Oct 9, 2019

U.S. wholesale prices hit 3-year low

Data: Investing.com; Chart: Axios Visuals

September's producer price index reading was significantly weaker than forecast. The index of wholesale goods and services came in well below expectations on both month-over-month and year-over-year metrics.

By the numbers: The overall headline reading fell to its lowest level in 3 years, while the core figure, which strips out volatile food and energy prices, reached its lowest level in 2 years.

  • The PPI for goods was -0.4% on the month and the services reading was -0.2%.
  • Energy prices fell -2.5% for the second month in a row.

The big picture: The weak reading on wholesale prices is the latest sign that inflation is not picking up and could provide more ammo for the Fed to cut U.S. interest rates this month.

Watch this space: "This series doesn't include tariffs, so the takeaway is a bit misleading," BMO Capital Markets VP of U.S. rates strategy Jon Hill said in a note to clients.

  • "Any evidence of feed through into CPI will be of core focus on Thursday."

Go deeper

Analysts expect key U.S. manufacturing index to improve this month

Data: Institute for Supply Management; Chart: Axios Visuals

The U.S. jobs report will be the most watched piece of data this week, but Friday will also bring the October reading of the Institute for Supply Management's manufacturing data. The index fell to the lowest level since June 2009 in September.

Why it matters: The U.S. manufacturing industry has seen a consistent decline all year, falling into recession earlier in the year and showing outright contraction for the second month in a row last month.

Go deeperArrowOct 28, 2019

China's manufacturing is pushing higher while the U.S.'s is sinking

Data: Caixin, Institute for Supply Management; Chart: Andrew Witherspoon/Axios

Manufacturing industries in the U.S. and China seem to be moving in opposite directions. In October, a private company survey of China's factory activity shows it expanded for a third consecutive month, while U.S. manufacturing contracted for the third month in a row.

Why it matters: October was the largest deficit the U.S. manufacturing industry has had with China in the nearly eight-year history of the Caixin survey.

Go deeperArrowNov 4, 2019

The Chicago PMI report was a mitigated disaster

Data: Investing.com; Chart: Andrew Witherspoon/Axios

Ahead of Friday's ISM manufacturing report, the Chicago Business Barometer, a separate reading that tracks manufacturing companies based in the Midwest, produced its weakest reading in four years and the second lowest in a decade.

Threat level: The details of the report, also known as the Chicago PMI, were even worse.

Go deeperArrowNov 1, 2019