The Labor Department reported that the producer price index for final demand increased by a seasonally adjusted 0.8% in May after climbing 0.4 % in April and 1.6% in March. On an unadjusted basis, the PPI is up 10.8% for the 12-month period ending in May, down slightly from April’s revised 10.9%. A primary contributor to the rise in the final demand index was a 1.4% increase for final demand goods, this is the fifth consecutive monthly increase. A 5.0% increase in the index for final demand energy accounted for 70% of the increase in the final demand goods index. Prices of jet fuel (+12.0%), gasoline (+8.4%), residential natural gas (+6.2%), and diesel fuel (+2.7%) all contributed. Prices for final demand services climbed 0.4%, following a 0.2% drop in May. Over half of the broad-based advance is attributable to a 2.9% increase in prices for final demand transportation and warehousing services. The producer-price index excluding food and energy rose 0.5% from a month earlier and follows a 0.2% increase in April. On an unadjusted basis, the PPI excluding food and energy is up 8.3% for the 12-month period ending in May.
The Commerce Department reported advance U.S. retail and food services sales decreased 0.3% to $672.9B in May, this follows a downwardly revised 0.7% increase for April and is the first drop in 5 months. Retail sales are up 8.1% year over year, much of the increase is due to higher prices. Total sales for March 2022 through May 2022 were up 7.7% year over year. Much of the decrease in May retail sales was attributable to a drop in spending on autos and parts (-3.5%). Excluding auto sales, retail sales in May were up 0.5% from April. Miscellaneous stores (-1.1%), nonstore retailers (-1.0%), and electronics & appliances (-1.3%) all saw decreases. Increases in gasoline (+4.0%), food and beverage (+1.2%), and sporting goods (+0.4%) were not enough to offset the decreases. When sales for gas stations and autos are excluded, retail sales increased 0.1%. Core retail sales, a measurement that excludes spending on autos, gasoline, building materials, and food services were unchanged from April. April’s core retail sales were revised down to show sales increasing 0.5% instead of 1.0%.
The U.S. Census Bureau reported new residential building permits were down 7.0% in May to a seasonally adjusted 1.695M. Data for April was upwardly revised to 1.810M from 1.724M units. New residential building permits are running 0.2% above the May 2021 level. Single-family permits were down 5.5% from April’s revised 1.128M, while multifamily permits dropped 10.0% to 592K. Building permits dropped across all regions with the Northeast tumbling (-20.2%) followed by the Midwest (-7.6%), West (-7.1%), and South (-4.7%). Housing starts fell for the second month in a row, dropping 14.4% to a seasonally adjusted annual rate of 1.549M units, the lowest level since April 2021. Single-family housing starts, which account for the majority share of homebuilding, fell 9.2% to a rate of 1.051M units. Starts for housing projects with five units or more plunged 26.8% to a rate of 469K units. Single-family housing completions came in at 1.043M, 2.8% above April’s reading. Multifamily completions were up 33.2% to 417K. The number of houses approved for construction but not yet started increased 0.7% to 283K units, with the backlog for single-family housing remaining unchanged at 152K.
|