Key U.S. inflation measure declines in September
U.S. producer prices stalled in September, while UK GDP showed modest growth, driven by gains in services and construction.
U.S. PPI remained flat in September
UK GDP grew 0.2% in August
US producer prices stall in September
The U.S. Producer Price Index (PPI) for final demand remained flat in September, coming in at 0.0% month-over-month, missing expectations of a 0.1% rise. While PPI services recorded a modest increase of 0.2%, the goods sector saw a decline of -0.2%, reflecting softer demand. Stripping out volatile categories like food, energy, and trade services, core PPI rose by 0.1% month-over-month. On an annual basis, PPI climbed by 1.8% year-over-year, slightly down from 1.9% in the prior month but in line with market forecasts. Core PPI, excluding food, energy, and trade services, increased by 3.2% year-over-year, highlighting underlying inflationary pressures that remain subdued.
UK GDP grows 0.2% in August
The UK economy expanded by 0.2% month-over-month in August, aligning with expectations. The modest growth was driven by a 0.1% increase in services output, a crucial contributor to the UK economy. Additionally, production output climbed by 0.5%, while the construction sector saw a 0.4% rise. In the three months leading to August, GDP growth stood at 0.2%, with service output showing a marginal 0.1% increase and production remaining flat. However, the construction sector displayed stronger performance, rising 1.0% over the same period. These figures suggest the UK economy is maintaining moderate growth momentum despite ongoing challenges.