Analysts at Nomura point out that the US PPI fell 0.1% m-o-m in August and will be a key economic release for today’s session in addition to the wholesale inventories data.
Key Quotes
“Excluding volatile food, energy and trade services, core PPI advanced only a modest 0.1% m-o-m. For September, we expect continued modest acceleration in prices for goods and services provided by domestic businesses. Although wage growth has picked up somewhat in the August employment report, producer price indices have not accelerated notably. Note that our forecasts for the August CPI report may be revised based on relevant components of the PPI report.”
“Wholesale inventories: The Census Bureau’s advance estimates indicate a solid 0.8% m-o-m gain in August’s wholesale inventories led by both durable and nondurable goods. Firm increases in inventory investment will likely contribute strongly to overall real GDP growth in Q3.”
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