2 percent over April’s revised estimate of 454,000, but 45.2 percent under the May 2008 rate of 971,000. Single-family housing starts in May were at a rate of 401,000, a healthy 7.5 percent over the revised April figure of 373,000.
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This week, watch for news on the leading economic indicators report (July 20) from the Conference Board; existing home sales (July 23) from the National Association of REALTORS®; and initial jobless claims (July 23) from the Department of Labor’s Employment and Training Administration.
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