US consumer spending gains speed |
| Financial Times - Dec 13, 2012 |
Wholesale prices in the US fell more than expected in November as energy prices suffered their biggest drop in three years, while weekly jobless claims declined sharply and retail sales rose.
The labour department’s producer price index fell 0.8 per cent last month following a 0.2 per cent decline in October. Economists surveyed by Bloomberg expected a 0.5 per cent fall.
Core wholesale prices, which excludes the volatile food and energy components, edged 0.1 per cent higher in November after a 0.2 per cent fall the month before. A 0.2 per cent rise had been expected.
Energy costs at the producer level dropped a sharp monthly 4.6 per cent in November – the largest fall since March 2009 – following a 0.5 per cent rise the prior month as petrol prices declined 10.1 per cent, following a decrease of 2.2 per cent in October.
Economists had their sights firmly set on the debate surrounding the resolution of January’s so-called fiscal cliff – about $500bn in tax increases and spending cuts that automatically kick in at the start of next year.
“We’re going to see soft gasoline prices over the next month, particularly regarding the uncertainty surrounding the fiscal cliff and weaker growth outside the US,” said Sam Bullard, senior economist at Wells Fargo Securities. “Growth will pick up in the US next year, after consumers and businesses adjust to new tax policies.”
Read Full Article from Financial Times
- Posted: 2012-12-13 16:50:46
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