November retail sales came in weaker than expected and rose just 0.1 percent, missing the briefing.com consensus estimate of 0.3 percent, while October retail sales was revised lower to 0.6 percent from 0.8 percent, according to the Department of Commerce.
November retail sales was 3.8 percent higher than November 2015.
Strong retail sales provide investors with a measure of assurance about spending levels in the economy.
Today the Bureau of Labor Statistics (BLS) reported that the producer price index (PPI), a weighted index of prices measured at the wholesale/producer level, rose 0.4 percent in November, beating the 0.1 percent consensus estimate from briefing.com.
Prices for final demand minus foods, energy, and trade services (core PPI) rose 0.2 percent in November after an increase of just 0.1 percent in October.
The final demand index climbed 1.3 percent over the past 12 months ending November 2016, the largest rise since 1.3 percent over the 12 months ending November 2014.
Today’s report shows that over 80 percent of the November advance can be linked to margins for final demand trade services, which rose 1.3 percent.
FED Reserve December Meeting Concludes Today
The Federal Reserve is expected to raise interest rates today with the federal funds at the conclusion of their 2 day December monetary policy meeting.
The Fed is expected to raise the federal funds by 0.25 basis points to .50- .75 percent from its current level of .25- .50 percent which was last raised at the Fed’s policy meeting in December 15′.
According to the CME’s Fed Watcher tool, the probability of a 0.25 basis point increase at today’s meeting currently stands at 97.6 percent.
Fed Committee members at the December meeting will also revise their economic projections and update the Fed dot plot chart.
Fed Chairwoman Janet Yellen will hold a press conference following today’s meeting.