November 1995 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 increased 0.5 percent seasonally adjusted from October to November, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This followed a decrease of 0.1 percent in October and a 0.3 percent rise in September. Prices received by domestic producers of intermediate goods were unchanged over the month after moving down 0.2 percent in the previous month. Crude material prices rose 1.6 percent after increasing 0.3 percent in October. (See table A.)

Among finished goods, the index for finished foods rose 1.2 percent in November after showing no change in October. Price declines for finished energy goods slowed from 0.9 percent in October to 0.5 percent in November, the sixth consecutive monthly decline. Prices for finished goods less foods and energy turned up 0.4 percent after registering no change in October. Motor vehicles accounted for three-fourths of this increase.

Change in Except finished Inter- goods foods from 12 mediateCrude and months Month Total Foods Energy energy ago goods goods (unadj.) 1994 Nov. 0.6 1.0 2.2 0.2 1.3 0.8 0.6 Dec. 0.3 1.3 -0.9 0.2 1.7 0.4 0.5

reported because indexes for July 1995 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication.

Before seasonal adjustment, the Producer Price Index for Finished Goods inched up 0.1 percent in November to 128.6 (1982=100). From November 1994 to November 1995, this index increased 2.0 percent. During this same period, consumer food prices rose 3.2 percent, the index for finished energy goods fell 3.2 percent, and prices for finished goods other than foods and energy advanced 2.7 percent. The index for intermediate goods increased 3.5 percent during the 12 months ended in November 1995, and crude material prices were 4.5 percent higher than a year earlier.

Finished goods

After showing no change in October, the index for finished consumer foods increased 1.2 percent on a seasonally adjusted basis in November. The index for fresh and dry vegetables fell 0.3 percent in November following a 19.1 percent decline in October. Prices for eggs for fresh use jumped 22.6 percent following a 0.7 percent rise a month earlier. Price increases also accelerated for processed fruits and vegetables and for roasted coffee. Prices turned up after falling in October for processed young chickens, finfish and shellfish, and for fresh fruits and melons. By contrast, prices turned down after rising a month earlier for pork, soft drinks, milled rice, and for shortening and cooking oils. Price increases slowed for beef and veal, dairy products, and pasta products. The index for processed turkeys fell more rapidly in November than in October.

Prices for finished energy goods declined 0.5 percent, after falling 0.9 percent in October. In November, prices for home heating oil turned up 7.3 percent after declining 11.1 percent in the previous month. The index for residential electric power rose more in November than in the previous month. By contrast, gasoline prices fell somewhat more in November (3.8 percent) than in October (2.7 percent). After 6 straight monthly declines, gasoline prices are 10.8 percent lower than their level a year ago. Prices for residential natural gas also fell more in November than in the previous month.

Prices for finished consumer goods other than foods and energy advanced 0.4 percent in November after moving up 0.1 percent in October. The index for passenger cars increased 1.3 percent following a rise of 0.4 percent in the previous month; the index for light motor trucks increased 1.6 percent in November after falling 1.8 percent a month earlier. This acceleration in motor vehicle prices reflects, in part, the first appearance of some prices for 1996 models; new model introductions are more typically reflected in October data. Price increases also accelerated for alcoholic beverages, books, prescription drugs, mobile homes, and for lawn and garden equipment. Prices turned up after falling in October for cosmetics, newspapers, and over-the-counter drugs. Prices increased after showing no change a month earlier for soaps and detergents and for textile housefurnishings. Prices continued to rise for sanitary health products and periodicals. By contrast, prices turned down after rising in October for women's apparel, gold jewelry, and household glassware. Price increases slowed for leather footwear and for men's and boys' apparel.

In November, the capital equipment index turned up 0.4 percent after edging down 0.1 percent in October, largely reflecting the movement in light trucks. By contrast, prices turned down following an increase in October for heavy motor trucks, construction machinery, and metal cutting machine tools. Price increases slowed for pumps and compressors, transformers, oil field machinery, and printing trades machinery. The index for electronic computers decreased 0.8 percent after declining 0.6 percent in October.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components remained unchanged, seasonally adjusted, after falling 0.2 percent in the previous month. The index for energy goods turned up after falling a month earlier. Prices for durable manufacturing materials fell less than in the prior month. By contrast, the index for foods and feeds rose less than in October, and prices for nondurable manufacturing materials fell more than a month ago. In addition, the index for construction materials fell the same as in October. Excluding food and energy prices, the index for intermediate materials declined 0.2 percent in November after falling 0.3 percent a month earlier. (See table B.)

The index for intermediate energy goods increased 1.1 percent in November after falling 0.9 percent a month earlier. The index for diesel fuel turned up 2.7 percent after declining 8.8 percent in the previous month. Prices for commercial natural gas, natural gas to electric utilities, jet fuels, and residual fuels also advanced after decreasing in October. Indexes for industrial natural gas and liquefied petroleum gas rose more than a month ago. Conversely, the index for gasoline declined 3.8 percent after falling 2.7 percent a month earlier, and prices for liquid asphalt also decreased more than in the prior month.

The decline in the index for durable manufacturing materials slowed to 0.6 percent from 0.8 percent in the previous month. November was the third consecutive monthly decline for this index. The index for copper and brass mill shapes turned up 3.9 percent after falling 2.7 percent in October. Prices for copper and hot rolled steel bars also increased in November, after declining a month earlier. The index for plywood, however, declined 5.4 percent, after rising 1.7 percent in the prior month. Prices for aluminum mill shapes, hot rolled steel sheet and strip, semifinished steel mill products, and aluminum also fell more than a month ago.

The index for intermediate foods and feeds rose 2.4 percent after increasing 3.0 percent in October. The rise in the index for confectionery materials slowed to 0.8 percent from 7.4 percent in the prior month. Prices for beef and veal and fluid milk products also rose less than in October. Indexes for crude vegetable oils and pork turned down after rising in the previous month. On the other hand, the rise in the index for prepared animal feeds accelerated to 5.3 percent from 4.2 percent a month earlier. The index for non-soft drink liquid beverage bases also rose more than in the previous month. Prices for bulk liquid milk products turned up after falling a month ago.

The index for nondurable manufacturing materials fell 0.9 percent after decreasing 0.8 percent in October. Price declines for primary basic organic chemicals, plastic resins and materials, paperboard, and intermediate basic organic chemicals outweighed increases for fertilizer materials, miscellaneous basic organic chemicals, inedible fats and oils, miscellaneous inorganic acids, and processed yarns and threads.

The index for construction materials fell 0.3 percent for the second consecutive month. Price declines for softwood lumber, plywood, gypsum products, and asphalt felts and coatings more than offset increases for concrete products, nonferrous wire and cable, switchgear, and non-fluid power metal valves.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 1.6 percent, seasonally adjusted, in November, after rising 0.3 percent the previous month. Indexes for both crude foodstuffs and feedstuffs and crude energy goods rose more in November than in October. The index for basic industrial materials fell somewhat less than in October. (See table B.)

The crude foodstuffs and feedstuffs index advanced 3.6 percent, seasonally adjusted, in November, the sixth consecutive month of price increases. Prices turned up sharply in November, after declining in October, for slaughter broilers and unprocessed finfish. The index for fresh and dried vegetables fell 0.3 percent, after dropping 19.1 percent a month earlier. In addition, indexes for slaughter cattle and fluid milk rose more in November than in October. In contrast, the rise in the indexes for corn and soybeans was much less in November than in the prior month. Prices for alfalfa hay declined 8.9 percent in November, following an increase of 7.0 percent a month earlier.

In November, the index for crude energy materials rose 1.6 percent, compared to a slight increase of 0.1 percent during the previous month. The index for crude petroleum turned up 1.7 percent in November, after declining 6.1 percent in October. Prices for natural gas to pipelines rose 5.5 percent, following a 4.8 percent gain in a month earlier. Conversely, prices for coal turned down after rising in October.

The index for crude nonfood materials less energy fell 2.1 percent in November after an October decrease of 2.6 percent. November marked the fifth straight monthly decline for this index. Prices for wastepaper fell almost 25 percent after decreasing about 32 percent in October. The index for softwood logs, bolts, and timber also decreased less than in October. Furthermore, the indexes for both copper and silver ores, and pulpwood turned up in November, after declining during the previous month. The index for raw cotton rose more in November than a month earlier. By contrast, prices for iron and steel scrap and aluminum base scrap fell more than in October. The index for hardwood logs, bolts, and timber dropped sharply in November, after showing no change a month earlier.

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

Mining. The Producer Price Index for the net output of the domestic mining sector rose 2.0 percent following a rise of 0.7 percent in October. (Net output price indexes are not seasonally adjusted.) Price increases for the oil and gas extraction industry group accelerated from 0.6 percent in October to 3.6 percent in November. Prices for the anthracite mining industry group also rose more rapidly than in the previous month. After falling in October, the index for the metal mining industry group turned up in November. However, prices for the bituminous coal and lignite mining industry group turned down after increasing a month earlier. As in the previous month, prices for the nonmetallic minerals industry group edged down somewhat. In November, the Producer Price Index for total mining stood at 70.5 (December 1984=100), the same level as a year earlier.

Manufacturing. Prices received by producers for the net output of the domestic manufacturing sector moved up 0.2 percent in November after increasing 0.4 percent in October. In November, price increases for the transportation equipment industry group slowed from 3.4 percent in October to 0.4 percent in November. Prices also rose less than in October for the industry group for food and kindred products. Indexes for the industry groups for apparel and leather products turned down after increasing in the previous month. The lumber and wood products industry index fell 1.4 percent in November after decreasing 0.7 percent in October. By contrast, the petroleum refining industry group index fell 1.6 percent in November following a 3.9 percent decline in October. Prices also fell less in November than a month earlier for the primary metal industries group. Price increases accelerated for the industry groups for furniture and fixtures and for printing and publishing. In November, the Producer Price Index for total manufacturing stood at 125.0 (December 1984=100), an increase of 2.5 percent over November 1994.

Other. Among other industries, the index for waste paper collection fell about 25 percent, the seventh consecutive monthly decline. The index for metal scrap collection decreased (3.6 percent) for the third consecutive month. Prices also declined in November for water transportation of freight not elsewhere classified, electric power utilities, passenger car rental, freight transportation arrangement, and airport services. Increases were registered in November for scheduled air transportation, natural gas utilities, radio broadcasting, and for truck rental and leasing.

Recalculated Seasonal Adjustment Factors to be Available on February 11, 1996

Each year with the release of the January PPI, seasonal adjustment factors are recalculated to reflect price movements from the just-completed calendar year. This routine annual recalculation may result in revisions to seasonally adjusted indexes for the previous 5 years. The recalculated seasonal adjustment factors are customarily available around the time of the release of the January data in February. This year, the following information will be available February 11, 1996, 2 days prior to the release of PPI data for January 1996: - 1996 factors for seasonally adjusted commodity indexes. - A table of changes to seasonal status of commodity indexes. - Recalculated seasonal factors for the last 5 years (1991-1995) for Stage-of-Processing indexes. - For the overall and less food and energy finished goods, intermediate materials, and crude materials indexes, a table containing the following information for the previous 2 years (1994 and 1995): - Former and revised seasonally adjusted indexes, - Former and revised seasonally adjusted percent changes, - Former and recalculated seasonal factors. To request any of this information, call the Division of Industrial Prices and Price Index, Section of Index Analysis at (202)606-7705.

Effect of government shutdown on PPI data collection The collection period for the November Produce Price Index data presented in this release overlapped the November 14-19 shutdown of many government agencies, including the Bureau of Labor Statistics (BLS). Due to the timing and nature of our survey collection procedure and calculation process, however, the federal shutdown had no effect on this month's PPI data.

Producer Price Index data for December 1995 are scheduled for release on Thursday, January 11, at 8:30 a.m. (E.S.T.)

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: 1-800-326-2577. Table 1. Producer Price Indexes and percent changes by stage of processing (1982=100)

1/ Comprehensive relative importance figures are initially computed 3/ Includes crude petrolem. after the publication of December indexes and are recalculated 4/ Excludes crude petroleum. after final December indexes are available. The first-published 5/ Percent of total finished goods. and final December relative importances initially appear, 6/ Pecent of total intermediate materials. respectively, in the release tables containing January and May data. 7/ Formerly titled "Crude materials for 2/ The indexes for July 1995 have been recalculated to incorporate further processing, excluding crude late reports and corrections by respondents. All indexes foodstuffs and feedstuffs, plant and are subject to revision four months after original publication. animal fibers, oilseeds, and leaf tobacco." 8/ Percent of total crude materials. 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/ The indexes for July 1995 have been recalculated 2/ Not seasonally adjusted. to incorporate late reports and corrections by respondents. 3/ Not available. All indexes are subject to revision four months after original publication. Table 3. Producer Price Indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for July 1995 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, not seasonally adjusted