美国4月PPI同比2.4%，好于预期的2.5%，前值2.7%，核心PPI同比3.1%持平预期，较前值3.3%小幅放缓。In April, the PPI in the USA unexpectedly dropped significantly by 0.5%, marking the largest decline in five years, primarily due to the decline in corporate profit margins. This indicates that businesses are absorbing some of the impact from tariffs rather than passing on all costs to the Consumer.
On Thursday, the USA Bureau of Labor Statistics reported that the PPI for April decreased by 0.5% month-on-month, marking the largest decline in five years, with expectations of a 0.2% increase, and the previous value revised from -0.4% to 0%. The core PPI decreased by 0.4% month-on-month, with expectations of a 0.3% increase, and the previous value revised from -0.1% to 0.4%.
The unexpected decline in the PPI month-on-month is mainly due to slipping profit margins, indicating that businesses have absorbed some of the impact of rising tariffs.
In April, the USA's PPI rose by 2.4% year-on-year, better than the expected 2.5%, while the previous value was 2.7%. The core PPI year-on-year was stable at 3.1%, slightly slowing down from the previous value of 3.3%.
Businesses are in a pricing dilemma.
Data indicate that USA manufacturers and service providers are currently avoiding passing higher US import tariffs onto downstream consumers. Although producers are feeling the impact of aggressive tariffs on imported materials and other inputs, the effect on consumers remains moderate.
Business leaders are struggling to minimize the impact of higher tariffs in a rapidly changing policy environment. The latest business inflation expectations survey from the Atlanta Federal Reserve shows that fewer than one in five businesses reported being able to fully pass on a 10% rise in costs.
Some businesses have been absorbing part of the additional costs to avoid a drop in demand during a time when consumers are already uneasy about the economy. Consumer confidence has declined, and another report released on Thursday showed that retail sales had nearly no growth.
Auto manufacturer Stellantis NV is offering discounts on its vehicles, while Hyundai Motor Company is keeping prices stable until June. These pricing actions indicate that some of the largest auto manufacturers are trying to alleviate concerns that tariffs on imported cars will cause prices to rise by thousands of dollars.
At the same time, Other Retailers expect shoppers to experience higher prices. Walmart warned that tariffs and an increasingly turbulent economic environment mean that the retailer anticipates raising some prices starting this month, after delivering a quarter of strong sales and revenue growth.
For companies that are raising prices, the risk is a potential decline in sales. However, not doing so poses risks to profit margins. Many companies are also seeking other ways to cut costs or are working to improve productivity.
Food and Energy costs continue to decline.
The PPI report shows that in April, Prices for Commodities excluding food and energy rose 0.4% month-over-month, food prices fell for the second consecutive month, egg costs dropped over 39%, and energy costs decreased for the third straight month.
Prices for final demand services decreased by 0.7%, marking the largest decline since data became available in 2009. More than 40% of the decrease was attributed to declining wholesale profit margins for Machinery and vehicles.
Some components of the PPI are used to calculate the Fed's preferred inflation indicator, the PCE price index. These categories largely weakened due to portfolio management and declining airfare prices: however, the Medical Care category increased.
