U.S. Economic News

August 9, 2019

U.S. Economic Indicators

The headline Producer Price Index (“PPI”) for final demand rose 0.2% in July and was up 1.7% from July of last year. The core — which removes volatile prices of food, energy, and trade services — fell 0.1% in July and was up 1.7% from a year ago. BLS Report

U.S. News

According to the Wall Street Journal, the International Energy Agency recently downgraded its forecast for global oil demand growth for the third time in four months, citing worsening relations between the U.S. and China that could lead to further reductions in trade activity. Global demand for oil between January and May 2019 was at its weakest since 2008, while oil production by non-OPEC countries — including the U.S. — continues to surge. WSJ

The Financial Times reports that the rise of internet shopping and deep discount chains will make it difficult for U.S. retailers affected by the U.S.-China trade war to pass price increases to consumers. Retailers are instead trying to mitigate price increases and protect profit margins by renegotiating contracts with suppliers. FT