U.S. Economic News
July 12, 2019
U.S. Economic Indicators
The headline Producer Price Index (“PPI”) for final demand rose 0.1% in June and is up 1.7% from June of last year. The core — which removes volatile prices of food, energy, and trade services — was unchanged in June and is up 2.1% from a year ago. BLS Report
U.S. News
The Wall Street Journal reports that overall Chinese foreign trade declined notably in June, despite Beijing’s efforts to revive domestic demand through tax cuts for businesses and easy credit policies. However, Chinese exports to other Southeast Asia countries surged, reflecting an increase in transshipping to circumvent U.S. tariffs. WSJ
According to the Financial Times, the upcoming corporate earnings reporting period is widely expected to confirm that America’s largest public companies have entered a profit recession — defined as two consecutive quarters of year-on-year earnings declines — for the first time since 2016. In addition to mounting trade concerns and slowing domestic growth, corporate profits are under pressure from higher labor and supply costs. FT