Import and export prices (indices) for October went further into contraction, both declined 0.3%. Import prices are down 10.5% YoY reflecting a strong dollar and lower prices caused by the oil price downturn. Export prices, on the other hand, are down 6.7% YoY signaling global deflationary pressure and falling production.
Crude Oil (CL1) is down 8.4% this week. It rose to $44.69 per barrel on Tuesday before falling to $40.74 on Friday. US commercial inventories rose by 4.2 million barrels to 487.0 million barrels from 482.8 million last week according to the EIA. The International Energy Agency (IEA) reported that OECD commercial inventories neared a record 3 billion barrels in September.
Initial unemployment claims for the week ending November 7 are unchanged at 276,000 while continuing claims for the week ended October 31 rose by 5,000. Overall, both initial and continuing claims remain at low levels. According to the Bureau of Labor Statistics (JOLTS report for September), hires (5 million) exceeded separations (4.8 million) which is a positive sign, but that was little change from August.
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