The Producer Price Index (PPI) for July has come in below expectations and fell for the first time in 11 months.
Editor’s Remarks: Economic data coming out over the summer may be showing that global growth could be flagging into the second half of the year. After Germany and China both released disappointing trade figures for June and July, US PPI for July came in at -0.1% compared with market expectations of a 0.2% monthly rise. The Federal Reserve does not meet again until mid-September but continued weak readings such as these could lead them to scale back their plans for future interest rate rises. The data has come out as global markets continue to show weakness in the face of Korean peninsula tensions and the VIX index, which measure global market volatility, climbed to above 15% for the first time since May.