The US producer price index unexpectedly decreased, reflecting a decline in profit margins.

In April, the producer prices in the United States unexpectedly decreased by the largest amount in five years, mainly reflecting a decrease in profit margins and indicating that businesses are absorbing some of the impact from the increased tariffs. Data released by the U.S. Bureau of Labor Statistics on Thursday showed that the Producer Price Index declined by 0.5%, while it remained flat in March. The median estimate from a Bloomberg survey of economists was for an increase of 0.2%. Excluding food and energy, the PPI decreased by 0.4%.