February 2001 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 edged up 0.1 percent in February, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise followed a 1.1-percent increase in January and a 0.2-percent gain in December. At the earlier stages of processing, prices received by producers of intermediate goods edged down 0.1 percent, following a 0.7-percent rise in the prior month, while the crude goods index decreased 14.2 percent, after jumping 13.9 percent a month ago. (See table A.)

2001 Jan. 1.1 .8 3.8 .7 4.8 .7 13.9 Feb. .1 .6 1.4 -.3 4.0 -.1 -14.2 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2000 have been revised to reflect the availability of late reports and corrections by respondents.

Led by price declines for passenger cars and light motor trucks, the index for finished goods other than foods and energy fell 0.3 percent, following a 0.7-percent advance in January. Excluding passenger cars and light motor trucks, this index would have increased 0.1 percent in February. Prices for finished energy goods rose 1.4 percent, after posting a 3.8-percent advance in the prior month. The rate of increase in prices for finished consumer foods slowed to 0.6 percent in February from 0.8 percent in January.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.2 percent to stand at 141.5 (1982=100). From February 2000 to February 2001, finished goods prices advanced 4.0 percent. Over the same period, the finished energy goods index jumped 18.4 percent, prices for finished goods other than foods and energy gained 1.3 percent, and the index for finished consumer foods increased 2.6 percent. Prices received by producers of intermediate goods moved up 3.5 percent for the 12 months ended in February, and the crude goods index registered a 20.8-percent gain during the same period.

2001 Jan. 1.7 3.1 .2 4.4 2.2 25.0 .5 46.5 Feb. -1.5 -1.1 .1 3.5 -1.6 -23.3 -2.5 20.8 r=revised. Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for October 2000 have been revised to reflect the availability of late reports and corrections by respondents.

Finished goods

Prices for finished consumer goods other than foods and energy dipped 0.4 percent in February, following a 0.8-percent rise in January. The passenger car index declined 1.5 percent in February, after having increased 1.2 percent in the prior month. February's decrease in passenger cars is the largest decline since a 1.6-percent drop in July 1997. Light motor truck prices fell 3.6 percent, following a 0.3-percent gain in January. The cigarette index showed no change in February, after posting a 6.3-percent advance in the previous month. Prices for sanitary papers and health products and for cosmetics and other toilet preparations turned down in February. The prescription drugs index showed little change, compared to a 0.5-percent rise in January. By contrast, prices for tufted broadloom carpets turned up 1.9 percent, after falling 1.1 percent in January. The indexes for newspaper circulation, footwear, and women's apparel also turned up in February. Prices for girls', children's, and infants' apparel showed no change, following a decrease in the prior month.

The capital equipment index fell 0.3 percent, after posting a 0.3- percent gain in January. February's 3.6-percent decline in light motor truck prices was the largest since a 3.7-percent decrease in October 1982 and followed a 0.3-percent rise in the previous month. The indexes for passenger cars and heavy motor trucks also fell, after advancing a month ago. Prices for civilian aircraft and commercial furniture increased less than in the prior month. Conversely, the index for electronic computers declined 1.1 percent, following a 5.4-percent drop in the previous month. Prices for communication and related equipment showed little change for the eighth consecutive month. The index for construction machinery and equipment decreased less than a month earlier.

The index for finished energy goods advanced 1.4 percent, after increasing 3.8 percent in January. Leading this deceleration, the rate of increase in residential natural gas prices slowed to 3.5 percent from an 11.3-percent rate in the prior month. The indexes for liquefied petroleum gas and residential electric power also increased at a slower pace than in January. Gasoline prices turned down in February. On the other hand, the home heating oil index decreased 1.6 percent in February, following a 3.6- percent decline in January. Diesel fuel prices also fell less than a month earlier. The index for finished lubricants rose more than in January.

Finished consumer food prices rose 0.6 percent in February, following a 0.8-percent gain in the prior month. In February, advancing prices for finfish and shellfish, fresh and dry vegetables, processed young chickens, pork, and bakery products outweighed declining prices for fresh fruits and melons, dairy products, and soft drinks.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components edged down 0.1 percent in February, after posting a 0.7-percent gain in January. Prices for intermediate energy goods and intermediate foods and feeds turned down, after rising in the prior month. The index for nondurable manufacturing materials advanced at a slower rate than in the previous month. By contrast, prices for materials and components for construction rose, after decreasing in January. The index for durable manufacturing materials fell less than in the prior month. Excluding foods and energy, prices for intermediate materials, supplies, and components inched up 0.1 percent, following a 0.2-percent rise in January. (See table B.)

The intermediate energy goods index dropped 1.1 percent in February, compared to a 3.1-percent increase in January. Commercial electric power prices fell 2.6 percent, following a 3.9-percent advance a month earlier. The indexes for natural gas to electric utilities, industrial electric power, industrial natural gas, and gasoline also turned down, after rising in the prior month. February prices for commercial natural gas and liquefied petroleum gas increased at a slower pace than in January. Conversely, the jet fuels index declined 0.6 percent in February, following a 12.9-percent drop in January. Diesel fuel prices also fell less than in the previous month.

The index for intermediate foods and feeds fell 1.5 percent in February, after posting a 1.7-percent rise in January. Prices for prepared animal feeds declined 3.5 percent, following a 3.0-percent advance a month ago. The fluid milk products index also turned down, after moving up in the previous month. In February, beef and veal prices showed no change, following an increase in the prior month. The index for confectionery materials rose at a slower rate than in January. By contrast, pork prices moved up 1.3-percent in February, after falling 2.6 percent in the prior month. The indexes for butter and for natural, processed, and imitation cheese also rose in February, following declines in the previous month. Refined sugar prices increased at a faster pace than in January.

In February, rising prices for nondurable manufacturing materials slowed to 0.7 percent, following a 1.1-percent rate of increase in January. The index for nitrogenates moved up 4.1 percent in February, after jumping 24.1 percent a month earlier. Prices for paperboard decreased more than in the prior month. The index for inedible fats and oils turned down in February. Paper prices showed no change, after rising in the previous month. On the other hand, the index for basic inorganic chemicals increased 7.3 percent, following a 0.2-percent decline in January. Prices for synthetic fibers and phosphates also advanced, after falling a month ago. The index for primary basic organic chemicals rose more than in January.

The index for materials and components for construction advanced 0.3 percent in February, following a 0.3-percent decline a month earlier. Softwood lumber prices increased 2.2 percent, after falling 2.9 percent in January. The indexes for fabricated structural metal products, air conditioning and refrigeration equipment, and steel wire also turned up, following declines in the previous month. The rate of decline in prices for plywood and gypsum products slowed from January to February. By contrast, the nonferrous wire and cable index decreased 1.1 percent in February, after declining 0.6 percent in January. Prices for millwork, heating equipment, and wiring devices rose less than in the prior month. The index for fabricated ferrous wire products turned down, after advancing in January.

Price decreases for durable manufacturing materials slowed from a 0.7- percent rate of decline in January to a 0.2 percent rate in February. The index for steel mill products fell 1.0 percent, after falling 1.7 percent in January. In February, prices for aluminum mill shapes and cement turned up, following declines a month earlier. The indexes for copper cathode and refined copper; plywood; and for copper and brass mill shapes fell less than in the prior month. By contrast, a 1.0-percent drop in flat glass prices was registered in February, following a 0.4-percent gain a month ago. The indexes for hardwood lumber, metal powders, and platinum also decreased, after rising in the previous month.

Crude Goods

Registering the largest one-month decrease in prices since the index's inception, the Producer Price Index for Crude Materials for Further Processing decreased 14.2 percent in February, seasonally adjusted, following a 13.9-percent gain in January. The indexes for crude energy materials, crude foodstuffs and feedstuffs, and basic industrial materials turned down, after advancing a month ago. (See table B.)

Prices for crude energy materials fell 23.3 percent in February, after registering a 25.0-percent gain in January. The index for natural gas declined 34.7 percent (the largest decrease on record), after rising 46.0 percent in the previous month. On the other hand, prices for coal moved up 12.8 percent, following a 3.0-percent decrease in January. The index for crude petroleum advanced 2.7 percent in February, after falling 10.6 percent in the prior month.

The index for crude foodstuffs and feedstuffs decreased 1.6 percent in February, following a 2.2-percent increase in January. Corn prices dropped 12.5 percent, after posting a 7.0-percent gain in the previous month. The indexes for fluid milk, wheat, and for fresh fruits and melons turned down in February, after advancing in the prior month. Prices for slaughter cattle rose at a slower rate in February than in January. The index for soybeans fell more than in the prior month. By contrast, prices for slaughter broilers and fryers moved up 4.3 percent, following a 0.3-percent rise in January. The indexes for unprocessed finfish, alfalfa hay, and raw cane sugar rose more in February than in the previous month. Prices for unprocessed shellfish turned up, after falling in January. The index for slaughter hogs decreased at a slower rate than in January.

Prices for crude nonfood materials less energy declined 2.5 percent in February, after registering a 0.5-percent increase in January. The index for iron and steel scrap fell 6.9 percent, following an 8.3-percent gain in the prior month. Prices for copper ores and aluminum base scrap turned down, after rising last month. The indexes for wastepaper and for softwood logs, bolts, and timber fell more than in January. On the other hand, raw cotton prices dropped 4.1 percent, after falling 8.8 percent in the previous month. The index for phosphates turned up, after decreasing a month ago. Prices for construction sand, gravel, and crushed stone rose at a higher rate than in January.

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

Mining. The Producer Price Index for the Net Output of Total Mining Industries dropped 19.1 percent in February, following a 22.3-percent increase in January. (Net output price indexes are not seasonally adjusted.) Most of February's downturn in prices can be traced to a 23.5- percent decrease in prices received by the crude petroleum, natural gas, and natural gas liquids industry, which followed a 27.9-percent rise in January. The index for the copper ores industry also turned down in February, after an increase in the prior month. Prices received by the oil and gas well drilling, coal mining services, and for construction sand and gravel industries rose less than in January. By contrast, the index for the bituminous coal and lignite industry turned up 8.9 percent in February, following a 1.6-percent decline in the previous month. Prices paid to the potash, soda, and borate minerals industry rose more than in January. In February, the Producer Price Index for the Net Output of Total Mining Industries stood at 138.2 (December 1984=100), 44.3 percent above its year- ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries showed no change in February, after increasing 0.2 percent in January. Rising prices paid to the chemical and allied products, printing and publishing, food and kindred products, and lumber and wood products industry groups offset falling prices paid to the transportation equipment, petroleum refining, paper and allied products, and electrical and electronic machinery industry groups. In February, the Producer Price Index for the Net Output of Total Manufacturing Industries stood at 134.7 (December 1984=100), 1.9 percent above its year-ago level.

Services. Among service industries in January, price increases were registered for the security brokers, operators and lessors of nonresidential buildings, offices of physicians, legal services, and hotels and motels industries. On the other hand, falling prices were observed for the telephone communications, except radiotelephone, help supply services, prepackaged software, and scheduled air transportation industries.

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 October 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.

See footnotes at end of table.

1/ The indexes for October 2000 have been recalculated to incorporate 2/ Not seasonally adjusted. late reports and corrections by respondents. All indexes are subject 3/ Not available. to revision 4 months after original publication.

1/ Data for October 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 October 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 October 2000 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.