September Data Shows Cooling Core Inflation and Mixed Retail Sales
Core wholesale prices rose less than expected in September, signaling some easing in underlying inflation pressures. Overall producer prices increased 0.3%, but core PPI rose just 0.1% amid a sharp jump in goods and energy costs. Services prices remained flat, while gasoline and other energy components drove the largest goods-price increase since early 2024. Retail sales fell slightly below expectations, though discretionary spending and several key categories showed solid year-over-year growth.
ADP Data Points to Weakening Labor Market Ahead of Key Fed Meeting
New ADP figures show the labor market losing momentum, with private companies shedding an average of 13,500 jobs per week over the past month. The ongoing government shutdown has limited official data releases, leaving policymakers to rely more heavily on alternative indicators. Fed officials are scheduled to meet Dec. 9–10 with little incoming data, though many have signaled support for further rate cuts.
Mortgage Activity Flat as Rates Hold Steady, but Purchase Demand Ticks Higher
Mortgage rates have stayed within a narrow range for two months, leaving overall application volume nearly unchanged last week. The average 30-year fixed rate rose slightly to 6.40%, its highest level since early October, but still lower than a year ago. Purchase applications increased by 8% for the week—driven largely by government-backed loan programs—while refinance applications decreased by 6%, remaining sharply higher than last year’s unusually low levels.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
