MetroIntelligence Economic Update by P. DUFFY
Producer Price Index increase edges down to 0.5 percent in September, but still up 8.6 percent year-on-year
The Producer Price Index for final demand increased 0.5 percent in September after rising 0.7 percent in August and 1.0 percent in July. The final demand index rose 8.6 percent for the 12 months ended in September, the largest advance since 12-month data were first calculated in November 2010. Prices for final demand less foods, energy, and trade services moved up 0.1 percent in September after increasing 0.3 percent in August. For the 12 months ended in September, the index for final demand less foods, energy, and trade services rose 5.9 percent.
Initial unemployment claims drop to 293,000, lowest level since mid-March 2000
In the week ending October 9, initial unemployment claims were 293,000, a decrease of 36,000 from the previous week’s revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. Continued claims for the week ending October 2 were 2,593,000, a decrease of 134,000 from the previous week’s revised level. This is the lowest level for insured unemployment since March 14, 2020 when it was 1,770,000. The total number of continued weeks claimed for benefits in all programs for the week ending September 25 was 3,649,013, a decrease of 523,426 from the previous week.
Federal Reserve meeting minutes shows tapering of asset purchases could begin by end of 2021
No decision to proceed with a moderation of asset purchases was made at the meeting, but participants generally assessed that, provided that the economic recovery remained broadly on track, a gradual tapering process that concluded around the middle of next year would likely be appropriate. Participants noted that if a decision to begin tapering purchases occurred at the next meeting, the process of tapering could commence with the monthly purchase calendars beginning in either mid-November or mid-December.