K2 Sourcing economic indicators for procurement report of US July PPI, based on data from the BLS (https://lnkd.in/gW4dSskq)
In July 2024, the U.S. Producer Price Index (PPI) for final demand increased by 0.1% from the previous month, showing a year-over-year rise of 2.2%. This slight increase was driven by a mix of rising and falling prices across various commodities and services.
Commodities that saw price increases:
Energy: The energy sector saw a 1.9% increase, with gasoline prices rising by 2.8%, diesel fuel by 12.9%, jet fuel by 7.1%, and home heating oil by 9.6%.
Food: Food prices increased by 0.6%, with notable jumps in fresh fruits and melons (up 10.3%) and meats (up 4.5%).
Industrial chemicals: Prices for industrial chemicals rose by 2.4%.
Portfolio management services: Increased by 2.3%, reflecting rising costs in financial services.
Commodities that saw price decreases:
Final Demand Trade Services: This index dropped by 1.3%, which likely reflects reduced margins in business-to-business (B2B) sectors such as Maintenance, Repair, and Operations (MRO), office supplies, and IT consumables. Companies in these sectors, like Grainger and McMaster-Carr, may be experiencing margin pressures due to increased competition, changes in supply chain costs, or shifts in demand.
Fresh and dry vegetables: Prices dropped significantly by 5.4%.
Steel mill products: Declined alongside residential electric power, which decreased by 1.1%.
Final demand services: This sector saw a decrease of 0.2%, with trade services dropping by 1.3%. Specifically, machinery and vehicle wholesaling fell by 4.1%, and retailing of food, alcohol, and automobiles also declined.
The price changes are reflective of the continuing slowdown of industrials, with the exception of the energy and food segment, as shown in ISM purchasing managers index.
For real-time notifications follow K2 Sourcing on LinkedIn > K2 Sourcing
K2 Sourcing economic indicators for procurement report of US July PPI, based on data from the BLS (https://lnkd.in/gW4dSskq)
In July 2024, the U.S. Producer Price Index (PPI) for final demand increased by 0.1% from the previous month, showing a year-over-year rise of 2.2%. This slight increase was driven by a mix of rising and falling prices across various commodities and services.
Commodities that saw price increases:
Energy: The energy sector saw a 1.9% increase, with gasoline prices rising by 2.8%, diesel fuel by 12.9%, jet fuel by 7.1%, and home heating oil by 9.6%.
Food: Food prices increased by 0.6%, with notable jumps in fresh fruits and melons (up 10.3%) and meats (up 4.5%).
Industrial chemicals: Prices for industrial chemicals rose by 2.4%.
Portfolio management services: Increased by 2.3%, reflecting rising costs in financial services.
Commodities that saw price decreases:
Final Demand Trade Services: This index dropped by 1.3%, which likely reflects reduced margins in business-to-business (B2B) sectors such as Maintenance, Repair, and Operations (MRO), office supplies, and IT consumables. Companies in these sectors, like Grainger and McMaster-Carr, may be experiencing margin pressures due to increased competition, changes in supply chain costs, or shifts in demand.
Fresh and dry vegetables: Prices dropped significantly by 5.4%.
Steel mill products: Declined alongside residential electric power, which decreased by 1.1%.
Final demand services: This sector saw a decrease of 0.2%, with trade services dropping by 1.3%. Specifically, machinery and vehicle wholesaling fell by 4.1%, and retailing of food, alcohol, and automobiles also declined.
The price changes are reflective of the continuing slowdown of industrials, with the exception of the energy and food segment, as shown in ISM purchasing managers index.
For real-time notifications follow K2 Sourcing on LinkedIn > K2 Sourcing
