(La plaça del centro) – The latest economic data show that producer prices saw their biggest drop since the pandemic began.
The US Bureau of Labor Statistics released producer price index data on Thursday, showing that the final demand index fell 0.5% in March, although it rose a 2.7% over the last year.
“A 7.3 percent drop in machinery and vehicle wholesale margins was a major factor in March’s decline in final demand services prices,” the BLS said. “Indices for trucking, portfolio management, retail fuel and lubricants, (partial) loan services, and retail sales of automobiles and auto parts also fell. Conversely, prices of room rentals rose 4.6 percent Food retail sales and passenger transportation (partial) indexes also advanced.
BLS also published consumer prices data earlier this week, which showed consumer prices rose 0.1% in March, contributing to a 5% increase over the past 12 months, about double what most economists say is a healthy inflation rate.
President Joe Biden has touted the fact that inflation is rising much less slowly than earlier in his administration. Republicans have criticized Biden for higher prices and their impact on Americans and small businesses.
“Small businesses can’t catch a break on the Biden economy,” said House Ways and Means Committee Chairman Jason Smith, R-Mo. “Rising prices for supplies, materials and goods from reckless spending by Democrats in Washington and the inflationary crisis have left businesses scrambling to keep their doors open. Rising interest rates have exacerbated problems for small businesses that now need to borrow to pay payroll while permanently abandoning plans to expand or grow.”
The National Federation of Independent Business released survey results earlier this week and reported that its optimism index for small businesses declined in March, part of a trend of lower optimism that has been maintained for more than a year.
“Small business owners are cynical about future economic conditions,” said NFIB Chief Economist Bill Dunkelberg. “Hiring plans fell to their lowest level since May 2020, but strong consumer spending has kept Main Street alive and supported strong job demand.”
By Casey Harper | The Center Square
