US PPI: Weakness in the manufacturing sector may weigh on producer prices – Wells Fargo
|On Tuesday, in the US, the Producer Price Index is due. Analysts at Wells Fargo, suspect that the weakness in the manufacturing sector may cause producer prices to come in slightly below expectations.
Key Quotes:
“The Producer Price Index has not been as closely followed as it has been in the past largely because the revised survey has not been as good a predictor of future trends in the CPI. That said, the headline and core data look very similar to the CPI, with headline finished goods prices up 1.7% year-over-year and prices excluding food and energy items up 2.4%.”
“Producer prices are more sensitive to swings in the business cycle, however, particularly in manufacturing and construction. The trade war has influenced the data, as prices for materials and inputs that compete with imports have been pulled higher.”
“We suspect that the weakness in the manufacturing sector may cause producer prices to come in slightly below expectations. We expect both the overall and core PPI to rise just 0.1%, which is slightly below the consensus for the core PPI.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.