PPI release.

Discussion in 'Economics' started by fbbi0, Mar 13, 2004.

  1. fbbi0

    fbbi0

    U.S. Labor Dep't cites big strides on delayed PPI
    Fri Mar 12, 2004 03:44 PM ET

    "The wholesale price data had originally been scheduled for release on Feb. 19, over three weeks ago, but was postponed indefinitely when BLS ran into trouble converting the data to a new industrial classification system.

    BLS was also forced to postpone the report for February, which was to have been released earlier on Friday.

    Irwin Gerduk, an assistant commissioner at BLS, has said outdated computers were partly to blame for the delay. He told Reuters earlier this week it would take "quite a bit of time" to produce the February report even after the calculation problems for January were solved."
    http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=4558945

    http://research.stlouisfed.org/fred2/categories/31


    Last time we had a reclassification - reformulation revision, it was published February 9th 2001 and it was effective for the Jan 2001 numbers. It was done in a timely manner.

    A brief examination of changes due to the revision (2001)
    In the following a brief examination of the main areas in the revision is done. The areas are:
    Classification
    Weights
    Method of calculation
    Questions
    http://www.ssb.no/ppi_en/revision.html

    Does anyone know what changes/recalculations are taking effect this time? And why does it take so long?

    I find Irwin's response "Irwin Gerduk, an assistant commissioner at BLS, has said outdated computers were partly to blame for the delay" somewhat strange. (outdated computers?)

    I keep hearing opinions from traders and news outlets on the issue of delayed PPI numbers, as higher than expected inflation, data massaging, but it's just talk/rumors.
     
  2. fbbi0: Knowing nothing about "PPI"... may I ask, what significance do these numbers have on the USD? What significance does this delay indicate?

    Best regards,

    Sam
     
  3. fbbi0

    fbbi0

    originalskunk, thanks for the link.

    gamalruach, higher PPI numbers would indicate inflation pressures and may lead to interest rate hikes. Higher rates, may support dollars strength all else being equal.


    I would like to see what the numbers would have been with the existing formulas, and compare them with the new reformulated results. Market behavior so far has been partially effected by the existing PPI formulas and calculations.

    If someone here has the existing formula and data ( Jan and Feb are now available somewhere), please calculate, post the number(s). Do the economists, large investment houses have that info available?
     
  4. fbbi0

    fbbi0

    According to Briefing.com, the next scheduled release day was originally set for March 17th, 12:00 am for Jan numbers, 8:30 am for Feb, but it is now listed as TBA (To Be Announced?)
     
  5. EBOAH

    EBOAH

  6. range

    range

    Jesse Eisinger wrote another funny and incisive piece in the WSJ this morning. One paragraph exerpted below:

    AHEAD OF THE TAPE
    By JESSE EISINGER
    Core Constituency
    March 17, 2004; Page C1

    .......

    Prices to businesses, however -- at least those measured by the producer-price inflation -- would appear to be rising strongly. Commodity and raw-material prices, such as steel, have been skyrocketing. The PPI data, one would think, would show big jumps -- but they aren't. This is because the government has yet to issue the numbers. The PPI data have been delayed for two months, as the Bureau of Labor Statistics struggles with a facelift and tummy-tuck to the numbers.

    .......
     
  7. josbarr

    josbarr