Posted on 12/12/2003 6:06:02 AM PST by Starwind
U.S. NOV PPI fell 0.3 pct
Friday December 12, 8:30 am ET
WASHINGTON, Dec 12 (Reuters) - U.S. Labor Department monthly producer price index (1982 equals 100, except where noted): . Seasonally Adj Unadjusted . Nov Oct Nov03/02 Finished Goods -0.3 0.8 3.4 Less Food, Energy -0.1 0.5 0.5 Consumer Foods -0.3 2.2 7.9 Energy Goods -1.2 -0.1 9.9 Finished Goods Index(X) 144.5 145.5 N/A Residential NatGas(W) -1.1 -1.8 20.8 Gasoline -4.8 -3.0 7.8 Heating Oil -1.6 9.6 12.5 Tobacco Products(X) 0.1 0.5 -7.4 Passenger Cars -0.8 1.6 0.8 Capital Equipment -0.1 0.6 0.9 Pharmaceutical Preps -0.1 0.2 3.9 Intermediate Goods -0.2 0.4 3.3 Less Food, Energy 0.2 0.3 1.8 Manufact Materials 0.2 0.5 2.4 Construction Materials 0.5 0.3 2.9 Intermed.Energy Goods -2.9 0.6 7.9 Crude Goods 0.2 2.6 18.3 Less Food, Energy(Y) 4.3 3.1 17.1 Food/Feedstuffs -0.1 8.9 26.5 Nonfood Materials 0.4 -1.5 13.2 Energy Materials(Z) -1.5 -3.6 11.3 Petroleum(X) -2.3 6.8 18.0 W-1990=100 X-not seasonally adjusted. Y-excludes crude petroleum Z-Includes crude petroleum. N/A-not available FORECAST: Reuters survey of economists forecast: U.S. Nov producer prices +0.1 U.S. Nov producer prices ex-food/energy unch
The 'producers' (companies and industries that make the stuff listed on the left), are being paid less for what they sell...their prices have fallen.
Their prices have fallen, ostensibly because their customers won't pay more, ostensibly because their customers can get as good or better deals from other suppliers.
Generally, there is an excess of supply because there is an overcapacity of production in the world and US, and slack demand because not enough producers' customers need or want what is being sold, because in turn consumers are spending less and need less...etc.
So when consumers demand/buy less it trickles back down the food chain and producers are forced to lower prices to sell what they already have made.
Essentially supply exceeds demand and prices fall.
And then you see that ol' lagging indicator - higher unemployement. Oh wait, we're already seeing that.
Unemployment is lagging so much we've lapped it and are just seeing it again.
Forming into a self feeding vortex...Turds like Greenspan and Rove think that because the current is weaker out on fringes of the swirling waters, that they can ride above the tide, but the fools are blind to the fact that we are all in this toilet together.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.