Investing.com - Financial Markets Worldwide
⭐ Start off 2025 with a powerful boost to your portfolio: January’s freshest AI-picked stocksUnlock stocks

Black Streak in US Data Continues

ByFxPro Financial Services Ltd
AuthorAlexander Kuptsikevich
Published 06/13/2024, 10:52 AM

The black streak in US data continues. A sharp jump in weekly jobless claims was paired with a weak PPI, complementing the soft consumer inflation report the day before.
US PPI unexpectedly slowed
Manufacturers cut prices by an average of 0.2% in May, and the annual rate of PPI growth fell from 2.3% to 2.2%, contrary to the expected acceleration of 2.5%. Core PPI slowed from 2.5% to 2.3%. The unexpected slowdown in PPI growth calls into question the upward trend we have seen since the beginning of the year. It also increases the chances of a further slowdown in consumer prices in the coming months.

The other dose of bad news is the jump in weekly unemployment benefits claims. That figure rose to 242k, the highest since last July. The trend has been up there since the beginning of the year. Many see this as an important first signal of a turnaround in the labour market.

US Jobless Claims on the rise

The impression is that the economic cycle in the US has already turned, and the Fed, looking for evidence of this, is trailing the cycle, being late in making monetary policy changes. It may well be that already in September-October, we will see a net reduction in employment, and then the Fed will again have to adjust the course in a hurry - this time, to a softer tone.

The FxPro Analyst Team

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.