Producer Price Index came in showing an increase in prices at the wholesale level of a robust 1.4% month-over-month, above expectations of an increase of 1.0%. The year-over-year number was even more concerning, showing an increase of 7.2%. However, the core rate, which excludes food and energy, came in as expected at a relatively benign 0.2% on the month.
Housing starts fell 3.3% to 975,000 units on an annualized basis, which was lower than the expected decline to 980,000 and the lowest reading since March of 1991. More from Bloomberg...
Industrial production fell 0.2%, below the forecast of a 0.1% rise, and capacity utilization slipped from 79.6% in April to 79.4% in May, below the forecast of 79.7%. Weakness in production was led by a 1.8% drop in output from utilities. But excluding energy, production was unchanged and is down 0.6% from a year ago. Autos and construction supplies continue to be a drag on the manufacturing sector.
