September 1997 U.S. Import and Export Price Indexes

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

-SEPTEMBER 1997-

The U.S. Import Price Index fell 0.1 percent in September, the Bureau of Labor Statistics of the U.S. Department of Labor reported. The decrease was the same as the decline in August and marked the fourth consecutive monthly decline for the index. The Export Price Index decreased 0.4 percent in September after rising 0.1 percent in the previous month.

Import Goods

Import prices, down 3.5 percent over the past 12 months, declined in September, the eighth drop in the first nine months of 1997. The September decrease was due to declines in both petroleum and nonpetroleum import prices. For the second consecutive month, nonpetroleum prices led the decline, falling 0.2 percent in September, the same as in the previous two months. For the September 1996-97 period, nonpetroleum import prices fell 2.3 percent. The petroleum index also fell in September, dipping 0.1 percent after rising 2.5 percent in August. For the year ended in September, the petroleum index decreased 15.0 percent.

The decrease in nonpetroleum import prices was again led by falling capital goods prices, which dropped 0.5 percent in September after 0.8 and 0.4 percent declines in August and July, respectively. Capital goods prices, which have increased in only two months since November 1995, were down 6.7 percent for the year ended in September. In addition, prices for imported consumer goods excluding automotives fell 0.2 percent for the second consecutive month. For the year ended in September, the index dropped 1.2 percent.

In contrast, the price index for imported foods, feeds, and beverages posted an upturn in September, rising 0.9 percent after decreasing in the previous two months. Import prices for both industrial supplies and materials excluding petroleum and for automotive vehicles, parts, and engines each edged up 0.1 percent last month and were up just 0.1 percent and 0.2 percent over the past year, respectively.

Export Goods

Export prices declined last month for the fourth time in the past five months. The index for nonagricultural exports had the largest impact, falling 0.4 percent in September. The decrease in nonagricultural export prices was only the second posted since August 1996 and was the largest single month drop since August 1995. The index for agricultural export prices also fell in September, down 0.1 percent, partially reversing the gain of 0.2 percent in August.

The index for capital goods, which accounts for about 44 percent of the overall export index, dropped 0.6 percent in September. Prices for exported nonagricultural industrial supplies and materials also fell in September, down 0.4 percent after decreasing 0.3 percent in the prior month. The decrease was led by downturns for paper, chemical, and lumber prices.

Export prices for consumer goods and for automotive vehicles were relatively stable for the second consecutive month after both had increased 0.2 percent in July. In both September and August, the index for automotive vehicles, parts, and engines fell a modest 0.1 percent, while the index for consumer goods edged up 0.1 percent.

Imports by Locality of Origin

The price index for imports from Japan fell 0.2 percent in September after decreasing 0.3 percent in the previous month. (See table 7.) For the September 1996-1997 period, the index fell 4.7 percent.

Import prices from the European Union fell 0.4 percent on average in September, after edging up 0.1 percent in August. Over the past 12 months, the index was down 2.4 percent.

Prices for imports from the Asian Newly Industrialized Countries also resumed a downward trend in September, falling 0.8 percent after recording no change in the previous month. The September decrease was the largest decline posted for this index since monthly publication began in 1993. For the year, the index fell 3.8 percent.

In contrast, the price index for imports from Canada rose for the second consecutive month, up 0.3 percent and 0.2 percent in September and August, respectively. Over the past 12 months, however, the index fell 0.8 percent.

Import and Export Services

The Import Air Freight Index decreased 2.0 percent from June to September. The quarterly decline was primarily attributable to a decrease of 4.3 percent in the Atlantic region. The Export Air Freight Index continued to move downward with a 1.2 percent decrease this quarter.

The Import Air Passenger Fares Index edged down 1.9 percent during the third quarter, partially reversing the gains recorded for the previous two quarters. The Pacific region led this decrease with a drop of 9.8 percent. The Export Air Passenger Fares Index fell 2.9 percent this quarter. The decline was primarily attributable to a 5.2 percent decline in the Pacific region.

The Import Ocean Liner Freight Index declined for the sixth consecutive quarter, falling 1.9 percent. Both the U.S. East Coast and U.S. West Coast indexes contributed to the decline with decreases of 2.3 percent and 1.6 percent, respectively.