Thursday, April 12, 2012

It's The Economy Stupid: Trade, PPI, Jobless

Trade Balance went down more than expected, showing reduced demand for imports.  The trade deficit in the U.S. narrowed more than forecast in February as imports fell by the

most in three years, reflecting the smallest amount of crude oil purchases in 15 years and a drop-off in demand for Chinese goods.

 

Okay, there was a surprising jump in the Initial Jobless Claims.  Apparently a lot of Mall Easter Bunnies are now unemployed.  Now let’s see if the unemployment number goes up so we’ll know if they are out there looking for work.  What kind of work does unemployed Easter Bunnies look for?  As Memorial Day Bunnies, or what? 

 

PPI Month on Month for March was 0.0%.  That’s really close to no change.  Definitely below expectations and definitely less than the previous period.  PPI Year on Year (don’t you love geek speak) for March is actually down more than expected, and PPI Ex Food & Energy Year on Year for March came in higher than PPI YoY for March.  Perhaps they were producing a lot of Easter bonnets in anticipation of the holiday rush, driving up the price bonnet materials for the month.  Actually, the wholesale prices excluding food and fuel rose more than forecast in March, led by a pickup in the costs of light trucks and soaps.  Soaps?  Hey, I ‘m just reporting what they said.

 

The silver lining in the PPI report is that fuel costs advanced more slowly last month, supporting the Federal Reserve’s view that the recent surge in energy prices will be temporary.  Well, that’s everyone’s hopes and dreams.

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Trade Balance

FEB

-$51.8B

-$46.0B

-$52.6B

 

Producer Price Index MoM

MAR

0.3%

0.0%

0.4%

 

PPI Ex Food & Energy MoM

MAR

0.2%

0.3%

0.2%

 

Producer Price Index YoY

MAR

3.1%

2.8%

3.3%

 

PPI Ex Food & Energy YoY

MAR

2.8%

2.9%

3.0%

 

Initial Jobless Claims

APR 7

355K

380K

357K

367K

Continuing Claims

MAR 31

3335K

3251K

3338K

3349K

 

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

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