Under the Hood of U.S. Import Prices Are Cheaper Capital Goods

(Bloomberg) -- Here’s one key takeaway from the Labor Department’s report Tuesday on U.S. import prices in November:

The cost of capital goods made overseas dropped 0.2 percent, matching an October decline as the largest since July 2015 and underscoring sluggish demand for productivity-enhancing equipment.

* Monthly decrease reflected a 0.4 percent decrease in prices of computers, peripherals and semiconductors * Prices of imported capital goods fell 1.6 percent from November 2015 * Index of all imports dropped 0.3 percent in November, the biggest drop since February, led by cheaper fuel * Prices of imported consumer goods excluding autos fell 0.1 percent last month, dropped 0.6 percent from year earlier