The Commerce Department reports import prices rose 0.4% in January after a revised 0.5% gain in December. January’s rise was the third in four months. Over the past 12 months import prices are up 3.7%, the highest level since 2012 mostly because of higher oil prices. If oil is left out, the cost of imported goods actually fell 0.2% in January. And they are flat over the past year. That suggests prices are still not rising very quickly for most goods.
The University of Michigan’s Prelimnary Consumer Sentiment Survey fell to 95.7 down from 98.5 in January. Economists expected 98. Opinions about current conditions stayed the same but expectations about the next six months fell to 85.7 from 90.3. About six in 10 consumers polled made either positive or negative references to some government action by the Trump administration, an unusually high level. About half the responses were favorable and half were unfavorable. Expectations for the next six months among Democrats were near a historic low while expectations among Republicans was near a record high.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
