US import prices increase; post largest annual gain in more than four years
SPY•US import prices rose 1.1% in September, above economists’ 0.8% forecast, and were up 8.1% year over year, the largest annual gain since July 2022. Factory production increased 0.3% but grew at a 0.7% annualized rate in the third quarter.
1. Import prices rise
Import prices rose 1.1% in September after a downwardly revised 0.5% increase in August. Fuel prices rebounded 4.8%, while prices excluding food and fuel advanced 0.7%; import prices were up 8.1% from a year earlier. Prices of imports from China rose 0.7%, the most since December 2021.
2. Factory growth slows
Factory production increased 0.3% in September after falling 0.2% in August, but expanded at a 0.7% annualized rate in the third quarter, down from 5.6% in the second quarter. Semiconductor and related electronic component output surged 28.4% last quarter, while motor vehicle and parts production fell 3.0% in September.
