Margin Pressure
Macro
PPI suggests a bit of relief in margins
PPI Intermediate
- Stage 4: Downstream
- Stage 2: Upstream
The difference is a DECENT proxy for margins; really, this is a better proxy for change in the price component of margins. I have other posts that detail the math.
On the “margin”, we’re seeing a bit of easing in the pressures we’ve seen for the last few years. Granted, overall profit growth has been solid, so there is clearly more at play that only the relative price of inputs and outputs.