Consumer Price Index edges up in May
The Consumer Price Index rose 0.4 percent in May, on a seasonally adjusted basis, the U.S. Department of Labor announced on Thursday. That followed 0.6 percent rise in April.
Energy costs continued their advance in May, rising 2.4 percent overall, as petroleum-based energy increased 4.8 percent and energy services declined 0.6 percent.
The food index increased 0.1 percent in May.
The index for all other items, excluding food and energy, rose 0.3 percent in May– the same as in April and March. Shelter again accounted for more than half its monthly advance.
The CPI is based on prices of food, clothing, shelter, transportation and other goods and services for day-to-day living. The full report, including non-seasonally-adjusted figures, is available online at www.bls.gov, the Web site of the Labor Department’s Bureau of Labor Statistics.
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CEO confidence declines in 2nd quarter
Confidence among U.S. corporate leaders declined in the quarter that ended June 30, The Conference Board reports.
In its latest quarterly survey of about 100 business leaders nationwide, the board said yesterday, its Chief Executives’ Confidence Measure was only 50 points. In the first quarter, the measure had edged up to 57.
(The measure is calculated on a 100-point scale, where 50 is neutral. Higher numbers indicate the survey received more positive responses than negative ones.)
Only 27 percent of CEOs said conditions were better than six months ago, down from 49 percent in the first quarter. In their own industries, about 40 percent said conditions were better, down from 52 percent in the preceding quarter.
Their view of the future was grim, as well. Only 21 percent expect economic conditions to improve in the next half year, down from 35 percent in the first quarter. In their own industries, 31 percent expect an improvement, down from last quarter’s 35 percent.
Profit expectations for the next year were more positive, with 75 percent expecting increases. Those expectations varied widely by industry, however, from 80 percent among those in non-durable goods and 79 percent in the durable goods industry expecting a rise in profits to only 66 percent of those in the service industry.
Among CEOs who expect profit growth, 52 percent credit increased demand, 26 percent cost reductions, 16 percent say price increases and 6 percent say technology will drive the increase.
The Conference Board, a nonprofit, nonpartisan business membership and research association, produces a wide range of reports, including the U.S. Consumer Confidence Index and Leading Economic Indicators.
