Wholesale prices in the U.S. rose less than expected in July as high energy costs were offset by a sharp drop in food prices.
Meanwhile, the U.S. trade gap hit another record in June as exports slipped and the nation’s energy-import bill rose amid high oil prices.
A third report showed consumer confidence slipped in August.
The producer-price index for finished goods climbed 0.1% last month, after a 0.3% slide in June, the Labor Department reported Friday. Aside from food and energy prices , gains in producer prices actually moderated: The core index, which excludes those categories, showed a growth rate of 0.1%, down from a 0.2% in June.
Economists had expected increases of 0.2% and 0.1%, in overall and core prices, respectively.
Energy prices in July advanced 2.3%, the largest increase since January. Gasoline prices rose 5.4%, reversing a 5.2% decline in June.
Food prices registered the biggest decline in more than two years, falling 1.6% after a 0.6% drop in June.
A separate report showed the trade gap widened more than expected in June to a record $55.82 billion, according to the Commerce Department, as exports slipped and energy import volumes rose despite the high price of oil. The deficit was $46.88 billion in May, up from an initial estimate of $45.95 billion. Economists had expected the June reading to show a $47.5 billion deficit.
Exports fell 4.3% to $92.82 billion, the lowest level in four months amid a drop in overseas sales of big-ticket items such as aircraft, semiconductors, and industrial machines. In contrast, imports climbed 3.3% to $148.64 billion, propelled by soaring energy costs.
Meanwhile, the University of Michigan reported its gauge of consumer confidence fell to 94 in a mid-August reading from 96.7 at the end of July. Economists had expected the gauge to tick higher to 97.5.
U.S. producer price inflation moderates
Trade deficit hits new record amid high oil prices
- By: IE Staff
- August 13, 2004 August 13, 2004
- 09:15