Economic Indicators for the Week of March 10th

Economic Indicators for the Week of March 10th

Tuesday March 11


Wholesale Inventories

-rose more than expected

-rose 0.6%

-key component of GDP

-Economists believe the current inventory level is unsustainable and expect the build-up in unsold stocks to eventually reverse


Wholesaler sales

-fell 1.9%

-biggest drop since March 2009

-sales pace it would take 1.2 months to clear shelves


Thursday March 13


Export Prices

-up 0.6%

-major mover was rise in fuel costs and a one month jump in agricultural prices

-a minimal 0.2% increase when fuel and food is excluded


Import Prices

-up 0.9%

-again the major mover was fuel costs

-oil prices were up 4.4%

-natural gas was up 22.4% due to weather

-excluding fuel import prices fell 0.2% which is the second negative reading in the last 3 months


Business Inventories

-rose 0.4% after increasing 0.5% in December

-Business inventories are a key component that goes into calculating GDP

-Businesses accumulated a massive amount of stock in the second half of the year, which economists say will undercut first-quarter growth


Business Sales

-fell 0.9% which is the largest since March of last year

-a drop in sales meant it was now taking the longest time since late 2009 to move goods from    shelves

-At January’s sales pace, it would take 1.32 months for businesses to clear shelves, up from 1.30 months in December

-It was the highest inventory-to-sales ratio since October 2009


Initial Jobless Claims

-fell unexpectedly and hit a 3 month low

-fell 9,000 to a seasonally adjusted 315,000

-may suggest strength in the labor market

-The four-week moving average for new claims, considered a better measure of underlying labor market conditions as it irons out week-to-week volatility, fell 6,250 to 330,500, the lowest level since early December

Friday March 14


Producer Price Index

-fell 0.1%

-reinforcing the view that minimal inflation will keep the Fed from raising interest rates

-gives Fed officials a reason to not worry about their easy monetary policy creating substantial inflation

-PPI measures price change from the perspective of the seller

-PPI looks at three areas of production- industry-based, commodity-based, and stage-of-processing companies

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