US: PPI and wholesale inventories data in focus - Nomura

Analysts at Nomura explain that in the US, upstream producer price pressures have strengthened recently and stripping out volatile food, energy and trade service components, “core” PPI increased strongly by 0.4% m-o-m for the third consecutive month in March.

Key Quotes

“The recent pickup in PPI is consistent with elevated prices paid index readings from incoming business surveys. Various regional surveys pointed to rising input prices while citing concerns over upward input price pressure from tariffs. A steady increase in April’s PPI report should highlight continued pipeline price pressure.”

“Wholesale inventories: The Census Bureau’s advance estimate suggests that wholesale inventories rose a solid 0.5% m-o-m in March, driven by a firm 0.8% increase in the stock of durable goods. The improvement in wholesale inventories added solidly to GDP growth in Q1. We expect continued contribution from inventory accumulation to growth.”