Thursday, September 13, 2012

It's The Economy Stupid: PPI & Jobs

Wholesale prices in the U.S. increased in August by the most in more than three years, reflecting a surge in energy costs. The producer price index climbed 1.7 percent after an increase of 0.3 percent in July.  The gain in producer prices was the biggest since June 2009.  Companies may find it difficult to pass on higher energy costs as the global economic slowdown and so-called fiscal cliff of higher taxes and government spending cuts prompt their customers to limit spending.

 

The number of Americans filing applications for unemployment benefits rose more than projected last week, showing scant improvement on the outlook for jobs.       Jobless claims increased 15,000 in the week ended Sept. 8, the biggest gain in almost two months, to 382,000.  It is estimated that Tropical Storm Isaac resulted in about 9,000 applications for benefits. 

 

The job market appears to be cooling as a global slowdown and looming U.S. tax policy changes keep businesses hesitant about hiring. Persistent unemployment, is a “grave concern” according to Federal Reserve Chairman Ben S. Bernanke.  The Fed policy makers meet today to consider whether new steps are needed to boost the world’s biggest economy.

 

 

Economic Event

Period

Economic Survey

Actual Reported

Original Prior

Revised Prior

Producer Price Index MoM

AUG

1.2%

1.7%

0.3%

 

PPI Ex Food & Energy MoM

AUG

0.2%

0.2%

0.4%

 

Producer Price Index YoY

AUG

1.6%

2.0%

0.5%

 

PPI Ex Food & Energy YoY

AUG

2.6%

2.5%

2.5%

 

Initial Jobless Claims

SEP 8

370K

382K

365K

367K

Continuing Claims

SEP 1

3318K

3283K

3322K

3332K

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

 

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