Updated: 15-May-25 10:15 ET
| April PPI |
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| Updated: 15-May-25 10:15 ET |
Highlights
- The Producer Price Index for final demand decreased 0.5% month-over month in April (Briefing.com consensus 0.3%). That was the good news. The bad news is that the prior month was revised up to unchanged from a 0.4% decline.
- The Producer Price Index for final demand, less foods and energy, decreased 0.4% month-over-month (Briefing.com consensus 0.3%), again good news, but the bad news (again) is that the prior month was revised up to 0.4% from -0.1%.
- On a year-over-year basis, the index for final demand was up 2.4%, versus an upwardly revised 3.4% (from 2.7%) in March, while the index for final demand, less foods and energy, was up 3.1%, versus an upwardly revised 4.0% (from 3.3%) in March.
Key Factors
- The index for final demand goods was unchanged following a 0.9% decrease in March.
- The index for final demand services declined 0.7% in April, paced by a 1.6% drop in margins for final demand trade services.
- The index for processed goods for intermediate demand was up 0.2% in April after dipping 0.1% in March.
- The index for unprocessed goods for intermediate demand moved down 3.2% in April, with nearly 60% of the decline attributable to the 5.0% decrease in the index for unprocessed energy materials.
Big Picture
- The key takeaway from the report is that the big drop in the index for final demand was driven by a 0.7% decline in the index for final demand services (the largest decline since December 2009). Over 40% of that 0.7% decline was driven by margins for machinery and vehicle wholesaling, which dropped 6.1%. That suggests wholesalers were likely absorbing some tariff impacts, which is good for the end customer but not necessarily for earnings.
| Category | APR | MAR | FEB | JAN | DEC |
| Final Demand | -0.5% | 0.0% | 0.2% | 0.7% | 0.5% |
| Core (excluding ...) | |||||
| Food and Energy | -0.4% | 0.4% | 0.2% | 0.6% | 0.4% |
| Food, Energy, and Trade | -0.1% | 0.2% | 0.4% | 0.4% | 0.4% |
| Final Demand Goods | |||||
| Total | 0.0% | -0.9% | 0.3% | 0.7% | 0.5% |
| Energy | -0.4% | -3.8% | -1.4% | 2.0% | 2.2% |
| Finished Goods | -0.1% | -1.3% | 0.2% | 0.6% | 0.7% |
| Final Demand Services | |||||
| Total | -0.7% | 0.4% | 0.1% | 0.7% | 0.5% |
| Trade | -1.6% | 1.2% | -0.7% | 1.2% | 0.5% |
| Intermediate Demand | |||||
| Processed | 0.2% | -0.1% | 0.4% | 1.1% | 0.2% |
| Unprocessed | -3.2% | -3.4% | 0.6% | 5.7% | 2.9% |
| Services | 0.0% | 0.3% | 0.1% | 0.1% | 0.6% |