March 2000 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 increased 1.0 percent in March, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise followed a 1.0-percent rise in February and no change in January. Prices received by producers of intermediate goods rose 0.9 percent, following a 0.8-percent gain in the prior month. The crude goods index increased 1.8 percent, after a 4.2- percent advance in February. (See table A.)

Finish ed goods

2000 Jan. 0 .1 .7 -.2 2.5 .4 2.7 Feb. 1.0 .4 5.2 .3 4.0 .8 4.2 Mar. 1.0 .1 5.8 .1 4.5 .9 1.8 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 1999 have been revised to reflect the availability of late reports and corrections by respondents.

Most of the March increase for finished goods can be attributed to a 5.8-percent jump in finished energy goods. The indexes for finished consumer goods other than foods and energy, capital equipment, and finished consumer foods inched up slightly in March. The index for finished goods other than foods and energy edged up 0.1 percent in March, following a 0.3- percent gain in the prior month.

During the first quarter of 2000, the Finished Goods Price Index moved up at a seasonally adjusted annual rate of 8.2 percent, following a 1.2- percent rate of increase during the fourth quarter of 1999. The index for finished energy goods rose at a 57.5-percent annual rate from December to March, after increasing at a 6.9-percent annual rate over the last three months of 1999 and accounted for more than three-fourths of the faster rate of increase in the finished goods index in the first quarter of 2000. Finished consumer food prices turned up at an annual rate of 3.0 percent from December 1999 to March 2000, following a 1.8-percent annual rate of decline during the fourth quarter of 1999. Prices for finished goods other than foods and energy increased at a 1.1-percent seasonally adjusted annual rate, after rising at a 0.8-percent rate during the prior quarter.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.7 percent in March to stand at 137.0 (1982=100). From March 1999 to March 2000, the Finished Goods Index increased 4.5 percent. Over the past 12 months, the index for finished goods other than foods and energy gained 1.2 percent, prices for finished consumer foods increased 0.9 percent, and the index for finished energy goods advanced 29.2 percent. Prices received by domestic producers of intermediate goods rose 6.0 percent for the 12 months ended in March, and the index for crude goods jumped 27.3 percent during the same period.

Interm Crude ediate goods goods Change in intermediate Change in Exclud goods Excluding crude goods ing from from foods 12 months Energy foods 12 months and ago and ago Month Foods Energy energy (unadj.) Foods (unadj.) energy (unadj.)

2000 Jan. 0 .8 .3 4.1 .7 4.4 3.2 18.0 Feb. .6 4.2 .2 5.3 .7 10.0 -.2 26.1 Mar. .5 4.2 .4 6.0 3.5 1.2 -.2 27.3 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for November 1999 have been revised to reflect the availability of late reports and corrections by respondents.

Finished goods

Prices for finished energy goods advanced 5.8 percent in March, following a 5.2-percent gain in February. After registering a 6.2-percent rise last month, the index for liquefied petroleum gas jumped 28.5 percent, the largest one-month rate of increase since a 30.8-percent advance in October 1990. Gasoline price increases accelerated from 12.9 percent in February to 14.9 percent in March. The indexes for residential electric power and finished lubricants also rose more than in the previous month. By contrast, home heating oil prices fell 0.4 percent in March, following a 30.6-percent advance in February. Prices for residential natural gas rose less than last month. The index for kerosene turned down, after a large increase in the prior month.

The index for finished consumer goods other than foods and energy edged up 0.1 percent in March, after advancing 0.5 percent in February. Prices for tobacco products fell 0.2 percent, following a 5.6-percent gain last month. The indexes for alcoholic beverages, household appliances, and periodical circulation also turned down from last month. Prices for sanitary papers and health products rose less than a month ago. The home electronic equipment index fell, after showing no change in the previous month. Conversely, passenger car prices rose 0.5 percent in March, following a 1.2-percent decline in February. Prices for prescription drugs, light motor trucks, household furniture, and for tires, tubes, and tread also rebounded, after falling in February.

The index for capital equipment rose 0.1 percent in March, after showing no change in February. Rising prices for civilian aircraft, light motor trucks, heavy motor trucks, and commercial furniture slightly outweighed falling prices for x-ray and electromedical equipment, communication and related equipment, electronic computers, and truck trailers.

Prices for finished consumer foods edged up 0.1 percent in March, following a 0.4-percent advance in February. The eggs for fresh use index dropped 30.6 percent, after advancing 24.6 percent in the prior month. Prices for finfish and shellfish, fresh fruits and melons, and processed fruits and vegetables also turned down, following an increase last month. The indexes for soft drinks and pork rose less than a month ago. On the other hand, the index for fresh and dry vegetables posted a 13.8-percent gain in March, after declining 6.7 percent in February. Prices for dairy products, processed young chickens, beef and veal, and roasted coffee also turned up, following a decline in the previous month.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.9 percent, seasonally adjusted, after registering a 0.8- percent increase in February. More than half of the increase in this index can be traced to higher prices for intermediate energy goods. The indexes for nondurable manufacturing materials, materials and components for construction, and intermediate foods and feeds also advanced in March. The index for durable manufacturing materials showed no change, after increasing 0.8 percent in the prior month. Excluding foods and energy, the index for intermediate materials rose 0.4 percent, following a 0.2-percent increase in the prior month. During the first quarter of 2000, the Producer Price Index for Intermediate Materials, Supplies, and Components advanced at an 8.9-percent seasonally adjusted annual rate, following a 3.6- percent rate of increase during the prior quarter. (See table B.)

The intermediate energy goods index increased 4.2 percent, after posting a similar increase in February. Rising prices for gasoline, liquified petroleum gas, jet fuels, diesel fuel, residual fuels, and commercial electric power more than offset falling prices for industrial electric power and coke oven products. The intermediate energy goods index advanced at a seasonally adjusted annual rate of 43.4 percent during the first quarter of 2000, following a 15.7-percent rate of increase for the previous three months.

Prices for nondurable manufacturing materials registered a 1.2-percent increase, following a 0.5-percent rise in February. The plastic resins and materials index turned up 2.4 percent, after falling 1.8 percent in the previous month. Prices for paperboard, basic organic chemicals, and paper rose more than in the prior month. The inedible fats and oils index fell less than a month ago. By contrast, gray fabric prices turned down 3.0 percent, after a 0.9-percent advance in the previous month. The indexes for basic inorganic chemicals and fertilizer materials also turned down, after rising in February. Prices for nondurable manufacturing materials rose at a seasonally adjusted annual rate of 9.3 percent during the first quarter of 2000, after rising at a 6.1-percent rate for the previous quarter.

The index for materials and components for construction increased 0.3 percent in March, the same rate of increase as in the prior month. Price increases for plastic construction products, millwork, fabricated structural metal products, nonferrous wire and cable, and plywood outweighed price declines for gypsum products, softwood lumber, switchgear, wiring devices, and cement. From December 1999 to March 2000, construction material prices increased at a seasonally adjusted annual rate of 4.1 percent, after rising at a 1.1-percent rate during the final quarter of 1999.

Intermediate foods and feeds prices gained 0.5 percent, following a 0.6-percent increase February. Advancing prices for prepared animal feeds, beef and veal, pork, fluid milk products, and crude vegetable oils outweighed falling prices for natural, processed, and imitation cheese, refined sugar, and butter. During the first quarter of 2000, the intermediate foods and feeds index rose at a 4.8-percent seasonally adjusted annual rate, after decreasing at a 5.6-percent rate during the prior quarter.

The durable manufacturing materials index showed no change in March, after posting a 0.8-percent rise in February. Aluminum mill shape prices showed no change, after rising 2.3 percent in the prior month. Prices for primary aluminum, semi-finished steel mill products, prepared paint, copper and brass mill shapes, gold, and flat glass fell, after rising a month ago. The copper cathode and refined copper index fell more than in the previous month. On the other hand, prices for hot rolled bars, plates, and structural shapes turned up 1.5 percent, after falling 0.2 percent in the prior month. The indexes for plywood, cold rolled sheet and strip, building paper and board, and hardwood lumber rose more than in the previous month. From December 1999 to March 2000, the durable manufacturing materials index increased at a seasonally adjusted annual rate of 6.4 percent, following a 3.9-percent rate of increase for the previous quarter.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 1.8 percent in March, seasonally adjusted, following a 4.2- percent rise in February. Price increases for crude energy materials slowed markedly from the prior month. By contrast, the crude foodstuffs and feedstuffs index rose more rapidly in March than in February. Prices for basic industrial materials edged down at the same rate as a month ago. During the first quarter of 2000, the Producer Price Index for Crude Materials for Further Processing advanced at a seasonally adjusted annual rate of 40.6 percent, following an 8.0-percent rate of decline in the final quarter of 1999. (See table B.)

Prices for crude energy materials gained 1.2 percent in March, after posting a 10.0-percent increase in February. The index for natural gas turned down 2.7 percent, following a 9.0-percent advance in February. Crude petroleum price increases slowed from 16.6 percent in February to 5.1 percent in March. By contrast, the coal index turned up 2.1 percent, after falling 2.6 percent in the previous month. Prices for crude energy materials rose at an 82.2-percent seasonally adjusted annual rate from December 1999 to March 2000, following a 24.3 percent rate of decline from September 1999 to December 1999.

Prices for crude foodstuffs and feedstuffs rose 3.5 percent in March, after rising 0.7 percent in February. The slaughter cattle index rose 6.1 percent, after falling 1.0 percent in the prior month. Prices for slaughter broilers and fryers, fresh and dry vegetables, raw cane sugar, and slaughter turkeys also increased, following a decline a month earlier. Fluid milk prices rose in March, after showing no change in February. By contrast, prices for unprocessed finfish fell 24.9 percent, following a 28.5-percent advance in the prior month. The indexes for fresh fruits and melons and for wheat also turned down, after increasing in the prior month. Price increases slowed from February to March for corn, alfalfa hay, soybeans, and unprocessed shellfish. From December 1999 to March 2000, the index for crude foodstuffs and feedstuffs increased at a 21.5-percent seasonally adjusted annual rate, following a 4.0-percent rate of decline in the final quarter of 1999.

The index for basic industrial materials fell 0.2 percent in March, the same as in February. Prices declined for nonferrous metal ores, iron and steel scrap, pulpwood logs, leaf tobacco, softwood logs, nonferrous scrap, phosphates, cattle hides, and hardwood logs. Price increases were registered for wastepaper (10.5 percent) and raw cotton (6.1 percent). The basic industrial materials index rose at an 11.7-percent seasonally adjusted annual rate from December 1999 through March 2000, following a 24.5-percent rate of advance in the final quarter of 1999.

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

Mining. The Producer Price Index for the Net Output of Total Domestic Mining Industries advanced 2.9 percent in March, after registering an 8.1- percent gain in February. (Net output price indexes are not seasonally adjusted.) Prices received by the crude petroleum, natural gas, and natural gas liquids industry gained 4.1 percent, following an 11.5-percent advance in the previous month. The indexes for the drilling oil and gas wells, gold ores, copper ores, and construction sand and gravel industries turned down, after rising a month ago. Prices received by the oil and gas exploration services industry declined more than in the prior month. By contrast, the index for the bituminous coal and lignite industry increased 1.5 percent, following a 1.6-percent decrease in February. Prices received by the potash, soda, and borate minerals industry and the crushed and broken limestone industry rose more than a month earlier. During the first quarter of 2000, the Producer Price Index for the Net Output of Total Mining Industries increased at an annual rate of 71.3 percent, after decreasing at a 16.4-percent rate during the final quarter of 1999. In March, this index stood at 100.1 (December 1984 = 100), 57.9 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Domestic Manufacturing Industries advanced 0.8 percent in March, after registering an 0.9-percent gain in February. Rising prices were observed for the petroleum refining and related products industry group; the chemicals and allied products industry group; the paper and allied products industry group; the food and kindred products industry group; the printing, publishing, and allied products industry group; and the transportation equipment industry group. These advances more than offset declining prices received by the electrical and electronic machinery, equipment, and supplies industry group; the tobacco manufactures industry group; and the measuring and controlling instruments industry group. From December 1999 to March 2000, the Producer Price Index for the Net Output of Total Manufacturing Industries increased at a 7.6-percent annual rate, following a 2.8-percent rate of increase during the previous calendar quarter. In March, this index stood at 133.0 (December 1984 = 100), 5.3 percent above its year-ago level.

Other. Among other industries in March, price increases were observed for the telephone communications (except radiotelephone) industry, real estate agents and managers, passenger car rental, radio broadcasting, the trucking (except local) industry, courier services (except by air), air courier services, and the scheduled air transportation industry. Price decreases were observed for operators and lessors of nonresidential buildings, engineering services, travel agencies, deep sea foreign transportation of freight, and truck rental and leasing.