May 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 fell 0.3 percent in May, seasonally adjusted, the Bureau of Labor Statistics of the U. S. Department of Labor reported today. This was the fifth consecutive monthly decline. The index for finished goods decreased 0.6 percent in April and 0.1 percent in March. Prices received by domestic producers of intermediate goods moved down 0.2 percent in May after declining 0.3 percent in the previous month. The Crude Goods Price Index increased 1.3 percent in May following a 0.9-percent decrease in April. (See table A.)

Prices for finished goods other than foods and energy fell 0.3 percent after dropping 0.1 percent in April. The index for finished energy goods fell less than in April. Prices for finished consumer foods turned up after declining in the previous month.

1997 Jan. -0.3 -1.0 r-0.2 r0 2.5 0.2 r3.8 Feb. -0.4 r-0.4 r-1.0 r-0.2 2.2 r0 r-6.7 Mar. -0.1 0.9 -3.4 0.4 1.6 -0.6 -6.9 Apr. -0.6 -0.4 -2.6 -0.1 0.8 -0.3 -0.9 May -0.3 0.4 -2.1 -0.3 0.3 -0.2 1.3 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for January 1997 have been revised to reflect the availability of late reports and corrections by respondents.

Before seasonal adjustment, the Producer Price Index for Finished Goods edged down 0.1 percent to 131.5 (1982=100). From May 1996 to May 1997, the Finished Goods Price Index rose 0.3 percent. Over the same period, prices for finished consumer foods increased 2.7 percent, the index for finished energy goods declined 3.1 percent, and prices for finished goods other than foods and energy were up 0.1 percent. Prices received by domestic producers of intermediate goods decreased 0.7 percent for the 12 months ended in May, and the index for crude goods fell 4.6 percent during this same period.

Finished Goods

The Producer Price Index for finished consumer foods increased 0.4 percent in May following a 0.4-percent decline in April. Prices for finfish and shellfish rose 7.9 percent in May after falling 5.0 percent during the prior month. Prices for fresh and dry vegetables, fresh fruits and melons, and beef and veal also turned up after falling in the previous month. The index for eggs for fresh use declined less than in April. By contrast, the index for pork increased 3.2 percent following a gain of 5.6 percent in April. Prices for dairy products, processed young chickens, and for processed fruits and vegetables fell more than in the prior month. The index for soft drinks turned down after increasing in April.

The index for capital equipment declined 0.2 percent in May following a 0.4-percent decrease in April. The indexes for light motor trucks, heavy motor trucks, and electronic computers fell in May by more than in the previous month. Prices for x-ray equipment were unchanged after rising in April. By contrast, prices for civilian aircraft increased 0.4 percent following a 2.0-percent decline a month earlier. The indexes for railroad equipment, tools and dies, and textile machinery also turned up after falling a month ago. Prices for commercial furniture rose 0.2 percent after increasing 0.5 percent in the prior month.

The index for finished consumer goods excluding foods and energy moved down 0.3 percent in May after showing no change in April. Prices for passenger cars decreased 1.6 percent after declining 0.5 percent in the prior month. The index for sanitary papers also fell more than a month ago. Prices for periodical circulation, soaps and detergents, alcoholic beverages, newspaper circulation, tires and tubes, and mobile homes turned down following increases in the prior month. The index for tobacco products rose less than in April. By contrast, prices for prescription drugs rose 0.4 percent following a 0.7 percent decline a month ago. The indexes for women's apparel, men's and boys' apparel, household appliances, and floor coverings also turned up after decreasing in April. Prices for sporting goods rose less than in the prior month.

The index for finished energy goods declined 2.1 percent in May following a 2.6-percent decline in April. Prices for residential natural gas decreased 1.3 percent in May after falling 3.3 percent in the prior month. The index for finished lubricants turned up 1.8 percent after decreasing 3.7 percent in the previous month. Prices for residential electric power showed no change after declining in April. Home heating oil prices rose 2.2 percent in May following a 1.4-percent advance in the prior month. Gasoline prices, however, fell 7.1 percent after declining 4.1 percent a month ago.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.2 percent in May, seasonally adjusted, after declining 0.3 percent in April. Price decreases for intermediate energy goods outweighed increases for construction materials, nondurable manufacturing materials, intermediate foods and feeds, and durable manufacturing materials. Excluding food and energy, the intermediate materials index showed no change for the third consecutive month. (See table B.)

The index for intermediate energy materials declined 1.9 percent in May following a 2.0-percent decline in April. Price decreases for gasoline, liquefied petroleum gas, commercial and industrial electric power, jet fuels, and No. 2 diesel fuel more than offset price increases for residual fuel, natural gas to electric utilities, and commercial natural gas.

The index for durable manufacturing materials advanced 0.2 percent in May following a 0.1-percent decline in April. Prices for copper cathode and refined copper increased 5.1 percent after a 6.7-percent decrease a month ago. The indexes for copper and brass mill shapes, refined gold, and refined silver bar also turned up after falling a month earlier. Prices for plywood fell less than in the previous month. The index for hot rolled sheet and strip was unchanged after turning down last month. By contrast, the index for hot rolled bars, plates, and structural shapes declined 1.1 percent following a 0.6-percent advance in April. Prices for aluminum mill shapes, cement, and cold finished bars also fell after rising a month ago.

The index for intermediate foods and feeds advanced 0.5 percent in May following a 0.4- percent advance in April. Price increases for prepared animal feeds, pork, beef and veal, crude vegetable oils, and liquid milk products outweighed price decreases for dry milk products, fluid milk products, refined sugar, and for natural, processed, and imitation cheese.

The index for nondurable manufacturing materials advanced 0.2 percent in May following a 0.2-percent decline in April. Prices for paperboard increased 1.2 percent after a 2.7-percent decrease a month earlier. The indexes for inedible fats and oils, alkalies and chlorine, woodpulp, and paint materials also turned up after moving down in the previous month. Prices for primary basic organic chemicals fell less than in the prior month. By contrast, prices for paper advanced 0.6 percent following a 1.2- percent advance in April. The indexes for nitrogenates and leather fell after rising a month ago. Prices for medicinal and botanical chemicals rose less than in the prior month.

The index for construction materials advanced 0.4 percent following a 0.3-percent gain in April. Price increases for fabricated structural metal products, softwood lumber, plastic construction products, gypsum products, millwork, nonferrous wire and cable, and wiring devices more than offset decreases for plywood, cement, and metal valves (except fluid power).

Crude Goods

The Producer Price Index for Crude Materials for Further Processing increased 1.3 percent, seasonally adjusted, following a 0.9-percent decline in April. The indexes for energy materials and basic industrial materials also turned up after falling last month. By contrast, the index for foodstuffs and feedstuffs turned down after rising a month earlier. (See table B.)

The index for crude energy materials rose 3.4 percent following a 5.2- percent decline in April. Prices for natural gas increased 5.8 percent after declining 13.3 percent in the prior month. The index for crude petroleum also turned up after falling a month ago. By contrast, prices for coal turned down 6.4 percent after rising 5.2 percent in April.

The index for crude foodstuffs and feedstuffs declined 0.3 percent following a 3.3-percent advance in April. Prices for slaughter broilers and fryers fell 10.3 percent after increasing 13.5 percent a month ago. The index for wheat also turned down after rising in the previous month. Prices for slaughter hogs and slaughter cattle increased less than a month ago. By contrast, the index for soybeans rose 5.1 percent after falling 3.5 percent in the prior month. Prices for unprocessed finfish, fresh fruits and melons, and fresh and dry vegetables also turned up after falling in April.

The index for crude nonfood materials less energy increased 1.2 percent following a 2.3-percent decline in April. Prices for iron and steel scrap increased 2.7 percent after declining 3.2 percent a month ago. The indexes for nonferrous metal ores, copper ores, raw cotton, copper base scrap, and for softwood logs, bolts and timber also turned up after falling in the prior month. By contrast, the index for iron ore declined 4.5 percent after showing no change in April. Prices for phosphates also declined after showing no change in the previous month. The index for cattle hides turned down after rising a month ago.

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

Mining. The Producer Price Index for the net output of total domestic mining industries rose 2.3 percent in May, following a 4.7-percent decline in April. (Net output price indexes are not seasonally adjusted.) In May, prices for the oil and gas extraction industry group turned up 4.0 percent after falling 6.6 percent in the previous month. The index for the metal mining industry group also rose (0.3 percent) in May after decreasing (3.8 percent) in April. By contrast, prices for the coal mining industry group turned down 3.9 percent after increasing 3.4 percent in the prior month. The index for the nonmetallic minerals mining industry group rose 0.1 percent after increasing 0.2 percent in April. In May, the Producer Price Index for total mining industries stood at 81.2 (December 1984=100), 2.1 percent lower than a year earlier.

Manufacturing. As in April, the Producer Price Index for total domestic manufacturing industries decreased 0.1 percent. Price declines for the industry groups for leather and leather products (0.7 percent), transportation equipment (0.6 percent), and for electrical and electronic machinery (0.3 percent) offset price increases for food and kindred products (0.4 percent), lumber and wood products (0.4 percent), and tobacco manufactures (0.4 percent). In May, the index for the net output of the domestic manufacturing sector stood at 127.6 (December 1984=100), 0.2 percent above its level a year ago.

Other. Among other industries in May, the index for freight transportation arrangement dropped 3.1 percent following an increase of 2.2 percent in April. Prices also turned down after rising a month earlier for nonscheduled air transportation, operators and lessors of nonresidential buildings, psychiatric hospitals, specialty hospitals (except psychiatric), for general warehousing and storage, for non-local trucking, and for line- haul operating railroads. The index for tugging and towing services increased 0.1 percent after rising 1.0 percent in the prior month. Prices also increased more slowly for local trucking without storage. The index for scheduled air transportation showed no change in May after rising 0.7 percent in April. Prices for offices and clinics of doctors of medicine, refrigerated warehousing and storage, and for engineering design, analysis, and consulting services also showed no change after increasing in the previous month. The index for hotels and motels fell 0.6 percent after declining 0.1 percent a month ago. The indexes for general medical and surgical hospitals and for medical laboratories both decreased 0.1 percent after showing no change in April.

By contrast, prices for deep sea foreign transportation of freight turned up 3.9 percent following a decline of 3.2 percent a month ago. The indexes for scrap and waste materials, truck rental and leasing, passenger car rental, electric power and natural gas utilities, cable and other pay television services, home health care services, farm product warehousing and storage, and for accounting, auditing, and bookkeeping services also rose after falling in the prior month. Prices for freight transportation on the Great Lakes-St. Lawrence Seaway decreased 0.1 percent after dropping 2.9 percent in the previous month. The indexes for water transportation of freight (not elsewhere classified), travel agencies, and domestic deep sea transportation of freight also fell less than in April. Prices for marine cargo handling increased 1.7 percent after rising 0.1 percent in the prior month. The indexes for airports, flying fields, and airport services; radio broadcasting; and architectural design, analysis, and consulting services also increased more than a month ago. Prices for advertising agencies rose 0.4 percent after showing no change in the previous month. The indexes for local trucking with storage, building cleaning and maintenance services (not elsewhere classified), skilled and intermediate care facilities, refined petroleum pipelines, and legal services also increased after showing no change in April. Prices for employment agencies showed no change after falling 0.3 percent in the prior month.

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