US producer prices fell in March by the most since the start of the pandemic, driven by a decline in gasoline costs that has helped slow inflationary pressures.

The producer price index for final demand decreased 0.5% from a month earlier, according to data out Thursday from the Bureau of Labor Statistics. The figure was below all estimates in a Bloomberg survey of economists. The PPI slowed on an annual basis, rising 2.7% from a year ago, the smallest gain in more than two years.

Excluding the volatile food and energy components, the so-called core PPI fell 0.1% from February and increased 3.4% from a year ago.

Most of the monthly decline in the overall PPI was due to goods, with 80% of that decrease tied to a drop in gasoline. Margins for machinery and vehicle wholesaling were a major factor in the 0.3% slide in services costs. Those prices slid by the most since April 2020. (Bloomberg - Continue Reading)

The UK economy appeared listless in February as labour disputes and national strike action took their toll on activity.

In the month to February, GDP growth was flat, undershooting estimates of a 0.1% expansion and below January’s upwardly revised 0.4%. Three-month-on-three-month economic activity rose 0.1%, up slightly on forecasts.

Darren Morgan, director of economic statistics at the ONS, said, “Construction grew strongly after a poor January, with increased repair work taking place. There was also a boost from retailing, with many shops having a buoyant month. 

Offsetting the positive contributions, services, the UK’s largest contributing sector fell by 0.1%, after growing by 0.7% in January. Morgan said the effects of Civil Service and teachers’ strike action, and unseasonably mild weather led to falls in the use of electricity and gas.

Output in consumer-facing services grew by 0.4% on the month, following growth of 0.3% in January but still languish 8.9% below their pre-coronavirus levels (February 2020), while all other services were 2.2% above.

Industrial output fell 0.2% in February, versus 0.2% predicted and a downwardly revised -0.5%. Within the sector, manufacturing was flat with falls in 7 of its 13 sub-sectors. (LiveSquawk - Continue Reading)

European Central Bank policymakers are converging on a 25 basis point interest rate hike in May, even if other options remain on the table and the debate is not yet settled, according to five sources with direct knowledge of the discussion.

The ECB has raised rates by at least 50 basis points each at six successive meetings -- the fastest pace on record -- to fight stubbornly high inflation. But a host of factors now support the case for increased caution, the sources, who declined to be named, told Reuters.

Uncertainty remains high after last month's financial sector volatility and past rate hikes have yet to work their way through the economy, so less is needed because past moves are still taking hold, the sources said. (Reuters - Continue Reading)