U.S. producer prices were flat in August as the cost of energy products declined and trade services fell, but underlying producer inflation firmed. The Labor Department said on Thursday the unchanged reading in its producer price index for final demand followed a 0.4 percent drop in July. In the 12 months through August, the PPI was unchanged after decreasing 0.2 percent in July. Economists polled by Reuters had forecast the PPI nudging up 0.1 percent last month and gaining 0.1 percent from a year ago. Producer prices have been dampened by a strong dollar and cheaper oil. But some of the drag is easing with the dollar rally appearing to have peaked early this year and oil prices having pushed off multi-decade lows.
Sales at U.S. retailers fell in August for the first time in five months as traffic dropped off for most stores, a sign that third-quarter growth might not be as strong as previously estimated. Retail sales declined a seasonally adjusted 0.3%, the government said Thursday. Economists surveyed by MarketWatch had forecast a 0.1% decline. Retail sales have zig-zagged for months, mirroring a U.S. economy whose growth has flagged. Some segments such as online shopping have been doing great, while more traditional sellers such as department stores have fared poorly.
Euro is currently being traded around 1.1250 level, Sterling is around 1.32 handle, while Aussie is near 0.75 area.
