April 1994 Producer Price Index

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.

The Producer Price Index for Finished Goods moved down 0.1 percent seasonally adjusted from March to April, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This decline followed a 0.2 percent rise in March and an advance of 0.5 percent in February. The Intermediate Goods Price Index showed no change in April following a 0.2 percent increase a month earlier. Prices received by domestic producers of crude goods fell 0.5 percent over the month after climbing 2.8 percent in March. (See table A.)

Among finished goods, consumer food prices turned down following a March increase. The index for finished energy goods eased down slightly after remaining unchanged in the preceding month. Prices for finished goods other than foods and energy edged up 0.1 percent following a 0.2 percent rise in March.

Before seasonal adjustment, the Producer Price Index for Finished Goods remained unchanged in April at 125.0 (1982=100). From April 1993 to April 1994, the Finished Goods Price Index moved down 0.4 percent. During this same period, consumer food prices moved up 0.4 percent, the finished energy goods index dropped 3.7 percent, and prices for finished goods other than foods and energy inched up 0.1 percent. Prices received by domestic producers of intermediate goods rose 0.4 percent from April 1993 to April 1994, and the Crude Goods Price Index was up 0.5 percent over the last 12 months.

Finished goods

The Producer Price Index for finished consumer foods decreased 0.5 percent seasonally adjusted in April in the wake of an increase of the same magnitude in the month before. Prices for fresh and dry vegetables, beef and veal, chicken eggs, fish, processed chickens, and fresh fruits and melons turned down in April after increasing a month earlier. Pork prices, however, fell only half as much as in March, and indexes for shortening and cooking oils, pasta, soft drinks, and processed turkeys turned up following March declines.

The index for finished consumer goods other than foods and energy edged 0.1 percent lower in April after seasonal adjustment following a rise of the same size in March. Prices for tobacco products, women's apparel, sanitary papers and health products, household furniture, pharmaceutical preparations, and periodicals circulation turned down after increasing in the previous month, and the index for home electronic equipment was unchanged following an unusually large advance in March. By contrast, the alcoholic beverages index edged up after a sizable decrease in the preceding month.

Capital equipment prices climbed 0.4 percent over the month following increases of 0.3 percent in March and 0.1 percent in February. The index for light motor trucks advanced 1.6 percent in April, far more than March's rise of 0.5 percent. Indexes for tools and dies, civilian aircraft, construction machinery, and metal cutting machine tools also rose more than in the prior month. In addition, the communications equipment index turned up after declining slightly in March, and electronic computer prices fell less than in the preceding month. Conversely, the heavy motor trucks index edged slightly higher following a much larger climb in March, the ships index showed no change after advancing moderately a month before, and prices for transformers and for X-ray and electromedical equipment turned down following March increases.

The index for finished energy goods edged down 0.1 percent in April after showing no change in the previous month. Indexes for residential gas and electricity turned down in April after increasing in March, and home heating oil prices fell much more than they did a month before. Gasoline prices, however, moved 1.0 percent higher following a decline in March.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components was unchanged on a seasonally adjusted basis in April after a March advance of 0.2 percent. Indexes for energy goods and for durable manufacturing materials turned down in April, and prices for construction materials fell after showing no change in March. The nondurable manufacturing materials index rose considerably more than in the previous month, however. (See table B.)

The index for intermediate energy goods fell 1.0 percent in April after edging up 0.1 percent in the preceding month. Prices for diesel fuel, residual fuel, commercial and industrial natural gas, and natural gas to electric utilities turned down after advancing in March. In contrast, indexes for gasoline and for miscellaneous petroleum and coal products turned up after declining in March.

Prices for materials for durable manufacturing decreased 0.3 percent in April following a 0.5 percent increase in the previous month. Indexes for aluminum mill shapes, copper cathode, cold rolled steel sheet and strip, flat glass, and for copper and brass mill shapes turned down after moving up in March. In addition, plywood prices fell more than in March. The cement index rose more in April than it had a month before, however, and cold finished steel bar prices climbed substantially after remaining unchanged in March.

The Producer Price Index for construction materials declined 0.4 percent in April after showing no change in the prior month. Softwood lumber prices fell 7.3 percent, much more than in March. The millwork index also fell more than it did a month before, and gypsum product prices rose far less in April than in the previous month. Additionally, indexes for wiring devices and for plumbing fixtures and brass fittings turned down following March advances. By contrast, prices for plastic construction products, asphalt felts and coatings, and switchgear turned up in April, and the concrete products index rose more than in March.

The nondurable manufacturing materials index climbed 0.9 percent in April after rising 0.5 percent in the prior month. Prices for intermediate basic organic chemicals advanced 6.8 percent following a slight increase in March. Indexes for plastic resins and materials, paperboard, medicinal and botanical chemicals, nitrogenates, woodpulp, and phosphates also rose more in April than in the month before. Prices for synthetic fibers fell more than in March, however, and indexes for inedible fats and oils and for synthetic rubber turned down. Prices for paint materials rose less than in March.

The intermediate foods and feeds index declined 0.3 percent for the second consecutive month. Lower prices for animal feeds, flour, pork, and crude vegetable oils more than offset advances for confectionery materials, fluid milk products, and for natural and processed cheese.

Crude goods

The Producer Price Index for Crude Materials for Further Processing turned down 0.5 percent in April seasonally adjusted following an advance of 2.8 percent in the preceding month. Indexes for crude energy goods and basic industrial materials turned down after rising in March, and the crude foodstuffs and feedstuffs index fell slightly more than in the prior month. (See table B.)

The crude energy materials index edged down 0.1 percent following an advance of 9.3 percent in March. The index for natural gas to pipelines prices fell 4.7 percent after surging nearly 18 percent higher in the preceding month. In contrast, the crude petroleum index increased 7.6 percent after rising nearly 5 percent a month earlier. The coal index fell 1.0 percent for the second consecutive month.

The crude nonfood materials less energy index turned down 0.3 percent in April after increasing 0.9 percent in the prior month. Prices for softwood logs, bolts, and timber and for hardwood logs were unchanged following substantial March increases. Indexes for wastepaper, aluminum base scrap, and copper ores rose considerably less than in the previous month. In addition, the iron and steel scrap index fell more than in March. The pulpwood logs index, however, turned up in April after a slight decline in the prior month, and indexes for construction sand and gravel and for raw cotton rose more than they did a month earlier.

The crude foodstuffs and feedstuffs index moved down 1.1 percent after declining 1.0 percent in March. Prices for corn, slaughter hogs, soybeans, fresh fruits and melons, unprocessed finfish, and for fresh and dry vegetables excluding potatoes fell in April. Conversely, prices were higher for slaughter cattle, hay, slaughter turkeys, and unprocessed shellfish.

Net output price indexes for mining, manufacturing, and other industries

Mining. The Producer Price Index for the net output of total domestic mining industries fell 1.2 percent in April following an 8.4 percent increase in March. (Net output price indexes are not seasonally adjusted.) In April, prices for the oil and gas extraction industry group turned down 1.6 percent after climbing 12.5 percent a month earlier. Prices for the metal mining industry group turned down slightly after rising in March, and prices for anthracite mining turned down after 3 months of no change. In contrast, the index for the nonmetallic minerals mining industry group moved up after showing no change in the previous month. Prices for the bituminous coal and lignite mining industry declined, but somewhat less than in either of the previous 2 months. In April, the Producer Price Index for total mining industries stood at 75.1 (December 1984=100), 1.3 percent lower than a year earlier.

Manufacturing. The Producer Price Index for total domestic manufacturing industries increased 0.2 percent in April after a 0.1 percent rise in March. Prices for the petroleum refining industry group turned up 1.4 percent in April following a modest decline in the previous month. In addition, prices rose 0.5 percent for the industry group for chemical and allied products after showing no change in March. Prices for the lumber and wood products industry group, however, turned down 1.4 percent after a small rise in March, and the increase for the nonmetallic mineral products industry group slowed to 0.3 percent. Most other major manufacturing industry groups showed little or no change. The index for the net output of the domestic manufacturing sector stood at 120.1 in April (December 1984=100), 0.3 percent higher than its level of a year earlier.

Other. Prices moved up 2.4 percent after falling a month earlier for airports and airport services. Prices for refined petroleum pipe lines rose after showing no change a month earlier. Prices were unchanged in April following March decreases for farm produce warehousing and storage and for air courier services. Price increases slowed considerably for hotel and motels, crude petroleum pipe lines, and deep sea domestic transportation of freight. Prices continued to rise for water transportation of freight, n.e.c. By contrast, prices turned down after rising a month earlier for passenger car rental, tour operators, metal scrap collection, natural gas utilities, truck rental and leasing, travel agencies, and railroad line haul operations. Prices were unchanged in April after rising in March for courier services except air. Prices continued to decline for freight transportation on the Great Lakes-St. Lawrence Seaway.

Information in this news release will be made available to sensory impaired individuals upon request. Voice phone: 202-606-7828; TDD phone 202-606- 5897; TDD Message Referral phone number:1-800-326-2577. Table 1. Producer Price Indexes and percent changes by stage of processing (1982=100)

1/ Comprehensive relative importance figures are computed 6/ Percent of total finished goods. once each year in December. 7/ Percent of total intermediate materials. 2/ Data for Dec. 1993 have been revised to reflect the availability 8/ Formerly titled "Crude materials for of late reports and corrections by respondents. All data are subject further processing, excluding crude to revision 4 months after original publication. foodstuffs and feedstuffs, plant and 3/ Not seasonally adjusted. animal fibers, oilseeds, and leaf tobacco." 4/ Includes crude petroleum. 9/ Percent of total crude materials. 5/ Excludes crude petroleum. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing (1982=100 unless otherwise indicated)

See footnotes at end of table. Table 2. Producer Price Indexes and percent changes for selected commodity groupings by stage of processing - Continued (1982=100 unless otherwise indicated)

1/ Data for December 1993 have been revised to reflect 2/ Not seasonally adjusted. the availability of late reports and corrections by respondents. 3/ Not available. All data are subject to revision 4 months after original publication.

1/ Data for Dec. 1993 have been revised to reflect the availability of late reports and corrections by respondents. All data are subject to revision 4 months after original publication.

2/ Prices of some items in this grouping are lagged 1 month.

Table #4 Producer price indexes for the net output of major industry groups