Quick PPI and claims data review

PPI for October rose .2% and .3% core m/o/m. While the headline was in line with the estimate, September was revised up by one tenth. The core rate was also one tenth higher than anticipated. Versus last year, headline PPI rose 2.4% and the core rate by 3.1% vs 1.9% and 2.8% respectively. Both food and energy prices fell m/o/m but food is still up 2.7%, partly offsetting the 8.6% fall in energy prices. 

Goods prices ex food and energy were up by .3% m/o/m and 2.2% y/o/y. The BLS attributed some of the gain to an 8.4% jump in carbon steel scrap. 

Service prices grew by .3% m/o/m and 3.5% y/o/y. Higher stock prices interestingly are helping as "over one third of the rise in the index for final demand services can be traced to prices for portfolio management, which advanced by 3.6%." Prices also rose for machinery and vehicle wholesaling; airline passenger services; computer hardware, software, and supplies retailing; outpatient care; and cable and satellite subscriber services. On the flip side on the capital market exposed sectors, prices fell for securities brokerage, dealing and investment advice. Truck transportation prices fell as the market continues to absorb too much capacity.