COLUMBUS, Wis., July 17, 2025 (GLOBE NEWSWIRE) -- The Producer Price Index (PPI) data released on July 16 by the Bureau of Labor Statistics highlights a continued cooling in inflationary pressures across the U.S. economy, particularly in the service sector. Michael Eisenga, CEO of First American Properties LLC, issued the following statement in response to the report:
“The latest PPI data provides further evidence that inflation remains contained, despite widespread fears of tariff-induced price pressures. Service costs fell 0.1% in the past month, with over half of that decline attributed to a steep 4.1% drop in traveler accommodation services. Airline passenger services also declined 2.7%—the sharpest monthly decrease since May 2024. These are not minor fluctuations; they point to softening demand in key consumer-facing sectors.”
The report also notes that wholesale prices overall remained flat in June, following an upwardly revised 0.3% gain in May. Over the last 12 months, core PPI (excluding food, energy, and trade services) increased just 2.5%, marking the smallest annual rise since late 2023. Total U.S. wholesale prices rose 2.3% from a year earlier, the lowest reading since September 2024.
“The fearmongering around runaway inflation due to tariffs simply isn’t supported by the data,” Eisenga continued. “Producer price increases remain subdued even as manufacturing shows modest strength. The manufacturing capacity utilization rate edged up to 76.9%, and factory output excluding autos rose 0.3%, the best reading in three months.”
However, Eisenga emphasized that signs of underlying economic weakness persist and should not be overlooked.
“The most troubling signal comes from the labor market. Nonsupervisory hourly workers are now clocking just 33.5 hours per week—the lowest average since the Great Recession and trending downward. That’s a clear indication of reduced labor demand and likely a signal of a broader economic slowdown.”
In addition, cracks in consumer credit are becoming more apparent. According to Experian, subprime auto delinquencies have surged 40% year-over-year, and even prime borrowers are increasingly falling behind. LendingTree reports that 5.1% of all borrowers are now delinquent on auto loans.
“When even creditworthy borrowers are starting to miss payments, it’s no longer a fringe issue—it’s a systemic one,” Eisenga stated. “These developments point to growing financial strain among American households and a high probability of recession ahead, even in the face of seemingly contained inflation.”
First American Properties LLC continues to monitor economic conditions closely as part of its broader investment and portfolio strategy, with a focus on preserving value and identifying counter-cyclical opportunities in real estate and alternative assets.
Contact:
First American Properties LLC
Michael S. Eisenga, CEO
meisenga@firstamericanusa.com
(608) 350-5754-0199
Michael Eisenga is the Chief Executive Officer of First American Properties LLC, a private real estate investment firm.
