The annual rate of inflation for goods leaving the factory gate slowed for the third time this year, mainly as a result of 2016 price movements dropping out of the annual comparison. Factory gate prices (output prices) rose 3.2% on the year to July 2017, from 3.3% in June 2017, which is a 0.5 percentage points decline from their recent peak of 3.7% in February and March 2017. Prices for materials and fuels (input prices) rose 6.5% on the year to July 2017, from 10% in June 2017; as per factory gate prices, the drop in July’s rate is due to 2016 price movements dropping out of the annual comparison.
In the US session Retail Sales data was published. U.S. retail sales advanced in July by the most this year, with widespread gains from department stores to building materials outlets that signal a robust start to consumer spending in the third quarter, according to Commerce Department figures released Tuesday. Overall sales climbed 0.6% (est. 0.3% gain) after 0.3% advance in prior month (revised from 0.2% decline.
From the UK, tomorrow, job figures will be published. Analysts predict no change in unemployment rate, while number of unemployed should increase by 7,200. In the US session Building Permits and Housing Starts data will be released. Building Permits should decline to 1.25 million, while housing starts should incline slightly to 1.23 million.
Figures to watch:
Claimant Count Change/Unemployment Rate (Wednesday 10:30)
Building Permits/Housing starts (Wednesday 14:30)
