MNI DATA IMPACT: US March PPI Above-Expected +0.6%>

--Core PPI +0.3% Vs +0.2% Expected; Also Ex. Trade Services Flat

--Initial Jobless Claims -8k To 196k in April 6 Week

By Harrison Clarke

     WASHINGTON (MNI) - The March PPI data were above expectations, 

raising the year/year headline rate slightly. Overall PPI rose by 0.6%, 

compared with a 0.3% gain expected in both the MNI and Bloomberg 

surveys, while core prices rose 0.3%, above the 0.2% gain expected. 

     Also released on Thursday, the level of initial jobless claims fell 

by 8,000 to 196,000 in the April 6 week, well below the 210,000 level 

expected and the lowest level since the October 4, 1969 week. 

     Here are some of the key takeaways from the data released 

Wednesday: 

     - March PPI was up 0.6% (+0.597% unrounded) month/month overall on 

a sharp gain in energy prices and the larger than expected core reading, 

accompanied by a gain in food prices. Trade services prices also rose on 

the month. 

     - Due to the increase for overall PPI, the year/year rate rose to 

+2.2% from +1.9% in February. At the same time, but the year/year rate 

for core prices fell to +2.4% from +2.5% in February. Also excluding 

trade prices, PPI was flat month/month and up 2.0% year/year, less than 

the 2.3% year/year gain in February. 

     - Core PPI was +0.257% unrounded, on the low side of +0.3%, with 

the major components generally up. 

     - Energy prices rose by 5.6% in March after a 1.8% gain in 

February, with gasoline prices rising 16.0%. AAA noted higher gasoline 

prices in mid-April than a month ago, so another gain in next month's 

data is possible. Electricity prices rose 0.6% and natural gas prices 

were up 1.4%. PPI excluding only energy posted a 0.3% gain, while food 

prices were up 0.3%.

     - The four-week moving average for claims fell by 7,000 to 207,000 

in the April 6 week, the lowest since the December 6, 1969 week, and 

could fall in the following week. Continuing claims fell by 13,000 to 

1.713 million in the March 30 week. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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