Producer Price Index Grows in August; Retail Sales Rise

Prices paid to U.S. producers rose 0.3% in August, the Labor Department reported Sept. 13.

The increased producer price index reading followed a July rate that did not change from the previous month. Economists had forecast a 0.2% increase, Bloomberg News reported.

The so-called core PPI, which excludes food and energy, did not change in August, though economists had expected a 0.1% gain.

An increase in the PPI could indicate strong demand for goods, which would mean more shipments for trucking companies. However, if inflation begins to accelerate too quickly, the economy could be hurt.



Retail sales increased 0.2% in August, the fifth consecutive monthly gain, according to a separate report from the Commerce Department.

The upturn followed a 0.4% rise in July that was larger than the 0.2% originally reported.

Economists had forecast a 0.5% increase for July, Bloomberg reported.

Eight of 13 major categories showed gains, led by auto dealerships, electronics outlets and furniture stores.

Almost all trucking operations depend on the health of retail sales because such sales involve nearly every type of cargo.