U.S. Economic News
October 10, 2018
U.S. Economic Indicators
The headline Producer Price Index (“PPI”) for final demand rose 0.2% in September and is up 2.6% since September of last year. The core — which removes the volatile prices of food, energy, and trade services — surged 0.4% and is up 2.9% on the year. BLS Report
The U.S. Census Bureau reports that wholesale merchant inventories rose 1.0% in August to $642.7 billion. Inventories were up 5.3% year-over-year. Census Report
U.S. News
Former chair of the Council of Economic Advisers Edward Lazear writes in a Wall Street Journal op-ed that the U.S. economy is not yet overheating. Lazear argues that because the U.S. labor market is still adding jobs at a rate above that which is needed to match the population growth rate there must still be slack in the economy. WSJ
The Financial Times reports that U.S. Treasury Secretary Mnuchin has warned China not to competitively devalue the renminbi. The renminbi is now approaching its weakest point against the U.S. dollar since 2008, which may be an intentional devaluation but also likely reflects a slowing Chinese economy, a broader emerging-market selloff, and a strengthening U.S. dollar. FT