Led by big declines in auto and gasoline costs, producer prices fell 1.6% in October, tying the record decline set in October 2001, the Labor Department reported November 14. Core producer prices -- excluding energy and food -- fell 0.9%, the largest retreat in 13 years. Economists expected producer prices to fall 0.5% and the core rate to rise 0.1%.
Consumer prices fell a bigger-than-expected 0.5% in October, following a similar decline in September. Analysts had predicted a 0.3% decrease. Core consumer prices -- minus energy and food -- rose 0.1%, the slowest pace in eight months. The Consumer Price Index is up 1.3% in the past year, the slowest rate of inflation since June 2002.
Retail sales slid 0.2% in October, largely due to plunging prices at the gasoline pump, the Commerce Department said November 14. Excluding gasoline sales, retail sales would have been up 0.4% in October.
Construction of new, single-family homes and apartments fell 14.6% in October to an annual rate of 1.486 million units, the lowest level in more than six years, the Commerce Department reported November 17. Applications for new building permits declined 6.3% to a seasonally adjusted rate of 1.535 million, the lowest level in nine years.
Sparked by falling interest rates, mortgage applications increased 4.3% in the week ending November 10, the best showing since January of this year, the Mortgage Bankers Association reported November 15.
Initial jobless claims decreased by 2,000 in the week ending November 11, suggesting the labor market remains favorable, the Labor Department said November 16.
This week look for updates on leading economic indicators on November 20.
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