BLS DAILY REPORT, MONDAY, SEPTEMBER 15, 1997 Seven consecutive monthly decreases in wholesale prices, the longest such string since the government began tracking these costs in 1947, finally come to an end. Rising energy costs in August boosted the PPI for Finished Goods by a seasonally adjusted 0.3 percent, BLS reports. Even with the August upturn, PPI finished goods prices have fallen 0.2 percent since August 1996. And this low inflation rate has coexisted with real GDP growing at an annual rate of 4.9 percent in the first quarter of 1997 and a 3.6 percent rate in the second. Analysts had anticipated that energy prices would spike in August, so economists and financial markets greeted the news calmly ....(Daily Labor Report, page D-1). The pace of increase in retail sales eased in August, reflecting slower growth in auto purchases and a decline in food store sales, according to the Census Bureau ....(Daily Labor Report, page D-11). The U.S. economy continued to hum along last month as consumers stepped up their spending at the nation's retail outlets, particularly at auto dealers, while inflation remained under tight control ....(Washington Post, Sept. 13, page H1)_____Retail sales rose in August, and producer prices increased for the first time this year. But the reports were generally in line with expectations and did little to alter perceptions that the economy continued to advance with prices in check ....(New York Times, Sept. 13, page 27)_____Wholesale prices crept up 0.3 percent in August, after falling seven months in a row. Meanwhile, retail sales rose just 0.4 percent after shooting up 0.9 percent in July. The data helped ease fears that the economy is gaining too much steam ....(Wall Street Journal, page A2). Business analysts expect the U.S. economy to grow 3.4 percent in 1998, with low inflation and unemployment around 5 percent, according to a quarterly forecast by the National Association of Business Economists ....(Daily Labor Report, page A-7). After nearly two decades in which the wage gap between men and women was steadily narrowing, it is now widening again, piquing confusion and concern among economists and women's groups alike, says a New York Times article. According to BLS, the median weekly earnings of full-time working women are just under 75 percent of the men's median, down from 77 percent four years ago ....While some labor economists suggest tentatively that the gender gap may have something to do with welfare reform unleashing a flood of unskilled women on the job market, most warn that it is far too soon to say with any certainty just what, if anything, the earnings data portend .... Federal Reserve Chairman Alan Greenspan said continued economic growth of the United States depends on its ability to develop and apply new technology and to improve the skills and education of its workforce, speaking at the University of North Caroline-Chapel Hill ....(Daily Labor Report, page A-8). The White House announced President Clinton's intent to nominate Katharine G. Abraham to serve a second term as Commissioner of Labor Statistics .... DUE OUT TOMORROW: Consumer Price Index -- August 1997 Real Earnings: August 1997
