- Richard Curtin
U.S. wholesale prices increased at a slower pace in July as fuel costs decline the most in eight months. The 0.1% rise in the producer price index came in line with economists expectations and followed a 0.4% gain in the previous month, according to the Labor Department. The core measure, which excludes volatile food and fuel, inched higher 0.2%. The annual factory inflation rate in July came in at 1.7%, after the PPI advanced 1.9% on a yearly basis in June. The rate hit a two-year high of 2.1% in April and has moderated since then. The report should help to temper investors' worries over the outlook for the first interest rate hike. In the meantime, industrial production rose at the fastest pace in five months in July as capital spending increased and motor vehicle demand surged, indicating the industry is helping bolster the U.S. economy. The 1% advance at manufacturers followed a 0.3% increase in the previous month that was more than initially projected. Total industrial production, which also includes mines and utilities, grew 0.4% for a second month in July.
A separate report showed U.S. consumers became less optimistic, with the corresponding gauge falling in August to the lowest level since November 2014, while a the current economic conditions barometer hit the highest since July 2007. August reading of the overall index on consumer sentiment was 79.2, compared to the final gauge of 81.8 the previous month.
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