November 1999 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 advanced 0.2 percent in November, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This advance followed a 0.1-percent decline in October and a 1.1-percent rise in September. The index for finished goods other than foods and energy showed no change in November, after registering a 0.3-percent gain a month earlier. Prices received by producers of intermediate goods increased 0.3 percent for the third consecutive month. The crude goods index rose 4.0 percent, following a 1.6- percent drop in the previous month. (See table A.)

Change in Except finished Inter- goods foods from 12 mediate Crude and months Month Total Foods Energy energy ago goods goods (unadj.) 1998 Nov. -0.2 -0.4 -1.3 0.1 -0.6 -0.2 -0.1 Dec. .5 0 -1.8 1.0 0 -.7 -3.6

Among finished goods in November, the indexes for finished energy goods and finished consumer foods advanced, after declining in October. By contrast, capital equipment prices fell, following an increase a month ago. The index for finished consumer goods other than foods and energy rose 0.1 percent in November, after gaining 0.3 percent in the prior month.

For the first 11 months of 1999, the Producer Price Index for Finished Goods increased at a 2.9-percent seasonally adjusted annual rate (SAAR), after showing no change in 1998. Prices for finished goods other than foods and energy rose at a 0.8-percent SAAR for the first 11 months of 1999, after posting a 2.5-percent gain in the previous calendar year. The index for intermediate goods increased at a 4.0-percent SAAR from December 1998 to November 1999, following a 3.3-percent decline during 1998. Prices for crude goods advanced at a 22.6-percent SAAR during the first 11 months of 1999, after decreasing 16.7 percent during the prior calendar year.

Before seasonal adjustment, the Producer Price Index for Finished Goods showed no change in November, to remain at 135.0 (1982=100). From November 1998 to November 1999, the finished goods index advanced 3.1 percent. Over the preceding 12 months, prices for finished energy goods increased 15.4 percent, prices for finished consumer foods edged up 0.4 percent, and the index for finished goods other than foods and energy rose 1.8 percent. Prices received by producers of intermediate goods gained 3.0 percent for the 12 months ended in November 1999, and the index for crude materials advanced 16.0 percent during the same period.

Finished goods

Prices for finished energy goods increased 1.4 percent in November, after posting a 1.0-percent decline in October. The index for residential electric power gained 0.7 percent, following a 0.5-percent drop a month ago. Prices for gasoline, home heating oil, and finished lubricants also rose, after falling a month earlier. The residential natural gas index advanced more than in the prior month. Conversely, prices for liquefied petroleum gas increased 2.3 percent in November, following a 5.9-percent jump last month.

The finished consumer foods index rose 0.1 percent in November, after registering a 0.7-percent decrease in October. Prices for eggs for fresh use advanced 22.0 percent, following a 16.3-percent decline in the previous month. The indexes for processed young chickens, fresh and dry vegetables, pork, processed fruits and vegetables, and processed turkeys also increased, after falling a month earlier. Soft drink prices rose more than a month ago. By contrast, the beef and veal index turned down 5.7 percent, following a 1.4-percent rise in October. The index for fresh fruits and melons also decreased, after increasing last month. Prices for dairy products declined more than in the prior month.

The capital equipment index edged down 0.1-percent in November, after posting a 0.3-percent advance in October. Prices for light motor trucks fell 1.1 percent, following a 0.8-percent gain a month earlier. The civilian aircraft index rose less than in the previous month, while prices for communication and related equipment declined more than a month ago. The index for x-ray and electromedical equipment turned down, after increasing last month. Conversely, prices for transformers and power regulators advanced 2.4 percent in November, following a 0.1-percent rise in October. The electronic computers index fell less than in the prior month, and prices for agricultural machinery and equipment rose slightly more than a month earlier.

The index for finished consumer goods other than foods and energy increased 0.1 percent in November, after registering a 0.3-percent gain in October. Passenger car prices advanced 0.2-percent, following a 1.1- percent rise a month ago. The indexes for light motor trucks, prescription drugs, and household furniture decreased, after increasing in the previous month. Women's apparel prices showed no change, after advancing a month earlier. By contrast, prices for passenger car radial tires increased 3.6 percent, following a 2.5-percent fall in the prior month. The indexes for men's and boys' apparel and periodical circulation also rose, after declining in the October. Household appliance prices were unchanged, following an October decline. The index for sanitary paper and health products rose more than in the previous month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components registered a 0.3-percent gain in November, seasonally adjusted, following a similar increase in September and October. Advancing prices for intermediate energy goods, nondurable manufacturing materials, durable manufacturing materials, and materials and components for construction outweighed falling prices for intermediate foods and feeds. Excluding foods and energy, the November index for intermediate materials rose 0.1 percent, after increasing 0.4 percent in October. (See table B.)

The index for intermediate energy goods gained 1.8 percent, after posting a 0.2-percent rise in October. Diesel fuel prices jumped 8.3 percent, following a 6.3-percent drop a month earlier. The indexes for gasoline, commercial natural gas, jet fuels, industrial natural gas, and residual fuel also turned up, after falling in the prior month. By contrast, the commercial electric power index advanced 0.7 percent in November, following a 3.6-percent increase in the previous month. Prices for industrial electric power and liquefied petroleum gas rose less than a month ago.

Prices for nondurable manufacturing materials registered a 0.2-percent rise in November, following a 1.1-percent advance in October. The primary basic organic chemicals index increased 1.0 percent, after an 8.8-percent gain in the prior month. Prices for plastic resins and materials rose less than in the previous month. The indexes for paperboard, nitrogenates, inedible fats and oils, synthetic fibers, and finished fabrics fell, after rising a month ago. By contrast, phosphate prices declined 0.1 percent, following a 4.2-percent drop in the prior month. The alkalies and chlorine index rose more than in the previous month. Prices for woodpulp, and for medicinal and botanical chemicals turned up, after falling in the previous month.

The index for durable manufacturing materials increased 0.2 percent in November, following a 0.6-percent rise in October. The hot rolled sheet and strip index fell 0.4 percent, after rising 1.9 percent in the prior month. Aluminum mill shape prices rose less than in the previous month. Prices for gold and silver turned down, after rising a month ago. By contrast, the index for hot rolled bars, plates, and structural shapes turned up 0.7 percent, following a 0.8-percent decline in October. Prices for plywood, flat glass, and for copper cathode and refined copper also rose, after falling in the prior month. The building paper and board index fell less than in the previous month.

The index for materials and components for construction rose 0.1 percent in November, after posting a 0.3-percent drop a month earlier. Plywood prices rose 1.0 percent, following an 11.5-percent drop in October. The softwood lumber index also turned up, after falling in the prior month. Millwork prices showed no change, following a 0.6-percent decrease a month ago. The indexes for plastic construction products, cement, steel wire, and for plumbing fixtures and brass fittings rose more than in the previous month. By contrast, nonferrous wire and cable prices turned down 0.7 percent, after a 0.7-percent advance in the prior month. Prices for air- conditioning and refrigeration equipment, and switchgear also fell, after rising a month ago.

Prices for intermediate foods and feeds decreased 0.5 percent in November, after gaining 0.5 percent in October. The beef and veal index dropped 5.7 percent, following a 1.4-percent increase a month ago. Confectionery material prices also fell, after rising in the previous month. The indexes for fluid milk products and prepared animal feeds increased less than in the prior month. By contrast, pork prices advanced 0.9 percent, following a 5.9-percent drop in October. Flour prices also turned up, after falling a month ago. The indexes for crude vegetable oils and for natural, processed, and imitation cheese fell less than in October.

Crude Goods

The Producer Price Index for Crude Materials for Further Processing turned up 4.0 percent in November, seasonally adjusted, following a 1.6- percent decline in October. Prices for crude energy materials and crude foodstuffs and feedstuffs also rose, after falling in the previous month. By contrast, the index for basic industrial materials rose less than a month ago. (See table B.)

Prices for crude energy materials advanced 8.8 percent in November, following a 4.8-percent drop in October. November's upturn was led by the natural gas index, which surged 11.7 percent after falling 6.4 percent in the prior month. Prices for crude petroleum also turned up, after decreasing a month ago. Conversely, the coal index turned down 0.6 percent, following a 5.5-percent rise in the previous month.

The index for crude foodstuffs and feedstuffs increased 1.0 percent in November, after edging down 0.1 percent in October. Prices for slaughter broilers and fryers turned up 16.2 percent, following a 2.6-percent decline a month earlier. The indexes for corn, wheat, fresh and dry vegetables, and alfalfa hay also turned up, after falling in the previous month. Prices for soybeans and slaughter turkeys fell less than in the previous month. By contrast, slaughter cattle prices turned down 1.6 percent in November, following a 5.8-percent advance last month. The indexes for fluid milk and raw sugar cane fell more than in October. Prices for fresh fruits and melons turned down in November, after rising in the previous month.

Prices for basic industrial materials rose 0.3 percent in November, following a 2.4-percent gain in October. This deceleration was led by the index for gold ores, which fell 8.9 percent, after posting a 20.8-percent gain in the prior month. Prices for leaf tobacco, cattle hides, copper ores, raw cotton, and pulpwood also turned down, following increases a month ago. On the other hand, the iron and steel scrap index increased 6.9 percent in November, after moving up 0.3 percent in October. Wastepaper prices also rose more than the prior month. The indexes for phosphates and copper base scrap fell less than last 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 rose 6.2 percent in November, after registering a 2.8- percent decline in October. (Net output price indexes are not seasonally adjusted.) Prices received by the crude petroleum, natural gas, and natural gas liquids industry turned up 9.6 percent, following a 5.3-percent decrease a month ago. By contrast, the industry indexes for bituminous coal and lignite, gold ores, and copper ores turned down in November, after rising in the previous month. In November, the Producer Price Index for the net output of total domestic mining industries stood at 93.9 (December 1984=100), 36.3 percent above its year-ago level.

Manufacturing. The Producer Price Index for the net output of total domestic manufacturing industries increased 0.2 percent in November, after posting a 0.3-percent rise in October. Price increases for the petroleum refining, printing and publishing, chemicals and allied products, and the electrical and electronic machinery industries more than offset price decreases for the transportation equipment, food and kindred products, and for measuring and controlling instruments industries. The November Producer Price Index for the net output of total domestic manufacturing industries stood at 130.3 (December 1984=100), 3.2 percent above its year- ago level.

Other. Among other industries in November, prices increases were registered for operators and lessors of nonresidential buildings, real estate agents and managers, radio broadcasting, property and casualty insurance, and scheduled air transportation. On the other hand, the industry indexes declined for prepackaged software, hotels and motels, freight transportation arrangement, telephone communications (except radiotelephone), and passenger car rental.

The following is the schedule of 2000 release dates for Producer Price Index data:

Reference Month Release Date January 2000 Thursday, February 17 February Thursday, March 16 March Thursday, April 13 April Friday, May 12 May Friday, June 9 June Friday, July 14 July Friday, August 11 August Thursday, September 14 September Friday, October 13 October Thursday, November 9 November Thursday, December 14 December Friday, January 12, 2001 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 petroleum. 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/ Percent 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 1999 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 4 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.

1/ The indexes for July 1999 have been recalculated to incorporate 2/ Not seasonally adjusted. late reports and corrections by respondents. All indexes are 3/ Not available. subject to revision 4 months after original publication. Table 3. Producer price indexes for selected commodity groupings (1982=100 unless otherwise indicated)

1/ Data for July 1999 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.

1/ Indexes in this table are derived from the net-output-weighted industry price indexes. Because of differences in coverage and aggregation methodology, they will generally not match the movements of similarly-titled indexes which are derived from traditional commodity groupings. 2/ The indexes for July 1999 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication. Table 5. Producer price indexes by stage of processing, seasonally adjusted (1982=100)

1/ All seasonally adjusted indexes are subject to change up to 5 years after original publication due to the recalculation of seasonal factors each January. The indexes for July 1999 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.