May 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 April to May, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This followed a decrease of the same size in April and a small increase in March. The Intermediate Goods Price Index rose 0.2 percent over the month after showing no change in April. The Crude Goods Price Index declined 1.4 percent, considerably more than its drop of 0.5 percent a month earlier. (See table A.)

Among finished goods, prices for both consumer foods and energy goods decreased about 1 percent following smaller declines in April. The index for finished goods other than foods and energy advanced 0.4 percent after moving up 0.1 percent in April and 0.2 percent in March.

Before seasonal adjustment, the Producer Price Index for Finished Goods increased 0.2 percent in May to 125.3 (1982=100). From May 1993 to May 1994, the Finished Goods Price Index declined 0.4 percent. During this same period, consumer food prices eased down 0.3 percent, the index for finished energy goods dropped 4.3 percent, and prices for finished goods other than foods and energy edged up 0.4 percent. The Intermediate Goods Price Index increased 0.9 percent during the 12 months ended in May 1994, while crude material prices were 3.0 percent lower than they had been a year earlier.

Finished goods

The index for finished consumer foods fell 0.9 percent seasonally adjusted from April to May following a 0.5 percent decline a month before. Prices for red meats, fresh and dry vegetables, processed chickens, and chicken eggs dropped considerably more than they did in April. In addition, indexes for dairy products and processed turkeys turned down after advancing in the preceding month, and prices for shortening and cooking oils and for pasta products moved up only marginally following much larger April advances. By contrast, the fresh fruits and melons index turned up 5.6 percent after falling more than 4 percent in the previous month. The processed fruits and vegetables index climbed substantially after showing no change in April, and soft drink prices rose more than they had a month before.

After showing little or no change in both March and April, the index for finished energy goods decreased 1.0 percent in May. Gasoline prices turned down 2.8 percent on a seasonally adjusted basis following an April advance of 1.0 percent; before seasonal adjustment, gasoline prices rose 3.0 percent. Indexes for both residential gas and electricity declined more than they did in the preceding month. Home heating oil prices, however, turned up after decreasing in April.

Prices for finished consumer goods other than foods and energy rose 0.4 percent over the month after inching down 0.1 percent a month before. The upturn was led by the index for tobacco products, which rose 1.9 percent seasonally adjusted after decreasing 0.9 percent in April; before seasonal adjustment, the tobacco products index was unchanged from April to May. Passenger car prices rose more than they did in April, and indexes for women's apparel, prescription drugs, sanitary papers and health products, and household furniture turned up following declines in the prior month. The index for alcoholic beverages, however, turned down after a slight increase a month earlier.

The capital equipment index rose 0.4 percent for the second consecutive month. Higher prices for motor vehicles accounted for most of the May advance, and commercial furniture prices also increased. The civilian aircraft index turned down, however.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.2 percent in May after showing no change in April. Higher prices for durable and nondurable manufacturing materials were responsible for most of the May advance, while prices for energy goods and for foods and feeds declined over the month. (See table B.)

In May, the index for durable manufacturing materials advanced 0.9 percent after declining 0.3 percent in April. Prices for copper and brass mill shapes increased 6.9 percent following a 0.9 percent drop in the prior month. Indexes also turned up in May for both hot and cold rolled steel sheet and strip, plywood, copper cathode, flat glass, and aluminum mill shapes. In contrast, the aluminum ingot index advanced less than in the previous month, building paper and building board prices turned down, and the cement index rose less than in April.

Prices for nondurable manufacturing materials registered a 0.7 percent advance in May following April's increase of 0.9 percent. Indexes for primary and intermediate basic organic chemicals, fertilizer materials, woodpulp, paperboard, paper, and plastic resins and materials advanced in May. In contrast, prices for miscellaneous basic organic chemicals declined from April to May.

The index for construction materials moved up 0.2 percent in May after an April drop of 0.4 percent. Softwood lumber prices fell 2.6 percent following a more substantial April decline, and the millwork index also fell less than it had a month before. The plywood index turned up, and prices for fabricated structural metal products and for nonferrous wire and cable rose considerably more than in April. Indexes for concrete products and for plastic construction materials, however, rose less in May than in the previous month, and the index for gypsum products turned down after rising in each of the previous 7 months.

The Producer Price Index for intermediate energy goods fell 0.5 percent in May after dropping 1.0 percent in the prior month. The diesel fuel index advanced 0.9 percent after an April decline of 7.6 percent. Indexes for industrial natural gas, natural gas to electric utilities, residual fuel, and jet fuels also turned up in May, and prices for miscellaneous petroleum and coal products rose much more than in April. Conversely, indexes for commercial electric power, gasoline, and liquefied petroleum gas turned down in May, and industrial electric power prices fell considerably more than in April.

The intermediate foods and feeds index moved down 0.9 percent in May after declining 0.3 percent a month before. The confectionery materials index decreased 0.8 percent after a 6.0 percent April gain; prices for natural and processed cheese and for condensed and evaporated milk also turned down. In addition, indexes for beef and veal and for pork declined more than in the previous month. By contrast, prices for flour, crude vegetable oils, and refined sugar advanced in May after falling in April.

Crude goods

The Producer Price Index for Crude Materials for Further Processing moved down 1.4 percent in May seasonally adjusted following a decline of 0.5 percent in the preceding month. Indexes for crude foodstuffs and feedstuffs and for basic industrial materials fell much more than in April. In contrast, the crude energy materials index turned up after edging down in the prior month. (See table B.)

The crude foodstuffs and feedstuffs index dropped 3.4 percent in May after falling 1.1 percent a month earlier. The slaughter cattle index turned down 6.4 percent after increasing 1.6 percent in the preceding month. Indexes for fluid milk, hay, and slaughter turkeys also turned down sharply after rising a month earlier. In addition, prices for slaughter hogs, fresh vegetables except potatoes, and for unprocessed finfish fell more than a month ago. The decline in the corn index, however, slowed to 3.5 percent in May after a drop of almost 6 percent in the prior month. Prices for soybeans also decreased considerably less than in April. In addition, indexes for wheat and for fresh fruits and melons turned up after falling in the previous month, and the Irish potatoes for processing index rose more than in April.

The crude nonfood materials less energy index moved down 1.1 percent after declining 0.3 percent in April. The softwood logs, bolts, and timber index fell 3.9 percent after remaining unchanged in the prior month. The index for iron and steel scrap decreased more than it did a month earlier. In addition, indexes for other roundwood products and for construction sand and gravel moved down after rising in April. Conversely, the rise in the wastepaper index accelerated to 11.8 percent in May, far more than its increase a month earlier. Indexes for copper base scrap, raw cotton, and copper ores rose considerably more than they had in April.

The crude energy materials index turned up 1.0 percent in May after inching 0.1 percent lower a month earlier. Prices for crude petroleum climbed 14.8 percent after increasing 7.6 percent in April. In addition, coal prices turned up after declining in 5 of the 6 preceding months. By contrast, the index for natural gas to pipelines dropped 9.3 percent, much more than its 4.7 percent decrease in the previous month.

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

Mining. The Producer Price Index for the net output of total domestic mining industries decreased 1.5 percent in May following a 1.2 percent decline in April. (Net output price indexes are not seasonally adjusted.) In May, prices for the oil and gas extraction industry group moved down 2.3 percent after falling 1.6 percent a month earlier. The index for the nonmetallic minerals mining industry group turned down 0.2 percent after rising 0.6 percent in the previous month. In contrast, prices turned up after falling a month earlier for the metal mining and the coal industry groups. In May, the Producer Price Index for total mining industries stood at 74.0 (December 1984=100), 6.9 percent lower than a year earlier.

Manufacturing. The Producer Price Index for total domestic manufacturing industries increased 0.2 percent in May, the same as in April. Prices for the petroleum refining industry group advanced 2.4 percent in May following a 1.4 percent increase in the previous month. Prices for the furniture and fixtures industry group rose 1.1 percent after edging down slightly in the previous month. Increases were also registered over the month for the industry groups for primary metal industries, transportation equipment, and paper products. Prices for the lumber and wood products industry group fell only half as much in May (0.7 percent) as they had in April. The index for the net output of the domestic manufacturing sector stood at 120.4 in May (December 1984=100), 0.5 percent higher than its level of a year earlier.

Other. Prices for wastepaper collection advanced 7.5 percent in May after edging up 0.1 a month earlier. Prices turned up after declining in April for truck rental and leasing, gas and electric utilities, travel agencies, and scheduled air passenger transportation. In addition, price increases accelerated for radio broadcasting, deep sea domestic transportation of freight, and nonferrous metal scrap collection. In contrast, prices fell more in May than a month earlier for ferrous metal scrap collection, freight transportation on the Great Lakes-St. Lawrence Seaway, passenger car rental, and scheduled air cargo transportation. Prices turned down after rising in the previous month for hotel and motels and for water transportation of freight not elsewhere classified. Prices for airports and airport services were unchanged after climbing 2.4 percent in April.

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