April 1997 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 declined 0.6 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This followed decreases of 0.1 percent in March and 0.4 percent in February. Prices received by domestic producers of intermediate goods fell 0.3 percent in April after declining 0.6 percent in the previous month. The Crude Goods Price Index dropped 0.9 percent in April following a 6.9-percent decrease in March. (See table A.)

Among finished goods in April, prices for finished goods other than foods and energy declined 0.1 percent following a 0.4-percent advance in the previous month. The index for finished consumer foods also fell after increasing in March. Prices for energy goods decreased in April, but by less than a month ago.

Before seasonal adjustment, the Producer Price Index for Finished Goods dropped 0.5 percent in April. The index stood at 131.6 (1982=100). From April 1996 to April 1997, the Finished Goods Price Index rose 0.8 percent. Over the same period, prices for finished consumer foods increased 2.4 percent, the index for finished energy goods declined 1.3 percent, and prices for finished goods other than foods and energy rose 0.6 percent. Prices received by domestic producers of intermediate goods decreased 0.1 percent for the 12 months ended in April, and the index for crude goods fell 4.8 percent during this same period.

Finished Goods

The Producer Price Index for finished consumer foods declined 0.4 percent in April, seasonally adjusted, following a 0.9-percent advance in March. Prices for fresh and dry vegetables decreased 20.4 percent after increasing 13.3 percent during the prior month. The indexes for beef and veal, dairy products, and for finfish and shellfish also fell after rising in March. Prices for roasted coffee rose less than a month ago. By contrast, prices for pork advanced 5.6 percent following a 3.6-percent decline in March. The index for processed fruits and vegetables decreased less than in the prior month. Prices for confectionery end products and processed turkeys rose more than a month ago.

The index for capital equipment declined 0.4 percent in April following a 0.3-percent advance in March. Prices for civilian aircraft decreased 2.0 percent after increasing 2.1 percent during the prior month. Prices for tools, dies, jigs, fixtures, and industrial molds also turned down after advancing one month earlier. The index for light motor trucks fell after showing no change in March. Prices for electronic computers fell more than a month ago. The index for office and store machines and equipment rose less than in the previous month. By contrast, prices for communication and related equipment advanced 0.1 percent in April following a 0.4-percent decline in March. The indexes for commercial furniture and for x-ray and electromedical equipment also turned up after decreasing last month. Prices for heavy motor trucks fell less than a month ago.

The index for finished consumer goods excluding foods and energy showed no change in April following a 0.3-percent advance in March. Prices for passenger cars decreased 0.5 percent after increasing 0.2 percent in the prior month. The indexes for prescription drugs and women's apparel also turned down after rising a month ago. Prices for tobacco products and alcoholic beverages increased less than in the previous month. By contrast, prices for periodical circulation advanced 2.0 percent in April following a 0.5-percent gain in March. Prices for over-the-counter drugs and mobile homes also rose more than a month ago. The index for soap and synthetic detergents increased after showing no change in the prior month.

The index for finished energy goods declined 2.6 percent in April following a 3.4-percent decline in March. Prices for home heating oil increased 1.4 percent after decreasing 9.9 percent in the previous month. The index for residential natural gas fell less than a month ago. By contrast, prices for finished lubricants declined 3.7 percent in April following a 3.8-percent advance in March. The index for gasoline fell more than in the prior month. Prices for residential electric power fell the same amount as in March.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.3 percent in April, seasonally adjusted, after decreasing 0.6 percent a month earlier. Prices for both intermediate energy goods and nondurable manufacturing materials fell less than in March. By contrast, the index for durable manufacturing materials turned down after rising a month ago. Prices for intermediate foods and feeds increased less than in the prior month. The index for construction materials rose at the same rate as in March. Excluding food and energy, the intermediate materials index was unchanged for the third consecutive month. (See table B.)

The index for intermediate energy goods fell 2.0 percent after dropping 4.6 percent a month ago. Prices for liquefied petroleum gas declined 5.3 percent after falling 20.7 percent in March. The indexes for diesel fuel, residual fuel, and natural gas to electric utilities also fell less than the prior month. Conversely, prices for industrial electric power turned down 0.1 percent after increasing 0.1 percent a month ago. The index for coke also fell after rising. Prices for gasoline and liquid asphalt decreased more than in March.

The index for nondurable manufacturing materials declined 0.2 percent following a 0.5 percent decrease in March. Prices for paper turned up 1.2 percent after falling 0.1 percent a month earlier. The indexes for nitrogenates and synthetic fibers also rose after declining. Prices for medicinal and botanical chemicals increased in April after showing no change in March. By contrast, the index for miscellaneous inorganic chemicals turned down 0.7 percent following an increase of 1.0 percent in the prior month. The index for miscellaneous basic organics fell after showing no change a month ago. Prices for woodpulp fell more than the previous month. The index for plastic resins and materials rose less.

The index for durable manufacturing materials turned down 0.1 percent after advancing 0.7 percent a month ago. Prices for primary nonferrous metals dropped 1.7 percent after rising 3.9 percent in the previous month. The indexes for copper and brass mill shapes, plywood, and building paper also fell after increasing in March. Prices for hot rolled sheet and strip fell after showing no change a month ago. The index for aluminum mill shapes rose less than in the prior month. Conversely, prices for hot rolled bars, plates, and structural shapes turned up 0.6 percent after declining 0.2 percent in the prior month. The indexes for cold rolled sheets and strip, cold finished bars, and cement also rose after decreasing last month. Prices for semi-finished steel mill products rose faster than in March.

The index for intermediate foods and feeds gained 0.4 percent following a 1.4-percent increase in March. Prices for prepared animal feeds rose 1.0 percent after increasing 3.6 percent in the prior month. The indexes for beef and veal, crude vegetable oils, and confectionery materials turned down after rising a month ago. By contrast, prices for pork turned up 5.6 percent after falling 3.6 percent in March. The indexes for flour, fluid milk products, and canned meats also rose after declining in the previous month.

The index for construction materials rose 0.3 percent for the second consecutive month. Price increases for softwood lumber, fabricated structural metal products, plastic construction products, and millwork outweighed decreases for other metal products and plywood.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing declined 0.9 percent, seasonally adjusted, following a 6.9-percent decline in March. The index for energy materials decreased less than the prior month. The index for foodstuffs and feedstuffs increased more than a month ago. By contrast, the index for basic industrial materials decreased after increasing a month earlier. (See table B.)

The index for crude energy materials fell 5.2 percent following a 19.2- percent decline in March. Prices for natural gas dropped 13.3 percent after falling 29.2 percent in the prior month. The index for crude petroleum also decreased less than a month ago. By contrast, prices for coal rose 5.2 percent after increasing 3.2 percent last month.

The index for crude foodstuffs and feedstuffs advanced 3.3 percent following a 2.1-percent increase in March. Prices for slaughter hogs gained 19.2 percent after falling 10.2 percent a month ago. The index for slaughter broilers and fryers also rose after decreasing in the prior month. Prices for wheat rose more than in the previous month. The index for alfalfa hay increased after showing no change in March. By contrast, prices for corn turned down 3.9 percent after rising 9.9 percent in the prior month. The indexes for soybeans, fluid milk, and for fresh and dry vegetables also fell after increasing in March.

The index for crude nonfood materials less energy declined 2.3 percent following a 0.6-percent advance in March. Prices for nonferrous metal ores turned down 5.1 percent after rising 4.6 percent a month ago. The indexes for copper ores, wastepaper, and raw cotton also fell after increasing in the prior month. Prices for iron and steel scrap fell more than in March. The index for phosphates showed no change after rising in the previous month. By contrast, prices for other roundwood products increased in April after showing no change in March.

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 4.7 percent in April following a 15.9-percent decline in March. (Net output price indexes are not seasonally adjusted.) In April, price decreases for the oil and gas extraction industry group slowed to 6.6 percent from 20.9 percent in the previous month. The index for the metal mining industry group turned down 3.8 percent after rising 3.6 percent in March. Prices for the industry group for coal mining services also rose after falling in the prior month. By contrast, price increases for the bituminous coal and lignite mining industry group rose 3.3 percent after gaining 2.1 percent in March. In April, the producer price index for total mining industries stood at 79.4 (December 1984=100), 7.7 percent lower than a year ago.

Manufacturing. The Producer Price Index for total domestic manufacturing industries decreased 0.1 percent for the second consecutive month. Price declines for the industry groups for petroleum refining, paper and allied products, and transportation equipment outweighed increases for the industry groups for tobacco products, lumber and wood products, and nonmetallic mineral products. In April, the index for the net output of the domestic manufacturing sector was 127.7 (December 1984=100), 0.7 above its year-earlier level.

Other. Among other industries in April, the index for recovered paper collection fell 7.6 percent, following an increase of 8.3 percent in March. Prices for farm product warehousing and storage, deep sea foreign transportation of freight, freight transportation along the Great Lakes, travel agencies, cable and other pay television services, nonferrous metal scrap collection, hotels and motels, employment agencies, passenger car rental, and home health care services also turned down after rising a month earlier. Price for railroad line-haul operations, refrigerated warehousing and storage, waste materials collection (other than metal and paper), and architectural services rose less than in the previous month. Prices for water transportation of freight (not elsewhere classified), scheduled air cargo transportation, ferrous metal scrap collection, and for accounting, auditing, and bookkeeping services fell more than in March. The indexes for local trucking with storage, advertising agencies, skilled and intermediate care facilities, and medical laboratories were unchanged after rising in the previous month. The index for electric power utilities declined after showing no change in March.

By contrast, prices for non-local trucking, scheduled air passenger transportation, nonscheduled air transportation, freight transportation arrangement, offices and clinics of doctors of medicine, and psychiatric hospitals turned up after declining in March. Prices for local trucking without storage, general warehousing and storage, tugging and towing services, radio broadcasting, and operators of nonresidential buildings rose more than in the prior month. The indexes for deep sea domestic transportation of freight and for natural gas utilities fell less than a month ago. The indexes for courier services (except by air) and telephone communication (except radiotelephone) were unchanged after declining in March.

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New table added to the monthly PPI news release

Effective this month with the release of Producer Price Index data for April 1997, a new table has been added to the monthly news release. Table 5 presents seasonally adjusted indexes for the most recent six months for all of the stage-of-processing (SOP) series. This new table supplements table 1, which presents unadjusted indexes and selected percent changes, both unadjusted and seasonally adjusted, for all of the SOP series.