Afternoon Coffee: Producer Prices Fall, Big 3 Automakers Turn to Mexico for Small Car Production

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The U.S. producer prices index fell 0.4% in October from the month prior and 1.6% from October 2014, marking the largest annual decline since 2009. The index measures the prices companies receive for goods and services.

General Motors, Ford and Fiat Chrysler are ramping up production of small cars in Mexico in an effort to reduce labor costs. Automotive research firms are now predicting the three U.S. carmakers will collectively produce up to 45% of their small cars in Mexico by 2020.

Following reports last week it handled fewer imports in October, the Port of Oakland is moving ahead on building a 170-acre logistics hub. The project, called the Seaport Logistics Complex, would make Oakland home to the largest logistics complex on the West Coast.  

U.S. retail sales rose 0.1% in October, less than expected and a sign of possible slower economic  growth in the fourth quarter.

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