U.S. FIG Jumps July 5, 2002
NEW YORK, July 5 (Reuters) - As the nation's manufacturing sector continues to emerge in June from a year-and-a-half-long slump, rising industrial commodities prices fueled a sharp increase in inflationary pressures, a report showed on Friday. The Economic Cycle Research Institute's Future Inflation Gauge jumped to 101.7 last month from 99.1 in May, ECRI said. After peaking at 124.7 in April 2000, the inflation index dropped sharply as the economic downturn took hold. A greater portion of purchasing managers reported slower deliveries in June, which also signaled rising inflation. The index's rise was partly offset by slower job growth last month, ECRI said. "The rise in the (inflation index) was driven by the biggest six-month spurt in the growth rate of (industrial prices) since 1973, reflecting the prospects for the global industrial revival," the report said. "As a result, the rise in U.S. inflationary pressures is beginning to accelerate." The annualized growth rate, which smooths out monthly fluctuations, soared to 5.5 percent in June from -0.4 percent in May.
