News November 20, 2023
Stat Spotlight: Inflation Eases, Economy Grows
These quick-hit statistics paint a picture of what’s going on with key macroeconomic factors that have the ability to impact the promo industry.
In June 2022, the Consumer Price Index (CPI) – an important inflation gauge that measures prices U.S. consumers pay – increased at an eye-popping 9.1% annual rate.
In October 2023, the CPI annual rate rise was 3.2% – still above the Federal Reserve’s target range of 2%, but a vast improvement over the pandemic-era high last summer, showing progress has been made on taming price acceleration.
Meanwhile, the Producer Price Index (PPI) – which essentially focuses on wholesale prices – posted its largest decline in 3½ years in October, another good sign in the fight against inflation.
The statistics below tell the fuller story on the current state of inflation and offer insights into other pivotal macroeconomic factors that have the potential to impact the promotional products market, including overall economic growth, unemployment, and consumer spending.
Stats
0.5%
The Producer Price Index declined by 0.5% in October 2023 compared to September 2023, the biggest decline in 3½ years.(U.S. Bureau of Labor Statistics)
1.3%
Increase in the Producer Price Index in October 2023 compared to October 2022. That’s in the Federal Reserve’s target 2% annual inflation rate range. It was also a slower annual increase than September’s 2.2%.(U.S. Bureau of Labor Statistics)
3.2%
Year-over-year increase in the Consumer Price Index in October 2023 measured against the same month the prior year. That was better than September, when the annual rate rise was 3.7%.(U.S. Bureau of Labor Statistics)
4%
Annual increase in the Core Consumer Price Index, a reading that removes volatile food and energy prices. It’s the smallest 12-month change since September 2021.(U.S. Bureau of Labor Statistics)
4.9%
The year-over-year rate of growth in the United States’ Gross Domestic Product (GDP) in the third quarter of 2023.(U.S. Bureau of Economic Analysis)
4.8%
Year-over-year increase in U.S. consumer spending on goods in the third quarter of 2023.(U.S. Bureau of Economic Analysis)
3.6%
Annual rise in U.S. consumer spending on services in Q3 2023.(U.S. Bureau of Economic Analysis)
150,000
Number of jobs the U.S. economy added in October 2023. The showing would have been better if not for the autoworker strikes. While down from September, the hiring number “was solid enough to suggest that many companies still want to hire and that the economy remains sturdy,” the Associated Press reported.(U.S. Department of Labor)
3.9%
Current U.S. unemployment rate.(U.S. Department of Labor)
2.5%
Rise in U.S. retail and food services sales in October 2023 compared to October 2022.(U.S. Census Bureau)