April 2000 Producer Price Index

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The Producer Price Index for Finished Goods declined 0.3 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decrease followed increases of 1.0 percent in February and March. The index for finished goods other than foods and energy rose 0.1 percent, the same as a month ago. Prices received by producers of intermediate goods fell 0.1 percent, after posting a 0.9-percent gain in the prior month. The crude goods index turned down 2.5 percent, following a 1.8-percent advance a month earlier. (See table A.)

Finished goods

Among finished goods in April, prices for finished energy goods fell 4.1 percent, after registering a 5.8-percent increase in March. This downturn marks the largest decrease in finished energy goods since a 5.0- percent drop in February 1991. By contrast, the index for finished consumer foods rose 1.0 percent, following a 0.1-percent gain a month ago. Capital equipment prices advanced 0.2 percent, after rising 0.1 percent in March. The index for finished consumer goods other than foods and energy rose 0.1 percent for the second consecutive month.

Before seasonal adjustment, the Producer Price Index for Finished Goods showed no change to remain at 137.0 (1982=100). From April 1999 to April 2000, finished goods prices gained 3.9 percent. Over the preceding 12 months, the index for finished energy goods increased 18.7 percent, finished goods other than foods and energy advanced 1.3 percent, and finished consumer foods rose 2.8 percent. Prices received by producers of intermediate goods increased 5.3 percent for the 12 months ended April, and the index for crude goods advanced 21.4 percent during the same period.

Finished goods

Prices for finished energy goods declined 4.1 percent in April, after registering a 5.8-percent gain in March. The gasoline index fell 11.7 percent in April, following a 14.9-percent advance in the prior month. April's drop in gasoline prices was the largest decline since a 13.2- percent decrease in August 1989. The indexes for liquefied petroleum gas and diesel fuel also declined, after rising a month ago. Home heating oil prices fell more than a month earlier. Conversely, the index for residential natural gas increased 1.6 percent, following a 0.7-percent gain in March. Prices for lubricating and similar oils also rose more than in the previous month.

Intermediate Crude goods goods

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The finished consumer foods index advanced 1.0 percent in April, after posting a 0.1-percent gain in March. This rise marks the largest jump in finished consumer foods prices since a 1.5-percent increase in January 1999. Leading the advance, the index for eggs for fresh use gained 41.6 percent, following a 30.6-percent decline in the prior month. Prices for finfish and shellfish and for shortening and cooking oils also turned up, after falling a month earlier. The indexes for dairy products, beef and veal, and processed young chickens rose more than in the previous month. By contrast, prices for fresh and dry vegetables gained 2.5 percent in April, following a 13.8-percent advance in March. The pork index also rose less than a month ago. Roasted coffee prices fell, after increasing a month ago, and prices for processed fruits and vegetables fell more in April than in the previous month.

The capital equipment index advanced 0.2 percent, after registering a 0.1-percent gain in March. Prices for civilian aircraft, communication and related equipment, x-ray and electromedical equipment, truck trailers, and heavy motor trucks rose in April. These increases outweighed falling prices for electronic computers, light motor trucks, calculating and accounting machines, and metal cutting machine tools.

In April, the index for finished consumer goods other than foods and energy edged up 0.1 percent, the same rate of increase as in March. Price increases for passenger cars, prescription drugs, alcoholic beverages, household furniture, newspaper circulation, and tires slightly outweighed declining prices for book publishing, women's apparel, light motor trucks, floor coverings, and household appliances.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components turned down 0.1 percent in April, after posting a 0.9-percent gain in March. This marks the first one-month decline for the intermediate goods index since a 0.2-percent decrease in February 1999. A downturn in prices for intermediate energy goods was the main cause of April's deceleration for intermediate goods. The indexes for nondurable manufacturing materials and construction materials rose less than in the previous month. By contrast, prices for durable manufacturing materials advanced 0.3 percent, after showing no change a month ago. The intermediate foods and feeds index rose more than in the prior month. Excluding foods and energy, the index for intermediate materials gained 0.4 percent, following a 0.4-percent rise in March. (See table B.)

Prices for intermediate energy goods fell 2.9 percent in April, after registering a 4.2-percent advance in March. The gasoline index dropped 11.7 percent, following a 14.9-percent jump in the previous month. Prices for liquefied petroleum gas, diesel fuel, and jet fuels also turned down, after rising a month earlier. The residual fuel index rose less than a month ago. By contrast, prices for industrial electric power turned up 0.6 percent, following a 0.3-percent decline in the prior month. The indexes for commercial natural gas and industrial natural gas increased more than in the previous month.

In April, the index for nondurable manufacturing materials registered a 0.6-percent increase, after gaining 1.2-percent in March. Rising prices for plastic resins and materials, paperboard, paper, basic inorganic chemicals, gray fabrics, medicinal and botanical chemicals, and woodpulp outweighed falling prices for primary basic organic chemicals, phosphates, inedible fats and oils, and nitrogenates.

Prices for materials and components for construction rose 0.1 percent in April, following a 0.3-percent increase a month earlier. Advancing prices for asphalt felts and coatings, millwork, plywood, switchgear, steel wire, and wiring devices outweighed declining prices for softwood lumber, plastic construction products, gypsum products, nonferrous wire and cable, cement, and fabricated ferrous wire products.

Prices for durable manufacturing materials gained 0.3 percent in April, after showing no change in March. The hot rolled sheet and strip index rose 2.2 percent, following a 0.4-percent rise a month ago. Prices for semi-finished steel mill products, flat glass, silver, and prepared paint turned up, after falling a month earlier. By contrast, the aluminum extrusion billet index declined 2.7 percent, following a 0.9-percent decrease in the prior month. Aluminum mill shape prices fell, after showing no change in the previous month. The cement index decreased more than in March. Prices for cold rolled sheet and strip, plywood, building paper and board, and hardwood lumber rose less than a month ago.

The intermediate foods and feeds index advanced 0.8 percent in April, after posting a 0.5-percent rise in March. Prices for fluid milk products rose 5.0 percent, following a 0.7-percent increase in the prior month. The indexes for other beverage materials, crude vegetable oils, and beef and veal also increased more than in the previous month. By contrast, prices for prepared animal feeds turned down 0.4 percent, after rising 1.0 percent a month ago. The confectionery materials index also fell, following an advance a month earlier. Refined sugar prices fell more than in the prior month. The pork index rose less than in the previous month.

Crude goods

The Producer Price Index for Crude Materials for Further Processing fell 2.5 percent in April, seasonally adjusted, after increasing 1.8 percent in March. Prices for crude energy materials turned down, after rising in the prior month. The crude foodstuffs and feedstuffs index rose less than in the previous month. Prices for basic industrial materials fell more than a month ago. (See table B.)

Prices for crude energy materials fell 6.9 percent in April, after posting a 1.2-percent increase in March. The index for crude petroleum turned down 23.7 percent, after increasing 5.1 percent in the previous month. The coal index moved down 1.9 percent in April, following a 2.1- percent rise in March. By contrast, the natural gas index turned up 8.7 percent, after falling 2.7 percent last month.

Prices for crude foodstuffs and feedstuffs increased 1.7 percent in April, after rising 3.5 percent in March. The slaughter cattle index rose 1.5 percent, following a 6.1-percent advance a month earlier. Price increases also slowed from March to April for slaughter hogs, soybeans, and raw cane sugar. The indexes for corn, slaughter turkeys, and unprocessed shellfish fell, after rising in March. Wheat prices fell more in April than in the prior month. By contrast, the index for unprocessed finfish increased 42.0 percent, after falling 24.9 percent last month. Price increases accelerated for slaughter broilers and fryers, alfalfa hay, and fluid milk. The index for fresh fruits and melons fell less than in March.

Basic industrial material prices fell 1.2 percent in April, following a 0.2-percent decline in March. The raw cotton index fell 11.6 percent, following a 6.1-percent increase a month earlier. Leaf tobacco prices fell 17.3 percent, after decreasing 2.1 percent in the prior month. The indexes for gold ores and aluminum base scrap fell more than in March. Price increases for wastepaper slowed from 10.5 percent in March to 6.1 percent in April. By contrast, the index for copper ores rose 3.3 percent in April, after declining 2.7 percent in March. Prices for pulpwood, cattle hides, copper base scrap, and for construction sand, gravel, and crushed stone also turned up, after decreasing 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 dropped 5.2 percent in April, after registering a 2.9- percent gain in March. (Net output price indexes are not seasonally adjusted.) Most of this deceleration was due to falling prices received by the crude petroleum, natural gas, and natural gas liquids industry, which declined 7.0 percent, following a 4.1-percent increase in the previous month. The index for the bituminous coal and lignite industry also turned down, after rising a month ago. By contrast, prices received by the drilling oil and gas wells industry advanced 2.5 percent in April, after declining by the same rate in March. The index for the copper ores industry also turned up from the prior month. In April, the Producer Price Index for the Net Output of Total Domestic Mining Industries stood at 94.9 (December 1984=100), 37.7 percent above its year ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Domestic Manufacturing Industries fell 0.2 percent in April, after posting a 0.8-percent gain in March. The index for the petroleum refining and related products industry group declined 3.9 percent, after gaining 8.2 percent in the prior month. Prices received by the printing, publishing, and allied industries group rose less than last month. Conversely, prices received by the industry group for food and kindred products rose 0.5 percent in April, after edging up 0.2 percent in March. The indexes for the electrical and electronic machinery and the measuring and controlling instruments industry groups rose, after falling a month ago. In April, the Producer Price Index for the Net Output of Total Domestic Manufacturing Industries stood at 132.8 (December 1984=100), 4.2 percent higher than its year-ago level.

Other. Among other industries in April, rising prices were observed for the operators and lessors of nonresidential buildings, scheduled air transportation, real estate agents and managers, hotels and motels, property and casualty insurance, and air courier services industries. By contrast, declining prices were registered for the telephone communications (except radiotelephone), life insurance carriers, passenger car rental, wireless communications, and travel agencies industries.