Retail sales fell 0.1% in October

Nov. 15:

Advance Retail Sales fell 0.1% in October, a smaller than expected decline. Sales in the “control group,” a component of retail sales used to calculate Gross Domestic Product, were up 0.2%, as expected. 

Gas price drop led decline in producer prices

The Producer Price Index unexpectedly dropped 0.5% in October, and the core PPI was flat. Year over year, PPI growth dropped to 1.3% from 2.2% in September, while growth in the core index fell to 2.4% from 2.7%. Most of the decline was due to a 15.3% drop in the price of gasoline.

State of the market

The stronger than expected retail sales results caused rates to rise a bit this morning, and the Dow traded up.

Economic calendar

Wednesday, Nov. 15

• Empire State Manufacturing Survey
• Business Inventories

Thursday, Nov. 16

• Industrial Production/Capacity Utilization
• Philadelphia Fed Manufacturing Business Outlook
• Weekly Initial Jobless Claims
• Import Price Index

Friday, Nov. 17

• Housing Starts/Building Permits

Treasury calendar

There are no auctions of Treasury notes or bonds the week of Nov. 13.

By Mike Kraft, Executive Director and Commercial Real Estate Treasurer for Commercial Banking