February 1997 Producer Price Index

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The Producer Price Index for Finished Goods declined 0.4 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed a decrease of 0.3 percent in January and an increase of 0.6 percent in December. Prices received by producers of intermediate goods fell 0.1 percent in February after rising 0.2 percent in January. The Crude Goods Price Index dropped 5.9 percent in February following a gain of 5.2 percent in January. (See table A.)

Among finished goods in February, the index for energy goods fell 1.2 percent following a 0.2-percent decrease in the prior month. Prices for finished consumer foods declined 0.3 percent after falling 1.0 percent in the previous month. The index for finished goods other than foods and energy fell 0.1 percent after remaining unchanged in January.

1997 Jan. -0.3 -1.0 -0.2 0 2.5 0.2 5.2 Feb. -0.4 -0.3 -1.2 -0.1 2.2 -0.1 -5.9 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1996 have been revised to reflect the availability of late reports and corrections by respondents.

Before seasonal adjustment, the Producer Price Index for Finished Goods dropped 0.3 percent in February to 132.2 (1982=100). From February 1996 to February 1997, the Finished Goods Price Index rose 2.2 percent. Over the same period, prices for finished consumer foods increased 2.4 percent, the index for finished energy goods advanced 9.8 percent, and prices for finished goods other than foods and energy rose 0.5 percent. Prices received by domestic producers of intermediate goods increased 1.2 percent for the 12 months ended in February, and the index for crude goods rose 6.3 percent during the same period.

Finished Goods

The Producer Price Index for finished energy goods declined 1.2 percent in February following a decrease of 0.2 percent in the prior month. Prices for gasoline turned down 3.1 percent after advancing 2.6 percent in January. The index for residential natural gas rose less than in the previous month. By contrast, prices for residential electric power increased 0.1 percent after decreasing the same amount in January. Prices for finished lubricants also turned up after declining in the prior month. The index for home heating oil fell less than a month ago.

Prices for finished consumer foods fell 0.3 percent after declining 1.0 percent a month earlier. The February drop was the fourth consecutive decline for this index. The index for eggs for fresh use turned up 1.5 percent after dropping 19.8 percent in January. Prices for fresh and dry vegetables rose more than in the previous month. The index for fresh fruits and melons showed no change after declining in January. Prices for dairy products increased after falling in the prior month. By contrast, the index for finfish and shellfish turned down 6.2 percent after rising 1.5 percent in the previous month. Prices for beef and veal and for pork decreased more than a month ago. The index for shortening and cooking oils showed no change after rising in January.

1997 Jan. -0.8 1.1 0.1 1.0 -1.0 12.9 2.0 15.1 Feb. -0.8 -0.6 0 1.2 -1.9 -12.4 1.0 6.3 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 1996 have been revised to reflect the availability of late reports and corrections by respondents.

The index for finished consumer goods excluding foods and energy fell 0.1 percent after showing no change in January. Declining prices for alcoholic beverages, sanitary paper products, household appliances, textile housefurnishings, tobacco products, and for toys, games, and children's vehicles were partially offset by increases for passenger cars, floor coverings, women's apparel, and for cosmetics and other toilet preparations.

The index for capital equipment fell 0.1 percent in February after registering no change in January. Price declines for electronic computers, light motor trucks, commercial furniture, and for x-ray and electromedical equipment outweighed price increases for communications and related equipment, paper industries machinery, metal forming machine tools, and for pumps and compressors.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.1 percent in February, seasonally adjusted, after rising 0.2 percent a month earlier. Prices for both energy goods and nondurable manufacturing materials turned down after rising in January. By contrast, prices for both construction and durable manufacturing materials rose more than in the previous month. The index for foods and feeds fell the same amount as in the prior month. Excluding foods and energy, the intermediate materials index was unchanged after gaining 0.1 percent in January. (See table B.)

The index for intermediate energy goods fell 0.6 percent after rising 1.1 percent a month ago. Prices for utility natural gas turned down 2.0 percent after rising 7.5 percent in the prior month. The indexes for gasoline and liquefied petroleum gas also fell after rising in January. Prices for residual fuel rose less than in the previous month. By contrast, the index for diesel fuel turned up 1.6 percent after falling 2.0 percent a month ago.

The index for nondurable manufacturing materials declined 0.2 percent following a 0.1-percent increase in January. Prices for paperboard fell 2.8 percent after gaining 0.1 percent a month earlier. The indexes for inedible fats and oils, woodpulp, and phosphates also turned down after rising in the previous month. Prices for paper fell more than in January. By contrast, prices for basic organic chemicals rose 0.7 percent following a 0.4-percent decline a month ago. The index for plastic resins and materials also turned up after falling in the prior month. Prices for nitrogenates fell less than a month ago, and the index for finished fabrics showed no change after declining in January.

The index for durable manufacturing materials rose 0.4 percent after advancing 0.2 percent a month ago. Prices for steel mill products increased 0.3 percent after declining 0.3 percent in the previous month. The indexes for plywood, prepared paint, and silver also turned up after falling in the previous month. Prices for aluminum mill shapes rose more than in January. By contrast, the index for copper fell 1.3 percent following a 3.5-percent rise in the prior month. Prices for copper and brass mill shapes also turned down after rising in the previous month. The indexes for aluminum, hardwood lumber, and cement rose less than in January.

The index for construction materials rose 0.4 percent after gaining 0.1 percent in the prior month. Prices for plastic construction materials increased 1.3 percent after falling 1.5 percent a month ago. The indexes for plywood and for plumbing fixtures and brass fittings also turned up after declining in January. Prices for heating equipment fell less than in the previous month. The indexes for softwood lumber and fabricated structural metal products rose more than in the prior month. Conversely, prices for gypsum products turned down 0.6 percent following a 2.7-percent increase in January. The index for wiring devices also turned down after rising a month ago. Prices for millwork, nonferrous wire and cable, and cement increased less than in the previous month.

The index for intermediate foods and feeds fell 0.8 percent for the second consecutive month. In February, price declines for beef and veal, pork, confectionery materials, fluid milk products, and crude vegetable oils outweighed price increases for natural and processed cheese, condensed and evaporated milk, and flour.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing declined 5.9 percent, seasonally adjusted, following a 5.2-percent advance in January. Prices for energy materials turned down after increasing a month earlier. The index for foodstuffs and feedstuffs fell more than the previous month. Prices for basic industrial materials rose less than a month ago. (See table B.)

The index for crude energy materials declined 12.4 percent following a 12.9-percent increase in January. Prices for natural gas turned down 14.7 percent after rising 21.6 percent a month earlier. The indexes for coal and crude petroleum also fell after increasing in the previous month.

The index for crude foodstuffs and feedstuffs declined 1.9 percent following a decrease of 1.0 percent in January. The February decline was the seventh consecutive decrease for this index. Prices for slaughter hogs turned down 10.3 percent after rising 0.5 percent a month earlier. Prices for unprocessed finfish and wheat also fell after increasing a month earlier. The index for slaughter cattle fell more than the previous month. Prices for alfalfa hay were unchanged following an increase in January. The index for soybeans rose less than a month ago. By contrast, the index for fluid milk declined 1.1 percent following a drop of 2.5 percent a month ago. Prices for slaughter broilers and fryers also fell less than in the previous month. The index for fresh fruits and melons showed no change after declining in January.

Prices for crude nonfood materials less energy advanced 1.0 percent following a 2.0-percent advance in January. The indexes for aluminum base scrap increased 0.4 percent after rising 7.8 percent a month earlier. Prices for copper base scrap turned down after moving up in the previous month. The indexes for iron and steel scrap and for softwood logs, bolts, and timber rose less than the previous month. By contrast, price declines for raw cotton slowed to 1.3 percent from 6.6 percent a month ago. The index for leaf tobacco rose more than in January. Prices for construction sand and gravel showed no change after declining in the prior 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 turned down 9.7 percent in February following a 10.1 percent advance in January. (Net output price indexes are not seasonally adjusted.) In February, prices for the oil and gas extraction industry group fell 11.7 percent after increasing 12.5 percent in the previous month. Prices also moved down after rising a month earlier for the industry groups for nonmetallic minerals mining and for bituminous coal and lignite mining. In February, the Producer Price Index for Total Mining Industries stood at 99.1 (December 1984=100), 18.8 percent higher than a year earlier.

Manufacturing. The Producer Price Index for total manufacturing industries decreased 0.2 percent in February following a 0.1 percent rise in the previous month. Prices turned down after increasing in the previous month for the industry groups for printing and publishing, nonmetallic mineral products, nonelectrical machinery, electrical and electronic machinery, and transportation equipment. The index for the tobacco manufactures industry group moved down after showing no change in January. In February, the index for the industry group for petroleum refining declined 1.4 percent after moving down 0.2 percent in January. Price declines also accelerated for the industry group for paper and allied products. Price increases slowed for the industry groups for food and kindred products, furniture and fixtures, leather products, and measuring instruments. As in January, the index for the apparel industry group edged down 0.1 percent. By contrast, prices rose after showing no change in the previous month for the industry group for textile mill products. Prices rose more rapidly than in the previous month for the industry groups for lumber and wood products and for primary metal industries. In February, the index for the net output of the domestic manufacturing sector was 127.9 (December 1984=100), 0.9 percent above its year earlier level.

Other. Among other industries in February, the index for passenger car rental increased 11.0 percent after rising 5.8 percent in the previous month. Price increases also accelerated for air courier services, travel agencies, hotels and motels, offices and clinics of doctors of medicine, architectural services, and for accounting and bookkeeping. Prices turned up after falling in January for deep sea domestic transportation of freight, crude petroleum pipelines, radio broadcasting, and for truck rental and leasing. The index for real estate agents and managers rose 0.8 percent after showing no change in the previous month. Prices continued to rise for home health care services and engineering design services. By contrast, prices turned down after rising in the previous month for local trucking (without storage), nonlocal trucking, general warehousing and storage, water transportation of freight (not elsewhere classified), air passenger transportation, telephone communications, electric power utilities, natural gas utilities, waste materials collection other than metal and paper, and for operators of nonresidential buildings. The index for railroad line haul operations fell more in February than in January. Price increases slowed for marine cargo handling, freight transportation arrangement, cable and other pay television services, metal scrap collection, recovered paper collection, skilled and intermediate care facilities, general medical and surgical hospitals, and for legal services. Indexes were unchanged after rising a month earlier for farm products warehousing and storage, nonscheduled air transportation, other specialty hospitals, and medical laboratories.

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