U.S. Economic News
July 10, 2020
U.S. Economic Indicators
The headline Producer Price Index (“PPI”) for final demand fell 0.2% in June and is down 0.8% year-over-year. The core – which removes the volatile prices of food, energy, and trade services – rose 0.3% in June, the largest increase since January, but is down 0.1% from a year ago. BLS Report
U.S. News
The Washington Post reports that state transportation departments face an estimated $50 billion shortfall in funding due to the loss of tax revenue from gasoline, forcing states to delay much-needed infrastructure projects. Transportation organizations are urging Congress to close the budget gap in an additional stimulus package, arguing that such a measure would help bring back jobs and provide a boost to productivity. WaPo
Bloomberg reports that U.S. banks are expected to reveal their worst quarterly performance since the financial crisis when second quarter results are released next week. Banks have combated the rise in unemployment and consumer spending slowdown by increasing loan-loss provisions to post-2008 highs, a hit to earnings that has been partially offset by trading revenue and refinancing activity. Bloomberg