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The current stabilization, with growth rates returning to low positive figures, suggests continued normalization rather than the beginning of a new inflationary cycle.

Today’s data update takes a closer look at the manufacturing data within the most recent Employment Situation release.

The November data continues to show broad-based normalization and slowing, with a few sectors in particular trouble.

The November 2024 Producer Price Index data continue to show normalizing input cost growth for the economy as a whole, as well as most individual sectors.

In this month’s report, we saw contraction in the overall aggregate, with a decline of 0.3% month-over-month for a year-over-year decline of 0.3%.

Overall input cost inflation has been accelerating again in recent months, driven almost entirely by increases on the Services side.

The index of Total Industrial Production fell by 0.3% month over month in the September data, for a 0.6% year over year decline.

PPI for All Commodities fell by 1.2% month over month in the September data, for a 2.5% year over year fall.

In the August data release, domestic industrial production rebounded from an idiosyncratically weak July report.