NEW$ & VIEW$ (12 JULY 2013)

Wholesale Prices in U.S. Increase More Than Forecast

The 0.8 percent gain in the producer price index was the biggest since September and followed a 0.5 percent rise the prior month, a Labor Department report showed today in Washington. The median estimate in a Bloomberg survey of 73 economists called for a 0.5 percent gain. The so-called core measure, which excludes volatile food and fuel, increased 0.2 percent, also more than forecast.

Compared with the same month a year earlier, companies paid 2.5 percent more for goods, the biggest 12-month increase since March 2012. The core index increased 1.7 percent in the 12 months ended in June, matching the year-over-year gains in the prior three months.

(Doug Short)

Core PPI remains resilient, up 0.9% during the first half, +1.8% annualized. Q2 was +1.6% annualized.

UPS Slashes Guidance Amid “Slowing U.S. Industrial Economy

Citing “customer preference for lower-yielding shipping solutions” – i.e. everyone is slashing costs still, the real kicker is what is driving their revenue and operating income below expectations – “a slowing US industrial economy.”

Euro zone output falls as recovery remains fragile


Industrial production in the 17 countries using the single currency fell 0.3 per cent on the month, following a revised 0.5 per cent increase in April, data from the EU’s statistics office Eurostat showed.

Production in Europe’s two biggest economies, Germany and France, dropped in May, with Italy and Spain showing small increases. Over all, factory output was dented by a 2.3-per-cent drop in the production in durable goods, such as cars and TVs.

Germany, France, and Italy account for two-thirds of the euro zone’s industrial output.

China Credit Weathers Crunch

China’s recent cash crunch—which sent interbank lending rates soaring and roiled stock and bond markets—cut into financing in June but it didn’t result in a cratering of credit during the month

China’s broadest measure of money supply, M2, was up 14% at the end of June compared with a year earlier, below the 15.8% rise at the end of May and below expectations of 15.2%.

Chinese banks extended a total of 860.5 billion yuan ($140 billion) of new yuan loans in June, up from 667.4 billion yuan in May, data from the central bank showed Friday. It was also above market forecasts of 800 billion yuan.

Meanwhile, a broader measure of credit in the banking system known as total social financing came in at 1.04 trillion yuan in June, down moderately from 1.19 trillion yuan in May. While the tally was the lowest monthly total this year, it was still relatively ample.

India Factory-Output Unexpectedly Dips as Inflation Quickens

Production at factories, utilities and mines declined 1.6 percent from a year earlier after a revised 1.9 percent climb in April, the Central Statistical Office said in New Delhi today. The median of 31 estimates in a Bloomberg News survey was for a 1.4 percent gain. Another report showed consumer-price inflation accelerated to 9.87 percent in June.


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