BLS Daily Report

[Richardson_D <Richardson_D@xxxxxxx>]

> BUREAU OF LABOR STATISTICS, DAILY REPORT; FRIDAY, SEPTEMBER 14, 2001:
>
> RELEASED TODAY:  The Producer Price Index for Finished Goods increased 0.4
> percent in August, seasonally adjusted, the Bureau of Labor Statistics
> reports.  This index posted a 0.9 percent decline in July and fell 0.4
> percent in June.  The index for finished goods other than foods and energy
> decreased 0.1 percent in August, after rising 0.2 percent a month ago.  At
> the earlier stags of processing, prices received by intermediate goods
> producers declined 0.4 percent, following a 1.0 percent drop in July.
> August's crude goods index fell 2.3 percent, compared with a 5.3 percent
> decrease in July.
>
> Wholesale prices jumped by 0.4 percent in August as the costs of gasoline
> and other energy products posted sharp increases, the government reported
> today.  The larger-than-expected advance in the Labor Department's
> producer price index, which measures price pressures before they reach
> store shelves, came after wholesale inflation had registered its best
> performance in 8 years, with prices plunging by 0.9 percent in July.  Many
> economists had predicted wholesale prices would rise by 0.2 percent in
> August.  However, the core rate of inflation -- which excludes volatile
> energy and food prices -- fell by 0.1 percent.  That was the first decline
> since February and a better showing than many analysts were expecting. In
> July, the core rate rose 0.2 percent (Jeannine Aversa, Associated Press,
> http://www.chicagotribune.com/business/sns-economy.story?coll=chi%2Dbusine
> ss%2Dhed).
>
> Prices of imported goods fell in August for the sixth time in 7 months,
> government figures showed today, in a sign that the threat of inflation
> remains subdued. The import price index, which measures the cost of goods
> and raw materials from abroad, fell 0.1 percent last month after declining
> a revised 1.5 percent in July, the Labor Department said.  Imported
> building materials became less expensive.  Analysts had expected a 0.2
> percent decrease in import prices after a previously reported 1.6 percent
> drop in July.  Imports account for about 15 percent of goods and services
> bought in the United States (Bloomberg News, The New York Times, page C2).
>
> Prices paid to U.S. producers surged in August, driven by a sharp rise in
> gasoline prices, the government said on Friday in a report that showed
> wholesale prices in most other areas of the economy were muted.  The
> Producer Price Index, a closely-watched gauge of inflation, rose 0.4
> percent in August after falling 0.9 percent and 0.4 percent in July and
> June, respectively, the Labor Department said.  But excluding volatile
> food and energy components -- the core rate watched by the U.S. Federal
> Reserve to gauge underlying price pressures -- prices fell 0.1 percent
> after a 0.2 percent gain in July.  The data collection for the report was
> not affected by the devastating air attacks earlier this week in New York
> and Washington (Reuters,
> http://www.washingtonpost.com/wp-dyn/articles/A30009-2001Sep14.html).
>
> Industrial production fell for the 11th consecutive month in August, a 0.8
> percent drop that dashed hopes the nation's beleaguered manufacturing
> sector was on the verge of a rebound.  Optimism that the country will be
> able to mount a sustained recovery in the second half of this year had
> already been dealt a severe blow by this week's terrorist bombings. which
> brought a temporary halt to airline travel and jolted Americans'
> confidence about the future.  In other government economic reports Friday,
> retail sales rose a moderate 0.3 percent despite the fact that auto sales
> dropped in August.  And wholesale prices climbed 0.4 percent as the cost
> of gasoline and other energy products posted sharp increases, (Jeannine
> Aversa, Associated Press
> http://www.nypost.com/apstories/business/V4392.htm).
>
> Sales at U.S. retailers climbed 0.3 percent in August, the strongest
> monthly gain since April, boosted by improved sales in a variety of
> sectors as the first wave of tax rebate checks landed in consumer
> mailboxes, the government said Friday.  The Commerce Department said
> retail sales excluding cars and trucks rose even further, posting a gain
> of 0.5 percent.  Retail sales in July were revised to a 0.2 percent gain.
> They were previously reported unchanged.  August retail sales showed the
> strongest gain since a 1.4 percent rise in April
> (http://www.washingtonpost.com/wp-dyn/articles/A30016-2001Sep14.html).
>
> Initial claims filed with state agencies for unemployment insurance
> benefits increased by 21,000 to a total of 431,000 for the week ending
> September 8, according to the Employment and Training Administration
> (Daily Labor Report, page D-4).
>
> Three consecutive declines in the Wage Trend Indicator have returned the
> measure to levels last seen in 1999, providing more evidence that private
> industry wage gains are likely to stay somewhat below 4 percent in the
> near future, according to the latest WTI figures released by the Bureau of
> National Affairs.  The revised reading of the WTI for the third quarter
> 2001 is 100.36, down from 100.50 in the second quarter and 100.71 in the
> first quarter (second quarter 1976=100). "The latest WTI reading means
> that wage increases paid by private employers will remain below 4 percent
> over the next few months," said economist Joel Popkin, who developed the
> measure for the Bureau of National Affairs (Daily Labor Report, page D-1).
>
> The U.S. economy may already have been entering an abrupt new downturn in
> the days leading up to Tuesday's terrorist attacks in New York and
> Washington, fresh numbers out Thursday show.  A closely watched gauge of
> consumer sentiment from the University of Michigan plunged unexpectedly in
> early September to its lowest reading since late 1993.  Meanwhile, the job
> market weakened, as first-time claims for unemployment benefits roared
> back up to nearly match their midsummer highs. The numbers "made it clear
> that prior to Tuesday, the economy wasn't in good shape," says Joel Naroff
> of Naroff Economic Advisers.  "Tuesday is obviously not going to help
> (George Hager, USA Today, page 2B).
>

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