U.S. Economic News
September 12, 2018
U.S. Economic Indicators
The headline Producer Price Index (“PPI”) for final demand edged down 0.1% in August but is up 2.8% since August of last year. The core — which removes the volatile prices of food, energy, and trade services — edged up 0.1% and is up 2.9% on the year. BLS Report
U.S. News
The Wall Street Journal reports that Chinese leaders have told American business executives that Beijing will not target American firms’ operations in China as retaliation against U.S. tariffs. The shift in tone from just a few months ago, when Chinese officials warned of “corporate casualties” in the escalating trade war, comes as China’s economy appears to have weakened somewhat. WSJ
Richard Waters of the Financial Times writes that tech startups are bearing the brunt of U.S. tariffs on key Chinese technological items. Small companies have been forced to raise prices for their goods as tariffs have piled up and many companies face inflexible supply chains due to smaller pools of available cash and long-term existing commitments. FT