US PPI final demand April 2.3% versus 2.4% expected

• Prior month 2.7% YoY
• PPI final demand YoY 2.3% versus 2.4% expected. This is the 11th month in a row lower
• PPI final demand ex food and energy YoY 3.2% vs 3.3% expected. Prior month 3.4%. This is the 13th decline in row.
• PPI MoM 0.2% versus 0.3% estimate
• PPI ex food and energy MoM is 0.2% vs 0.2% expected

Final Demand Details the:

• Final demand services: increased 0.3% in April

  • Largest increase since November 2022's 0.4% rise
  • Final demand services less trade, transportation, and warehousing climbed 0.4%
  • Margins for final demand trade services increased 0.5%
  • Final demand transportation and warehousing services decreased 1.7%

• Product details: Over one-third of April advance in final demand services due to a 4.1% rise in portfolio management prices

  • Other increases: food and alcohol wholesaling, outpatient care, loan services, hospital inpatient care, guestroom rental
  • Decreases: long-distance motor carrying (2.3%), food retailing, securities brokerage, dealing, and investment advice

• Final demand goods: we increased 0.2% in April

  • Final demand energy rose 0.8%
  • Final demand goods less foods and energy increased 0.2%
  • Final demand foods decreased 0.5%

• Product detail for final demand goods

  • Major factor: 8.4% advance in gasoline prices
  • Increases: fresh and dry vegetables, carbon steel scrap, plastic resins and materials, aircraft and aircraft equipment, fluid power equipment
  • Decreases: chicken eggs (37.9%), jet fuel, light motor trucks

The data continues to show declining pipeline inflation for producers (see YoY chart below). YoY is the lowest since January 2021 and in the range that persisted before Covid.