March 1997 Producer Price Index

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The Producer Price Index for Finished Goods declined 0.1 percent in March, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed decreases of 0.4 percent in February and 0.3 percent in January. Prices received by domestic producers of intermediate goods fell 0.6 percent in March after declining 0.1 percent the previous month. The Crude Goods Price Index dropped 6.9 percent in March following a 5.9-percent decrease in February. (See table A.)

Among finished goods in March, prices for finished goods other than foods and energy turned up 0.4 percent following a 0.1-percent decline in the previous month. The index for finished consumer foods also increased after falling in February. By contrast, prices for energy goods decreased more than a month ago.

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 Mar. -0.1 0.9 -3.4 0.4 1.6 -0.6 -6.9 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 1996 have been revised to reflect the availability of late reports and corrections by respondents.

During the first quarter of 1997, the Finished Goods Price Index moved downward at a seasonally adjusted annual rate of 3.0 percent following a 4.3-percent rate of increase during the fourth quarter of 1996. The index for finished energy goods fell at a 18.0-percent annual rate from December 1996 to March 1997 after rising at a 27.3-percent annual rate over the last three months of 1996. The index for finished consumer foods turned down at an annual rate of 1.8 percent from December to March after increasing at a 2.4-percent rate during the fourth quarter of 1996. The rate of increase for the finished goods index less foods and energy was 0.8 percent in the first quarter of 1997 after showing no change in the fourth quarter. Prices for capital equipment and consumer durable goods turned up after declining in the previous quarter, and consumer nondurables less foods turned down after advancing in the final quarter of 1996.

Before seasonal adjustment, the Producer Price Index for Finished Goods registered no change in March. The index stood at 132.2 (1982=100). From March 1996 to March 1997, the Finished Goods Price Index rose 1.6 percent. Over the same period, prices for finished consumer foods increased 2.5 percent, the index for finished energy goods advanced 3.5 percent, and prices for finished goods other than foods and energy were up 0.8 percent. Prices received by domestic producers of intermediate goods increased 0.6 percent for the 12 months ended in March, and the index for crude goods rose 0.3 percent during this same period.

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 Mar. 1.4 -4.6 0 0.6 2.1 -19.2 0.6 0.3 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 1996 have been revised to reflect the availability of late reports and corrections by respondents.

Finished Goods

The Producer Price Index for Finished Consumer Foods increased 0.9 percent in March after declining 0.3 percent in February. The index for beef and veal turned up 6.8 percent after dropping 4.3 percent a month ago. Prices for finfish and shellfish and for soft drinks also turned up after falling in the prior month. The index for roasted coffee rose faster than in the previous month. By contrast, prices for eggs for fresh use turned down 6.6 percent after advancing 1.5 percent in February. The index for bakery products also declined in March after rising in the prior month. Prices for fresh fruits and melons decreased after registering no change in February. The index for dairy products rose less than a month ago.

The index for finished consumer goods excluding foods and energy increased 0.3 percent in March after falling 0.1 percent in February. This index increased at a seasonally adjusted annual rate of 0.8 percent from December 1996 to March 1997 after rising at a rate of 0.3 percent in the fourth quarter of 1996. In March, prices for tobacco products turned up 2.5 percent following a 0.2-percent decline the previous month. The indexes for alcoholic beverages, prescription drugs, and book publishing also rose after decreasing a month ago. Conversely, prices for women's apparel increased 0.1 percent in March after advancing 0.2 percent in February. The index for cosmetics and other toilet preparations rose less than in the prior month. Prices for home electronic equipment fell after showing no change in February. The index for footwear was unchanged after increasing a month ago.

The index for capital equipment turned up 0.3 percent in March after falling 0.1 percent in February. Prices for civilian aircraft increased 2.1 percent after registering no change in the previous month. The indexes for electronic computers and for x-ray and electromedical equipment fell less than a month ago. Prices for light motor trucks showed no change in March following a decline of 0.3 percent in February. By contrast, the index for communication and related equipment turned down 0.4 percent after rising 0.1 percent in the prior month. Prices for heavy motor trucks, paper industries machinery, metal forming machine tools, and for transformers and power regulators also dropped after rising in the previous month. The index for railroad equipment fell more than a month ago.

The Producer Price Index for Finished Energy Goods decreased 3.4 percent in March following a decline of 1.2 percent in February. Prices for residential natural gas turned down 4.8 percent after advancing 0.2 percent in February. The indexes for home heating oil and gasoline fell more in March than in the previous month. Prices for residential electric power turned down in March after increasing in February. By contrast, the index for finished lubricants increased 3.8 percent after rising 0.2 percent in the prior month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.6 percent in March, seasonally adjusted, after falling 0.1 percent a month earlier. During the first quarter, this index fell at a 1.9-percent seasonally adjusted annual rate after increasing at a 1.0-percent rate in the fourth quarter of 1996. In March, prices for both energy goods and nondurable manufacturing materials dropped more than in February. The index for construction materials rose slightly less than a month ago. By contrast, prices for intermediate foods and feeds turned up after declining in the prior month. The index for durable manufacturing materials rose more than in February. Excluding food and energy, the intermediate materials index was unchanged for the second consecutive month. (See table B.)

The index for intermediate energy goods fell 4.6 percent after dropping 0.6 percent a month ago. These prices declined at a 15.6-percent seasonally adjusted annual rate during the first quarter after increasing at a 15.9-percent rate from September to December. In March, prices for diesel fuel turned down 10.7 percent after rising 1.6 percent in the prior month. The indexes for jet fuels and residual fuel also fell after rising in February. Prices for liquefied petroleum gas and utility natural gas declined more than in the previous month. Conversely, the index for coke oven products increased 1.2 percent following a 0.1-percent rise in February. Prices for miscellaneous petroleum and coal products rose after falling a month ago.

Prices for nondurable manufacturing materials declined 0.5 percent following a 0.2 percent decrease in February. This index fell at a 2.1- percent seasonally adjusted annual rate from December to March after declining at a 0.3-percent rate in the fourth quarter of 1996. In March, prices for basic organic chemicals turned down 0.7 percent following an increase of the same amount a month earlier. The index for synthetic fibers also fell after increasing in February. Prices for alkalies and chlorine, nitrogenates, and for inedible fats and oils declined more than in the prior month. The index for plastic resins and materials rose less than a month ago. By contrast, prices for paper declined 0.1 percent after falling 0.6 percent in the previous month. The index for woodpulp also decreased less than in February. Prices for phosphates turned up following a decline a month ago. The index for aluminum compounds rose more than in the prior month.

The index for construction materials rose 0.3 percent following a 0.4- percent increase in the prior month. From December to March, prices for construction materials advanced at a 3.4-percent seasonally adjusted annual rate after showing no change in the fourth quarter. In March, price increases for softwood lumber, plywood, nonferrous wire and cable, millwork, and gypsum products outweighed decreases for plastic construction products, plumbing fixtures and brass fittings, asphalt felts and coatings, and switchgear.

The index for durable manufacturing materials increased 0.7 percent after advancing 0.4 percent a month ago. Durable manufacturing material prices rose at a 5.3-percent seasonally adjusted annual rate from December to March following a 1.5-percent rate in the fourth quarter. In March, prices for copper increased 8.3 percent after declining 1.3 percent in the previous month. The indexes for gold, building paper, and for copper and brass mill shapes also turned up after falling in February. Prices for aluminum and hardwood lumber rose more than in the prior month. On the other hand, the index for cold rolled sheets and strip fell 0.4 percent following a 0.9-percent rise a month ago. Prices for hot rolled bars, plates, and structural shapes and for cement also turned down after rising in the previous month. The index for aluminum mill shapes increased less than in February. Prices for hot rolled sheet and strip showed no change after rising a month ago.

The index for intermediate foods and feeds gained 1.4 percent following a 0.8-percent decline in February. From December to March, this index fell at a 0.9-percent seasonally adjusted annual rate after decreasing at a 15.8-percent rate in the fourth quarter. In March, prices for prepared animal feeds rose 3.6 percent after remaining unchanged in the prior month. The indexes for beef and veal, crude vegetable oils, and confectionery materials turned up after declining a month ago. By contrast, prices for flour dropped 2.7 percent after increasing 1.3 percent in the previous month. The index for canned meats also turned down after rising in the prior month. Prices for malt and malt byproducts fell more than in February. The index for natural and processed cheese increased less than a month ago.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing declined 6.9 percent, seasonally adjusted, following a 5.9-percent decline in February. This index fell at a seasonally adjusted annual rate of 28.0 percent in the first quarter following a 25.5-percent rate of increase in the final quarter of 1996. In March, the index for energy materials decreased more than in the prior month. The index for basic industrial materials increased less than a month ago. By contrast, the index for foodstuffs and feedstuffs turned up after falling a month earlier. (See table B.)

The index for crude energy materials decreased 19.2 percent following a 12.4-percent decline in February. This index fell at a seasonally adjusted annual rate of 59.1 percent following a 169.7-percent rate of increase in the fourth quarter. In March, prices for natural gas dropped 29.2 percent after falling 14.7 percent in the prior month. The index for crude petroleum decreased more than a month ago. By contrast, prices for coal turned up 3.2 percent after falling 3.7 percent in February.

The index for crude nonfood materials less energy advanced 0.6 percent, following a 1.0-percent advance in February. This index rose at a seasonally adjusted annual rate of 15.5 percent in the first quarter following a 1.6-percent rate of decline from September 1996 to December 1996. In March, prices for iron and steel scrap turned down 2.2 percent after rising 5.2 percent a month ago. The index for softwood logs, bolts, and timber also fell after increasing in the prior month. Prices for pulpwood rose less than a month earlier. The index for other roundwood products showed no change after rising in the previous month. By contrast, prices for nonferrous metal ores rose 4.6 percent after showing no change in February. The indexes for wastepaper and aluminum base scrap increased more than a month ago. Prices for copper base scrap and raw cotton turned up after falling in the prior month.

The index for crude foodstuffs and feedstuffs advanced 2.1 percent following a 1.9-percent decline in February. This index fell at a seasonally adjusted annual rate of 3.4 percent during the first quarter following a 28.2-percent rate of decline in the final quarter of 1996. In March, prices for slaughter cattle gained 6.9 percent after falling 2.3 percent a month ago. The index for corn rose more than in the previous month. Prices for fluid milk turned up following a decline in the previous month. Prices for soybeans advanced more than a month ago. The index for unprocessed finfish rose after falling in the prior month. By contrast, prices for slaughter broilers and fryers fell 15.7 percent following a 2.9- percent decrease in February. The index for fresh fruits and melons fell after showing no change in the prior month. Prices for slaughter turkeys turned down after rising a month ago. The index for Irish potatoes for processing fell more than 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 fell 15.9 percent in March following a 9.7-percent decline in the previous month. (Net output price indexes are not seasonally adjusted.) From December 1996 to March 1997, this index fell at an annual rate of 51.2 percent following a 125.9-percent rate of increase in the last quarter of 1996. In March, the index for the oil and gas extraction industry group dropped 20.9 percent after declining 11.7 percent a month earlier. By contrast, prices for the metal mining industry group turned up after moving down in February. The indexes for the industry groups for bituminous coal and lignite mining and for nonmetallic minerals mining also increased after declining in the previous month. In March, the Producer Price Index for total mining industries stood at 83.3 (December 1984=100), 3.0 percent higher than a year earlier.

Manufacturing. The Producer Price Index for total domestic manufacturing industries edged down 0.1 percent in March following a 0.2-percent decline in February. This index moved down at a 0.9-percent annual rate in the first quarter of 1997 after rising at a 1.9-percent rate in the previous quarter. In March, the largest declines were for the industry groups for petroleum refining (-5.3 percent) and paper products (-0.8 percent). Prices also moved down for the industry groups for textile mill products and for electrical and electronic machinery. The largest increases were for the industry groups for tobacco manufactures (2.7 percent) and for food and kindred products (0.9 percent). Prices also increased in March for the industry groups for lumber and wood products, primary metal industries, apparel, and transportation equipment. In March, the index for the net output of the domestic manufacturing sector stood at 127.8 (December 1984=100), 1.0 percent higher than its year-earlier level.

Other. Among other industries in March, prices for railroad line-haul operations, local trucking without storage, refrigerated warehousing and storage, general warehousing and storage, deep sea transportation of freight, airports and airport services, and for operators of nonresidential buildings turned up following declines in February. The indexes for freight transportation along the Great Lakes, employment agencies, help supply, and other specialty hospitals increased after showing no change in the prior month. Price increases accelerated for travel agencies, collection of nonferrous metal scrap, hotels and motels, and home health care services. Prices for water transportation of freight, not elsewhere classified, fell less than in February.

By contrast, prices for courier services, deep sea domestic transportation of freight, freight transportation arrangement, collection of ferrous metal scrap, truck rental and leasing, offices and clinics of doctors of medicine, legal services, and for accounting, auditing and bookkeeping services turned down after rising a month earlier. The index for nonscheduled air transportation fell after showing no change in the previous month. Price increases slowed for radio broadcasting, cable and other pay television services, passenger car rental, engineering services, and architectural services. Prices for non-local trucking, air passenger transportation, telephone communications, and for natural gas utilities fell more than in February. Prices for marine cargo handling and for real estate agents and managers were unchanged after rising in February.

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Producer Price Index (PPI) most current data from the news release 2510 Text of news release 2515 PPIs and percent changes by stage of processing (table 1 of the news release and the PPI Detailed Report) and PPIs and percent changes for selected commodity groupings by stage of processing (table 2 of the news release and the PPI Detailed Report) 2520 PPIs for selected commodity groupings (table 3 of the news release) and PPIs for the net output of major industry groups (table 4 of the news release and the PPI Detailed Report)

PPI historical data 2525 PPIs for the most recent 12 months for the net output of selected industries and their products (from table 5 of the PPI Detailed Report). These data are generally available about 10:30 a.m. on the day of the release of PPI data. 2530 PPIs for the most recent 6 months by stage of processing, seasonally adjusted (for all indexes listed in table 1 of the news release and PPI Detailed Report)

PPI technical information 2620 Escalation and Producer Price Indexes: A Guide for Contracting Parties - BLS Report 807 2690 A Brief Explanation of the PPI