The release schedules of both the PPI and CPI have landed in the same week, but recently they have been shifted off kilter, with the PPI set to release the prior week. Limited information from the Core PPI—which came in higher than expected—was released, with the full data release delayed and likely to be published alongside the CPI data. Outside of these two releases, the unemployment data that was set to be released this week has also been delayed and is now due next week. This leaves Consumer Confidence as the only major release, which broke a six-month downtrend, showing a more positive reception this time around.
Consumer Confidence
For months, economists have been worried that the U.S. was on the cusp of a recession, with a weak labor market despite relatively stable economic growth. The feeling was that a “low-hire, low-fire” economy could quickly deteriorate into more layoffs. Workers would then have trouble finding new work, leading to a sharp uptick in the unemployment rate and an economic downturn.
Core PPI (Only)
The cost of wholesale goods and services rose at an accelerated pace in January for the second month in a row, suggesting persistent inflation could dog the economy at least through the early part of the new year. Producer prices rose 0.5% in January, according to an index published by the government. It was the biggest increase in four months and topped the 0.3% Wall Street forecast.
Primary Mortgage Market Survey Index
- 15-Year FRM rates saw an increase of 0.09%, with the current rate at 5.44%
- 30-Year FRM rates saw a decrease of -0.03%, with the current rate at 5.98%
MND Rate Index
- 30-Year FHA rates saw a decrease of -0.01%, with current rates at 5.62%
- 30-Year VA rates saw a decrease of -0.01%, with current rates at 5.64%
Jobless Claims
Initial Claims were reported to be 212,000 compared to the expected claims of 215,000. The prior week landed at 208,000.
What’s Ahead
The Consumer Price Index, Unemployment Data, and the rest of the Producer Price Index data is set to be released in the following week.