US PPI for Final Demand in August Rose By 0.7%

The U.S. August final demand production price index (PPI) rose 0.7% month-on-month, which was the 9th consecutive month of upward growth. The increase was higher than market expectations by 0.6% and the previous value was 1%; it rose by 8.3% year-on-year, which was higher than the expected 8.2 %, the previous value was 7.8%.

After deducting food and energy, last month’s final demand PPI rose by 0.6% month-on-month, in line with expectations, with the previous value of 1%; the year-on-year increase was 6.7%, higher than the expected 6.6%, and the previous value of 6.2%.

During the period, after deducting the final demand PPI for food, energy and trade, the PPI rose 0.3% month-on-month, lower than the expected 0.6%, and the previous value was 0.9%.

Market analysis pointed out that continued supply chain disruptions have pushed up production costs, making PPI data higher than expected. The shortage of raw materials, rising costs of bulk commodities and shipping, and rising labor costs have all put pressure on production costs. Many US companies have recently increased prices and passed the pressure on production costs to consumers, which further intensified inflationary pressures.

Job vacancies in the United States increased in July, setting a new record high, reflecting that US companies are still facing difficulties in recruiting. The Job Vacancies and Labor Flow Survey (JOLTS) of the U.S. Department of Labor shows that as of the end of July, the number of job vacancies measuring labor demand increased by nearly 750,000 to 10.934 million, a record high, exceeding the expected 10.49 million; the previous value was revised upwards. To 10.185 million.

The United States announced that non-agricultural employment positions increased by 235,000 in August, the lowest increase in seven months, far below the expected 730,000, and the previous value was revised to 1.053 million. The US dollar fell sharply by 20 basis points in the short-term, once lost the 92 mark, and then rebounded to above 92.2.

During the period, there were 243,000 new jobs in the private market, far below the expected 610,000. The unemployment rate fell back to 5.2%, in line with expectations, with a monthly decline of 0.2 percentage points. Average hourly wages rose by 0.6% month-on-month in August, beating the expected 0.3%, and the labor force participation rate remained at 61.7%, slightly worse than the expected 61.8%.

In addition, the final value of the US August Markit Service Industry Purchasing Manager Index (PMI) was 55.1, and the initial and previous values ​​were both 55.2. The final value of the comprehensive PMI is 55.4, and the initial value is 55.4. The US August ISM non-manufacturing data was 61.7.

In addition, US durable goods orders in July fell 0.1% month-on-month, in line with expectations; July factory orders rose 0.4% month-on-month, expected to be 0.3%, and the previous value was 1.5%.

The United States announced the number of applicants for first-time jobless benefits. Last week, the number of first-time jobless benefits fell back to 340,000, a weekly decrease of 14,000, which was better than the expected 345,000, which was a record low after the outbreak. It was revised to 35.4 the previous week. Ten thousand people. As of the previous week, the number of continuous applicants was 2.748 million, which was less than the 2.808 million expected by the market.

The United States announced that the August ADP private employment, commonly known as small non-agricultural jobs, added 374,000, which was lower than the expected 625,000. The previous value in July was revised downward from 330,000 to 326,000.

The US August ISM Manufacturing Index reported 59.9, exceeding expectations. The final value of Markit Manufacturing PMI in August reported 61.1, slightly lower than the initial value. Construction spending rose 0.3% in July, better than expected.

 

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US PPI for Final Demand in August Rose By 0.7% - /10

Summary

The U.S. August final demand production price index (PPI) rose 0.7% month-on-month, which was the 9th consecutive month of upward growth

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