ALBER&MAR MARKET BRIEF
Friday Week in ReviewProducer prices climb as borrowing and inventory costs rise
This week closed with a firmer cost backdrop. August producer prices accelerated, mortgage rates moved higher, and wholesalers added inventory faster than sales. At the same time, jobless claims remained contained and Dominican inflation eased for a second month. Friday's consumer-price report is the next major test for rates, operating costs, and household purchasing power.
01 · U.S. ECONOMY
Producer prices rise 0.4% as energy lifts goods costs
The Producer Price Index for final demand increased 0.4% in August and 5.4% over the year. Final-demand goods rose 1.1%, driven largely by a 4.2% increase in energy, while services rose 0.1%. The measure excluding food, energy, and trade services increased 0.3% for the month and 4.7% from a year earlier.
02 · HOUSING & FINANCING
Mortgage rates rise to 6.76%
Freddie Mac's September 10 survey put the average 30-year fixed mortgage at 6.76%, up from 6.71% a week earlier. The 15-year average increased to 6.09% from 6.04%. These are national weekly averages based on loan applications, not individual borrower quotes.
03 · LABOR MARKET
Initial jobless claims hold near recent lows
Seasonally adjusted initial claims were 206,000 for the week ended September 5, down 1,000 from the prior week's revised level. The four-week average fell to 206,000, while insured unemployment was 1.774 million for the week ended August 29 and the insured unemployment rate held at 1.2%.
04 · BUSINESS & SUPPLY CHAIN
Wholesale inventories grow faster than sales
July wholesale sales rose 0.8% from June to $801.3 billion and were 13.0% above a year earlier. Inventories increased 1.3% for the month to $958.9 billion and 5.7% over the year. The inventories-to-sales ratio was 1.20, down from 1.28 a year earlier; the estimates are seasonally adjusted but not price-adjusted.
05 · OPERATING COSTS
Private-sector compensation averages $46.89 per hour
Employer compensation costs for private-industry workers averaged $46.89 per hour in June, including $32.82 in wages and salaries and $14.07 in benefits. For firms with 1–49 workers, the average was $37.64 per hour, with wages representing 74.1% and benefits 25.9% of the total.
06 · DOMINICAN REPUBLIC
Dominican inflation eases for a second month
The Banco Central de la República Dominicana reported that consumer prices rose 0.38% in August. Annual inflation slowed to 5.13%, down 0.54 percentage point from June, while core inflation eased to 4.76% and remained within the central bank's 4.0% plus-or-minus 1.0% target range.
07 · FRIDAY WATCHLIST
Consumer inflation and real earnings arrive Friday morning
The Bureau of Labor Statistics is scheduled to publish the August Consumer Price Index and Real Earnings reports at 8:30 a.m. Eastern on Friday, September 11. These are scheduled releases; no result is assumed in this review.