September 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 rose 0.9 percent in September, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This index declined 0.2 percent in August and showed no change in July. The index for finished goods other than foods and energy advanced 0.3 percent in September, after edging up 0.1 percent in the prior month. Prices received by manufacturers of intermediate goods increased 0.7 percent, following a 0.2-percent decrease a month earlier. The crude goods index rose 5.3 percent, after falling 1.5 percent in August. (See table A.)

Finished goods Change in finished Except goods foods from 12 Inter- Crude and months mediate Month Total Foods Energy energy ago goods goods (unadj.) 1999 Sept. 0.8 0.7 2.1 0.6 3.1 0.5 4.6 Oct. 0 -.3 -.4 .2 2.8 .2 -2.4 Nov. .1 -.2 1.1 -.1 3.1 .2 5.2 Dec. .1 0 .7 .1 2.9 .3 -4.9

Among finished goods, a 3.7-percent jump in September's finished energy goods index followed a 0.2-percent decline in August. The index for finished consumer foods rose 0.4 percent, after falling 0.7 percent in the prior month. Price increases for finished consumer goods other than foods and energy increased 0.4 percent in September, following a 0.1-percent rise in August. The index for capital equipment edged up in September, after showing no change a month ago.

During the third quarter of 2000, the finished goods price index advanced at a 2.6-percent seasonally adjusted annual rate (SAAR), after rising at a 1.8-percent rate during the second quarter of 2000. Leading this acceleration, prices for finished energy goods rose at an 11.4-percent SAAR in the third quarter of this year, following a 5.7-percent annual rate of increase during the previous three months. The index for finished goods other than foods and energy rose at a 2.2-percent SAAR from June 2000 to September 2000, following a 1.1-percent rate of increase in the previous quarter. On the other hand, the index for finished consumer foods turned down at a 1.4 percent SAAR, after rising at a 1.8-percent rate during the second quarter. The intermediate goods price index advanced at a 2.8- percent SAAR during both the second and the third calendar quarters of 2000. The seasonally adjusted annual rate of increase for the crude goods price index slowed to 11.0 percent in the third quarter, compared to a 30.0- percent rate of increase in the prior quarter. (See summary below.)

Grouping Percentage Seasonally adjusted annual change 12 rate for: months ended in December 9 3 3 3 months months months months ended ended ended ended in in in in Sept. March June Sept. 1997 1998 1999 2000 2000 2000 2000 Finished goods -1.2 0.0 2.9 4.1 7.9 1.8 2.6 Finished consumer foods -.8 .1 .8 1.3 3.6 1.8 -1.4 Finished energy goods -6.4 -11.7 18.1 21.3 51.8 5.7 11.4 Finished goods less foods 0 2.5 .9 1.4 .8 1.1 2.2 and energy Finished consumer goods, excluding foods and energy .3 4.2 1.2 1.3 .8 .8 2.4 Capital equipment -.6 0 .3 1.3 .9 1.5 1.4

Crude materials for further -11.3 -16.7 15.3 26.6 40.8 30.0 11.0 processing Foodstuffs and feedstuffs -4.0 -11.0 -.1 -2.2 21.5 -11.1 -13.3 Crude energy materials -23.1 -23.8 36.9 76.0 84.9 106.7 42.6 Crude nonfood materials 0 -16.0 14.0 -4.2 9.9 -10.5 -10.7 less energy NOTE: Late reports and corrections by respondents may cause some indexes to change 4 months after original publication. In addition, seasonally adjusted indexes may be revised for 5 years due to the recalculation of seasonal factors each January.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.8 percent in September to stand at 139.2 (1982=100). From September 1999 to September 2000, prices for finished goods rose 3.3 percent. Over two-thirds of this increase can be traced to a 17.2-percent advance in prices for finished energy goods. During the same period, prices for finished goods other than foods and energy rose 1.2 percent, and prices for finished consumer foods increased 0.3 percent. Prices received by manufacturers of intermediate goods rose 4.5 percent for the 12 months ended in September, and the index for crude goods advanced 16.3 percent during the same period.

Finished goods

The finished energy goods index rose 3.7 percent in September, after decreasing 0.2 percent in August. Gasoline prices turned up 9.3 percent in September, following a 2.8 percent decline in the previous month. The index for residential natural gas also rose, after falling in August. Price increases for diesel fuel and home heating oil accelerated in September compared to the prior month. By contrast, the index for residential electric power declined 0.3 percent, following a 1.0-percent advance a month ago. Finished lubricant prices rose at a slower rate in September than in August.

Intermediate Crude goods goods Change in intermediate Change in Exclud goods crude goods ing from Excluding from foods 12 months Energy foods 12 months and ago and ago Month Foods Energy energy (unadj.) Foods (unadj.) energy (unadj.) 1999 Sept. 1.0 1.9 0.1 2.0 1.3 9.3 1.8 16.5 Oct. .8 -.8 .2 2.2 .1 -7.0 2.4 10.6 Nov. -.6 1.8 .1 2.8 1.0 11.5 1.0 16.7 Dec. -1.9 1.4 .1 3.7 -2.0 -11.1 2.5 15.3

The index for finished consumer foods rose 0.4 percent, after falling 0.7 percent in the prior month. Fresh fruit and melon prices turned up 27.4 percent, following a 14.1-percent decline in the prior month. Prices for bakery products and roasted coffee also rose, after falling in August. The indexes for pork, dairy products, and for beef and veal fell less than a month ago. The processed young chickens index rose more than last month. By contrast, prices for eggs for fresh use, dropped 16.9 percent in September, following a 19.4-percent advance in the prior month. The indexes for confectionery end products, milled rice, and for finfish and shellfish also fell, after rising in August. September's soft drink prices fell at a slightly faster pace than in August.

The index for finished consumer goods other than foods and energy increased 0.4 percent, following a 0.1-percent rise in August. Passenger car prices rose 1.4 percent in September, after falling 0.3 percent a month ago. The indexes for light motor trucks, alcoholic beverages, sanitary paper products, and for men's and boys' apparel also turned up, after declining in the prior month. Prices for soaps and synthetic detergents rose more than in August. The index for household appliances showed no change, following a decrease last month. On the other hand, cigarette prices showed no change in September, after advancing 2.6 percent in the previous month. Prices for prescription drugs, book publishing, and textile housefurnishings turned down in September, following increases in August. During the third quarter of 2000, the index for finished consumer goods other than foods and energy rose at a 2.4-percent SAAR, after increasing at a 0.8-percent rate during the second quarter of 2000.

The capital equipment index rose 0.2 percent, after showing no change in August. The majority of September's increase can be traced to a 1.4- percent advance in prices for passenger cars and a 1.5-percent increase in prices for light motor trucks. The indexes for civilian aircraft, office and store machines, construction machinery, and commercial furniture also rose in September. By contrast, prices for heavy motor trucks, communication and related equipment, electronic computers, and for transformers and power regulators declined in September. From June 2000 to September 2000, the index for capital equipment rose at a 1.4-percent SAAR, following a 1.5-percent rate of increase in the previous quarter.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components turned up 0.7 percent in September, after posting a 0.2-percent decline in the prior month. Most of this acceleration was led by prices for intermediate energy goods, which rose at a faster rate in September than in August. The indexes for intermediate foods and feeds, durable manufacturing materials, and for materials and components for construction turned up, after falling in the previous month. Prices for nondurable manufacturing materials declined at the same rate as in August. The index for intermediate materials other than foods and energy showed no change in September, following a 0.1-percent decline in August. (See table B.)

Prices for intermediate energy goods increased 4.1 in September, after registering a 0.3-percent rise in August. The gasoline index advanced 9.3 percent, following a 2.8-percent decline in the prior month. Prices for jet fuels and diesel fuel rose more than a month ago. The indexes for commercial natural gas and residual fuels turned up, after falling the month before. By contrast, commercial electric power prices declined 0.3 percent in September, following a 0.8-percent rise in August. The industrial electric power index also turned down, after increasing in the previous month. Prices for intermediate energy materials advanced at a 21.3-percent SAAR from June 2000 to September 2000, after rising at a 3.6- percent rate in the previous quarter.

The index for intermediate foods and feeds rose 1.1 percent in September, following a 2.5-percent decline in August. Prepared animal feed prices rose 3.2 percent, after declining 4.1 percent a month earlier. The index for crude vegetable oils also turned up, following a decline in August. Prices for pork, confectionery materials, and for beef and veal fell less than in the prior month. By contrast, the index for fluid milk products declined 2.8 percent in September, after posting a 0.7-percent decrease in August. Prices for refined sugar also fell more than a month ago. The intermediate foods and feeds index declined at an 8.2-percent SAAR during the third quarter of 2000, following a 7.0-percent rate of increase in the previous quarter.

Prices for durable manufacturing materials increased 0.3 percent in September, after falling 0.2 percent in August. The index for primary aluminum advanced 2.7 percent, following a 1.8-percent drop in the previous month. Prices for plywood also turned up, after decreasing a month ago. The indexes for hot rolled sheet and strip and for building paper and board declined at a slower rate than in August, while prices for copper and brass mill shapes rose more than in the prior month. On the other hand, prices for cold rolled sheet and strip decreased 0.8 percent in September, following a 0.6-percent decline in August. Durable manufacturing material prices rose at a 0.9-percent SAAR from June 2000 to September 2000, after declining at a 1.5-percent rate during the second quarter.

The index for materials and components for construction edged up 0.1 percent in September, following a 0.1-percent drop in August. Plywood prices increased 2.4 percent, after posting a 1.1-percent decline a month ago. The indexes for softwood lumber and gypsum products fell less than in the prior month. After falling 0.2 percent in August, millwork prices showed no change in September. By contrast, the index for plastic construction products dropped 1.2 percent, following a 0.7-percent increase in August. Prices for asphalt felts and coatings and for plumbing fixtures and brass fittings also turned down, after rising in the previous month. The index for materials and components for construction fell at a 1.3- percent SAAR for the third quarter of 2000, following a 1.6-percent rate of decrease during the second quarter.

Prices for nondurable manufacturing materials fell 0.5 percent in September, the same rate of decline as in August. Falling prices for plastic resins and materials, primary basic organic chemicals, phosphates, and aluminum compounds outweighed price increases for nitrogenates, synthetic rubber, paint materials, and woodpulp. Nondurable manufacturing material prices decreased at a 0.6-percent SAAR during the third quarter of 2000, after increasing at a 7.8-percent rate during the second quarter.

Crude goods

The Producer Price Index for Crude Materials for Further Processing advanced 5.3 percent in September, after registering a 1.5-percent decline in August. Prices for crude foodstuffs and feedstuffs also turned up, following a decrease in the prior month. The index for crude energy materials rose more than a month earlier. Prices for basic industrial materials increased, after falling in the previous month. (See table B.)

The index for crude foodstuffs and feedstuffs gained 3.9 percent in September, following a 4.5-percent drop in August. Prices for slaughter broilers and fryers jumped 16.9 percent, after posting an 8.7-percent decline a month ago. The indexes for slaughter hogs, fluid milk, corn, wheat, soybeans, fresh fruits and melons, and alfalfa hay also rose, after falling in the prior month. Slaughter cattle prices decreased less than a month earlier. By contrast, the index for unprocessed finfish dropped 23.4 percent in September, following a 23.9-percent advance in August. The unprocessed shellfish index declined more than in the previous month. From June 2000 to September 2000, prices for crude foodstuffs and feedstuffs decreased at a 13.3-percent SAAR, following an 11.1-percent rate of decline in the second quarter.

The index for crude energy materials advanced 8.1 percent in September, after registering a 0.6-percent gain in August. Natural gas prices increased 9.0 percent, following a 0.6-percent rise in the prior month. The crude petroleum index jumped 9.1 percent, after posting a 2.2- percent advance a month earlier. Coal prices rose 0.9 percent, following a 3.5-percent drop in the previous month. Prices for crude energy materials increased at a 42.6-percent SAAR in the third quarter of 2000, following a 106.7-percent rate of advance in the second quarter of 2000.

Recording its first increase since February 2000, the index for basic industrial materials rose 0.3 percent in September, after a 1.3-percent decline in August. September price increases were registered for leaf tobacco, copper ores, iron and steel scrap, aluminum base scrap, raw cotton, and for construction sand, gravel, and crushed stone. By contrast, the indexes for wastepaper, softwood logs, phosphates, and iron ores decreased this month. Following a 10.5-percent SAAR of decline during the second quarter of 2000, the index for basic industrial materials fell at a 10.7-percent rate during the third quarter of 2000.

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

Mining. The Producer Price Index for the Net Output of Total Domestic Mining Industries advanced 6.2 percent in September, after registering a 0.5-percent gain in August. (Net output price indexes are not seasonally adjusted.) Leading this acceleration, the index for the crude petroleum, natural gas, and natural gas liquids industry increased 8.1 percent, following a 0.9-percent rise in the prior month. Prices received by the bituminous coal and lignite industry and the potash, soda, and borate minerals industry turned up, after falling a month earlier. The index for the gold ores industry decreased less than in the previous month. Prices received by the copper ores industry and the oil and gas well drilling industry advanced more than a month ago. On the other hand, the index for the iron ores industry declined 2.2 percent in September, after showing no change in August. For the three months ended September 2000, the index for the net output of total domestic mining industries rose at a 34.7-percent annual rate, following a 75.3 percent annual rate of increase during the second quarter of this year. In September, this index stood at 122.6 (December 1984=100), 34.0 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Domestic Manufacturing Industries jumped 0.9 percent in September, after edging down 0.1-percent in August. Accounting for over two-thirds of this acceleration, prices received by the petroleum refining and related products industry group gained 10.6 percent, following a 0.2-percent rise in the previous month. Indexes for the food and kindred products, chemicals and allied products, and the machinery (except electrical) industry groups increased, after falling a month earlier. Prices received by the transportation equipment, electrical and electronic machinery and equipment, and the lumber and wood products (except furniture) industry groups declined less than in the prior month. By contrast, the index for the tobacco manufactures industry group showed no change in September, following a 2.4-percent advance in August. Prices received by the measuring and controlling instruments and the rubber and plastic products industry groups fell, after rising a month ago. After increasing at a 3.4 percent annual rate from March 2000 to June 2000, the index for the net output of total domestic manufacturing industries advanced at a 1.8-percent rate from June 2000 to September 2000. In September, this index stood at 134.6 (December 1984=100), 3.8 percent above its year-ago level.

Services. Among services industries in September, price increases were observed for the scheduled air transportation industry, operators and lessors of nonresidential buildings, hotels and motels, skilled and intermediate care facilities, trucking (except local), truck rental and leasing, and the property and casualty insurance industry. Conversely, price declines were observed for real estate agents and managers, deep sea foreign transportation of freight, offices of physicians, and the passenger car rental industry.

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 May 2000 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. Table 2. Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued (1982=100 unless otherwise indicated)

1/ The indexes for May 2000 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.

1/ Data for May 2000 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 May 2000 have been recalculated to incorporate late reports and corrections by respondents. All indexes are subject to revision 4 months after original publication. 3/ Not available. 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 May 2000 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.