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.

By Ahmed Azzam | @3zzamous | 11 October 2024

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  • 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.

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