Producer Price Index News Release text
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http://stats.bls.gov/ppihome.htm AUGUST 11, 2000
Producer Price Indexes -- July 2000
The Producer Price Index for Finished Goods showed no change in July,
seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department
of Labor reported today. This index posted a 0.6-percent advance in June
and showed no change in May. The index for finished goods other than foods
and energy edged up 0.1 percent in July, after falling 0.1 percent a month
ago. Prices received by manufacturers of intermediate goods registered a
0.2-percent gain, following a 0.9-percent advance a month earlier. The
crude goods index decreased 1.1 percent, after rising 5.8 percent in June.
(See table A.)
Table A. Monthly and annual percent changes in selected stage-of-
processing price indexes, seasonally adjusted
Finished
goods
Change in
Except finished Inter-
goods
foods from 12 mediate Crude
and months
Month Total Foods Energy energy ago goods goods
(unadj.)
1999
July 0.2 -0.4 2.7 -0.1 1.5 0.7 0.2
Aug. .6 .5 3.3 .1 2.3 .5 5.1
Sept. .8 .7 2.1 .6 3.1 .5 4.6
Oct. 0 -.3 -.4 .2 2.8 .2 -2.4
Nov. .1 -.2 1.1 -.1 3.1 .2 5.2
Dec. .1 0 .7 .1 2.9 .3 -4.9
2000
Jan. .1 .2 .9 -.2 2.5 .5 2.6
Feb. 1.1 .5 5.3 .3 4.0 .9 3.9
Mar. r.7 .1 r4.4 .1 r4.3 .9 r2.2
Apr. r-.1 1.0 r-3.0 r.2 3.9 -.1 r-2.1
May 0 -.2 -.5 .2 3.9 -.1 3.2
June .6 -.3 5.1 -.1 4.3 .9 5.8
July 0 0 -.7 .1 4.1 .2 -1.1
r=revised. Some of the figures shown above and elsewhere in
this release may differ from those previously reported
because data for March 2000 have been revised to reflect the
availability of late reports and corrections by respondents.
-2-
Prices for finished energy goods turned down 0.7 percent, after rising
5.1 percent in the previous month, and caused July's deceleration in the
finished goods index. By contrast, the index for consumer goods other than
foods and energy edged up, following a small decline in June. Finished
consumer food prices showed no changed in July, after falling 0.3 percent
in the prior month. The capital equipment index rose, following no change
a month ago.
Before seasonal adjustment, the Producer Price Index for Finished
Goods fell 0.1 percent in July to stand at 138.3 (1982=100). From July
1999 to July 2000, a 19.2-percent advance in prices for finished energy
goods led the 4.1-percent increase for the finished goods index. During
the same period, prices for finished goods other than foods and energy rose
1.5 percent, and prices for finished consumer foods increased 2.1 percent.
Prices received by manufacturers of intermediate goods rose 5.0 percent for
the 12 months ended in July, and the index for crude goods advanced 23.4
percent for the same period.
Finished goods
The finished energy goods index fell 0.7 percent in July, after
posting a 5.1-percent gain in June. Most of the deceleration in prices for
finished energy goods can be attributed to a downturn in the gasoline
index, which decreased 9.1 percent following an 11.8-percent advance last
month. Prices for liquefied petroleum gas rose less than in June. The
index for home heating oil turned down, after rising in the prior month.
By contrast, prices for residential electric power turned up 2.0 percent in
July, following a 0.7-percent decline in June. The index for residential
natural gas rose at a faster rate than a month ago.
Table B. Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted
Intermediate Crude goods
goods
Change in
intermedi
ate Change in
Exclud goods crude goods
ing from Excluding from
foods 12 months Energy foods 12 months
and ago and ago
Month Foods Energy energy (unadj.) Foods (unadj.) energy (unadj.)
1999
July -1.0 2.8 0.5 0.3 -3.9 4.3 1.4 -0.2
Aug. 1.3 2.5 .2 1.1 3.6 8.6 1.9 9.3
Sept. 1.0 1.9 .1 2.0 1.3 9.3 1.8 16.5
Oct. .8 -.8 .2 2.2 .1 -7.0 2.4 10.6
Nov. -.6 1.8 .1 2.8 1.0 11.5 1.0 16.7
Dec. -1.9 1.4 .1 3.7 -2.0 -11.1 2.5 15.3
2000
Jan. .1 1.8 .4 4.1 .7 4.7 2.3 17.4
Feb. .5 4.3 .3 5.4 .6 8.9 .6 25.1
Mar. r1.0 r3.6 r.4 r5.9 r3.6 r2.3 -.5 r26.9
Apr. r.6 r-2.2 r.3 5.3 r1.6 r-6.0 r-1.1 21.4
May .7 -1.4 .1 5.0 -1.8 9.9 -.3 18.5
June .4 4.7 .2 5.4 -2.6 16.2 -1.3 25.2
July -.7 .5 .2 5.0 -2.7 .4 -1.8 23.4
r=revised. Some of the figures shown above and elsewhere in this release
may differ from those previously reported because data for March 2000
have been revised to reflect the availability of late reports and
corrections by respondents.
-3-
The index for finished consumer goods other than foods and energy
posted a 0.1-percent gain in July, after declining at the same rate in
June. Prices for cigarettes showed no change, following a 1.8-percent
decrease in the prior month. The rate of decline in prices for sanitary
papers and health products slowed from June to July. The indexes for
alcoholic beverages, book publishing, men's and boys' apparel, and
household appliances increased, after falling in the previous month. The
prescription drugs index rose more than a month earlier. On the other
hand, prices for light motor trucks edged down 0.1 percent in July,
following a 0.3-percent gain in June. The indexes for home electronic
equipment, mobile homes, and cosmetics and other toilet preparations also
turned down, after rising a month ago. Prices for girls', children's, and
infants' apparel showed no change, following a 1.2-percent advance in June.
The index for finished consumer foods was unchanged in July, after
posting a 0.3-percent decrease in June. In July, price increases for dairy
products, pork, bakery products, and for finfish and shellfish offset
falling prices for eggs for fresh use, beef and veal, processed young
chickens, and soft drinks.
The capital equipment index edged up 0.1 percent in July, after
showing no change in the prior month. Rising prices for civilian aircraft,
office and store machines and equipment, truck trailers, and industrial
material handling equipment slightly outweighed falling prices for
passenger cars, communication and related equipment, heavy motor trucks,
and light motor trucks.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and
Components rose 0.2 percent, after advancing 0.9 percent in June. Most of
this deceleration can be attributed to prices for intermediate energy
goods, which increased 0.5 percent in July and 4.7 percent in June. Prices
for intermediate foods and feeds turned down, after rising in the previous
month. The index for materials and components for construction fell more
than a month ago. By contrast, prices for nondurable manufacturing
materials advanced 0.9 percent, following a 0.6-percent increase a month
earlier. The index for durable manufacturing materials rose, after falling
in June. Marking the seventeenth consecutive increase, the index for
intermediate materials other than foods and energy advanced 0.2 percent in
July. (See table B.)
Prices for intermediate energy goods rose 0.5 percent in July, after
advancing 4.7-percent in June. Rising prices for industrial electric
power, commercial natural gas, jet fuels, industrial natural gas,
commercial electric power, diesel fuel, and residual fuel outweighed
falling prices for gasoline.
The intermediate foods and feeds index turned down 0.7 percent in
July, after registering a 0.4-percent gain in June. The index for prepared
animal feeds fell 1.7 percent, following a 0.7-percent increase in the
prior month. Prices for flour and for beef and veal also turned down,
after rising in the previous month. The crude vegetable oils index fell
more than a month earlier. Conversely, prices for fluid milk products
advanced 1.6 percent, after edging up 0.1 percent a month ago. The
indexes for pork and for natural, processed, and imitation cheese also rose
more than in the prior month.
The index for materials and components for construction decreased 0.3
percent in July, after a 0.1-percent decline in June. Softwood lumber
prices fell 3.3 percent, following a 0.8-percent drop in the prior month.
The indexes for plastic construction products, heating equipment, and for
air conditioning and refrigeration equipment turned down, after rising in
the previous month. Prices for asphalt felts and coatings rose less than a
month ago. By contrast, the index for wiring devices rose 0.2 percent,
after falling 0.3 percent a month earlier. Prices for fabricated
structural metal products, nonferrous wire and cable, and plywood fell less
than in the prior month.
-4-
Prices for nondurable manufacturing materials increased 0.9 percent in
July, after posting a 0.6-percent rise in June. The industrial chemicals
index advanced 2.5 percent, following a 0.9-percent gain in the prior
month. Prices for gray fabrics, phosphates, and for processed yarns and
threads turned up, after falling in the previous month. On the other hand,
the plastic resins and materials index turned down 0.3 percent, following a
0.8-percent gain a month ago. Prices for medicinal and botanical chemicals
and inedible fats and oils also fell, after rising a month earlier.
Paperboard prices rose less than in the prior month.
The durable manufacturing materials index increased 0.1 percent in
July, after falling 0.2 percent in June. Prices for aluminum, except
extrusion billet, gained 2.9 percent, following a 1.1-percent rise in the
previous month. The indexes for aluminum mill shapes, copper and brass
mill shapes, and for cold rolled sheet and strip rose, after falling a
month ago. Flat glass prices rose more than in the prior month. By
contrast, the hot rolled sheet and strip index dropped 0.8 percent,
following a 0.3-percent decline a month earlier. Prices for gold and
platinum turned down, after rising in June. The silver index fell, after
showing no change in the previous month.
Crude goods
The Producer Price Index for Crude Materials for Further Processing
declined 1.1 percent in July, after posting a 5.8-percent advance in June.
A slower rate of increase for crude energy materials accounted for nearly
all of the downturn in the crude goods index. Prices for basic industrial
materials and for crude foodstuffs and feedstuffs fell slightly more than
in the prior month. (See table B.)
The index for crude energy materials edged up 0.4 percent in July,
after registering a 16.2-percent increase in June. Crude petroleum prices
fell 7.2 percent, following a 13.8-percent jump in the previous month. The
natural gas index rose 6.4 percent, after gaining 23.9 percent a month ago.
By contrast, coal prices advanced 0.6 percent, following a 1.6-percent
decline a month earlier.
The index for basic industrial materials decreased 1.8 percent in
July, after posting a 1.3-percent drop in the prior month. Following a
June decline of 1.4 percent, wastepaper prices fell 12.3 percent in July,
the largest decline since a 13.3-percent drop in April 1996. The index for
softwood logs, bolts, and timber also decreased more than in the previous
month. Prices for gold and copper ores turned down, after rising in the
previous month. On the other hand, prices for aluminum base scrap advanced
4.1 percent in July, after showing no change in June. The indexes for raw
cotton and for iron and steel scrap fell less than a month earlier. Prices
for cattle hides, hardwood logs, pulpwood logs, and phosphates turned up,
after decreasing a month ago.
The index for crude foodstuffs and feedstuffs declined 2.7 percent in
July, following a 2.6-percent decrease a month earlier. Falling July
prices for corn, soybeans, slaughter cattle, slaughter broilers and fryers,
and Irish potatoes for processing outweighed rising prices for fluid milk,
slaughter hogs, and unprocessed finfish.
-5-
Net output price indexes for mining, manufacturing, and services industries
Mining. The Producer Price Index for the Net Output of Total Domestic
Mining Industries advanced 0.9 percent in July, after registering a 13.8-
percent gain in June. (Net output price indexes are not seasonally
adjusted.) Leading the deceleration among mining industries, the index for
the crude petroleum, natural gas, and natural gas liquids industry
increased 1.0 percent, following a 19.0-percent rise a month earlier.
Prices received by the gold ores and copper ores industries declined, after
advancing in the prior month. The index for the crushed and broken
limestone industry increased less than a month ago. By contrast, prices
received by the bituminous coal and lignite industry rose 0.5 percent,
following a 1.2-percent drop in June. The indexes for the potash, soda,
and borate minerals industry and for the oil and gas field exploration
services industry also turned up, after falling in the previous month.
Prices received by the oil and gas well drilling industry gained more than
a month earlier. In July, the Producer Price Index for the Net Output of
Total Domestic Mining Industries stood at 114.8 (December 1984=100), 45.9
percent above its year-ago level.
Manufacturing. The Producer Price Index for the Net Output of Total
Domestic Manufacturing Industries decreased 0.3 percent in July, after
posting a 0.4-percent advance in the prior month. Prices received by the
petroleum refining industry declined 5.0 percent, following a 6.4-percent
increase a month ago. The index for the printing, publishing, and allied
industries group rose less than in the previous month. Prices received by
the measuring and controlling instrument industry group showed no change,
after gaining in June. The index for the lumber and wood products (except
furniture) industry group fell more than a month earlier. Conversely,
prices received by the chemicals and allied products industry group
advanced 0.6 percent in July, following a 0.1-percent increase in June.
The index for the food and kindred products industry group rose 0.2
percent, after showing no change in the prior month. Prices received by
the tobacco manufactures industry group and the transportation equipment
industry group were unchanged for July, following decreases a month
earlier. In July, the Producer Price Index for the Net Output of Total
Domestic Manufacturing Industries stood at 133.6 (December 1984=100), 4.1
percent above its year-ago level.
Services. Prices received by general medical and surgical hospitals,
offices of physicians, skilled and intermediate care facilities, hotels and
motels, and operators and lessors of nonresidential buildings increased in
July. By contrast, the indexes for the trucking (except local) industry,
life insurance carriers, travel agencies, and the non-scheduled air
transportation industry decreased this month.
*****
Producer Price Index data for August 2000 will be
released on Thursday, September 14, 2000 at 8:30 a.m. (E.D.T)
-6-
Resampling of Industries
Effective with this release, the Producer Price Index (PPI) includes
data for 13 resampled industries. The Bureau of Labor Statistics
periodically updates the sample of producers providing data for the PPI to
reflect current conditions more accurately when the structure, membership,
technology, or product mix of an industry shifts significantly. The first
results of this systematic process were published in July 1986. Subsequent
efforts have been completed at 6-month intervals. For information on
specific additions, deletions, and recodes of indexes that are effective
this month, see the July 2000 issue of the PPI Detailed Report or contact
the Section of Index Analysis and Public Information at (202) 691-7705.
As part of an ongoing effort to expand coverage to sectors of the
economy other than mining and manufacturing, 7 industries are being
introduced into the PPI for the first time. These new indexes comprise the
food stores and new car dealers portions of retail trade. Indexes for
these industries appear in table 5 of the PPI Detailed Report. (Table 5
also includes data for SIC 5451 Dairy Products Stores in an aggregate index
for SIC 54 Food Stores.) For further discussion of these new indexes, see
"Retail trade industries in the PPI" in the July 2000 issue of the PPI
Detailed Report or call the Section of Index Analysis and Public
Information at (202) 691-7705.
Standard
Industrial
Classification
(SIC) Code Industry
1081 Metal mining services
1241 Coal mining services
1481 Non-metallic minerals (except fuels) services
2295 Coated fabrics, not rubberized
2673 Plastics, foil and coated paper bags
2835 In vivo and In vitro diagnostics
2841 Soap and other detergents
2843 Surface-active agents
3677 Electronic coils, transformers, and other inductors
3679 Electronic components, n.e.c.
3694 Electrical equipment for internal combustion engines
4221 Farm product warehousing and storage
4841 Cable and other pay television services
5411 Grocery stores
5421 Meat and fish (seafood) markets
5431 Fruit and vegetable markets
5441 Candy, nut, and confectionery stores
5461 Retail bakeries
5499 Miscellaneous food stores
5511 New car dealers
Bureau of Labor Statistics
ppi-info@bls.gov
Last modified: Friday, August 11, 2000
URL: /news.release/ppi.nr0.htm
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Producer Price Indexes