U.S. ECONOMICS: CIBC On Producer Prices, Empire Manufacturing
CIBC notes the U.S. producer prices data was broadly in line with consensus forecasts. Within the data, it notes prices of consumer goods, a potential guide to trends in CPI, rose 0.5% following a run of marginal declines. But CIBC says even with stronger trends in December, inflation remains "soft" with the annual rate of core PPI still at muted 1.4%.
Separately, CIBC says the Empire manufacturing survey added to evidence of underlying improvement in the manufacturing sector. "The detail of the survey was also encouraging, with significant improvements in balances for new orders, shipments and employee numbers," it adds.
According to CIBC, the better than expected Empire reading may be "marginally negative" for fixed income today, and supportive for the US$.