US: Producer prices and business inventories data eyed – Nomura

Producer prices and business inventories data is likely to garner investors’ attention as well in today’s US session according to the analysts at Nomura.

 Key Quotes

 “Producer prices: Producer prices remained flat in October after a modest increase of 0.3% in September. Excluding volatile components such as food, energy, and trade, core PPI dropped slightly by 0.1% following a 0.3% increase in the prior month. In November, ISM surveys suggest there was robust demand for domestically-produced goods and services, which may have a positive impact on PPI. Consensus expects a headline PPI to grow 0.1% m-o-m in November. Note that the PPI report could impact our inflation forecast for November.”

“Business inventories: Total business inventories were up 0.1% in September, after growing 0.2% in the prior month. In October, incoming data suggest that inventory accumulation was weak. The final estimate of manufacturers’ inventories was little changed in October. According to a preliminary report, retailers’ and wholesalers’ inventories were down 0.4%. Taking these factors into account, consensus forecasts that total business inventories declined 0.1% m-o-m in October.”