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Final demand services slipped 0.2%, the largest decline since July 2024. Weaker margins in trade services, which fell 0.7%, were the primary drag. Transportation and warehousing services also eased 0.6%. However, core services\u2014excluding trade and transportation\u2014rose slightly by 0.1%, supported by gains in legal and freight services. The index for final demand excluding food, energy, and trade services still rose 0.1% on the month and 3.4% over the past year, indicating persistent stickiness in non-commodity inflation.<\/p>\n
At earlier production stages, intermediate demand goods and services also showed weakness. Unprocessed goods prices plunged 4.1%, led by a 7.5% drop in foodstuffs and a 3.3% slide in energy inputs. Processed goods were flat overall, with gains in metals offsetting fuel declines. Service prices for intermediate demand ticked down 0.1%, pulled lower by loan services and retail property rents.<\/p>\n
All four stages of intermediate demand posted declines, with stage 3 demand down 1.0%\u2014the sharpest drop since May 2023. Goods inputs to this stage fell 2.2%, reflecting broader easing in raw material costs. Stage 2 and stage 1 indexes also contracted, reinforcing signals of decelerating pipeline pressures.<\/p>\n
March\u2019s PPI data points to easing input costs, especially in energy and food, with modest underlying inflation in core services. The broad-based pullback in producer prices will likely feed into softer consumer price expectations and reduce pressure on the Fed to tighten further. In the short term, traders should expect a bearish tilt on inflation-linked assets and potential support for rate-sensitive instruments.<\/p>\n<\/div>\n
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[ad_1] Service Margins Soften Further Final demand services slipped 0.2%, the largest decline since July 2024. Weaker margins in trade services, which fell 0.7%, were the primary drag. Transportation and warehousing services also eased 0.6%. However, core services\u2014excluding trade and transportation\u2014rose slightly by 0.1%, supported by gains in legal and freight services. The index for final demand excluding food, energy, and trade services still rose 0.1% on the month and 3.4% over the past year, indicating persistent stickiness in non-commodity inflation. At earlier production stages, intermediate demand goods and services also showed weakness. Unprocessed goods prices plunged 4.1%, led by a 7.5% drop in foodstuffs and a 3.3% slide in energy inputs. Processed goods were flat overall, with gains in metals offsetting fuel declines. Service prices for intermediate demand ticked down 0.1%, pulled lower by loan services and retail property rents. Demand Weakness Broadens Across Production Flow All four stages of intermediate demand posted declines, with stage 3 demand down 1.0%\u2014the sharpest drop since May 2023. Goods inputs to this stage fell 2.2%, reflecting broader easing in raw material costs. Stage 2 and stage 1 indexes also contracted, reinforcing signals of decelerating pipeline pressures. Market Forecast: Bearish Near-Term Pressure on Inflation Expectations March\u2019s PPI data points to easing input costs, especially in energy and food, with modest underlying inflation in core services. The broad-based pullback in producer prices will likely feed into softer consumer price expectations and reduce pressure on the Fed to tighten further. In the short term, traders should expect a bearish tilt on inflation-linked assets and potential support for rate-sensitive instruments. [ad_2]<\/p>\n","protected":false},"author":1,"featured_media":42652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-42651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financas"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/42651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/comments?post=42651"}],"version-history":[{"count":0,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/posts\/42651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media\/42652"}],"wp:attachment":[{"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/media?parent=42651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/categories?post=42651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tiproject.online\/index.php\/wp-json\/wp\/v2\/tags?post=42651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}