March 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 down 0.1 percent in March, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decline followed a 0.1-percent rise in February and a 1.1-percent advance in January. The index for finished goods other than foods and energy edged up 0.1 percent in March, following a 0.3-percent decrease in the prior month. Prices received by producers of intermediate goods fell 0.2 percent in March, following a 0.1- percent decrease in the prior month. The crude goods index declined 1.7 percent, after dropping 14.2 percent in February. (See table A.)

Among finished goods, prices for energy goods turned down 2.6 percent in March, compared with a 1.4-percent increase in the previous month. Conversely, the index for finished consumer goods other than foods and energy rose 0.3 percent, after falling 0.4 percent in February. Prices for finished consumer foods rose more than they did a month earlier. The capital equipment index showed no change in March, after falling 0.3 percent in the prior month.

During the first quarter of 2001, the Finished Goods Price Index moved up at a seasonally adjusted annual rate (SAAR) of 4.9 percent, following a 2.9-percent rate of increase during the fourth quarter of 2000. Finished consumer food prices moved up at a 10.6-percent SAAR during the first quarter of 2001, following a 2.4-percent annual rate of increase from September 2000 to December 2000. Prices for finished goods other than foods and energy advanced at a 1.9-percent SAAR for the first three months of 2001, after showing no change during the prior quarter. By contrast, the index for finished energy goods rose at a 10.8-percent SAAR from December 2000 to March 2001, after increasing at a 13.8-percent annual rate over the last three months of 2000. Prices for Intermediate Materials, Supplies, and Components advanced at a 1.5-percent SAAR, for the second consecutive calendar quarter. During the first quarter of 2001, the Producer Price Index for Crude Materials for Further Processing decreased at a SAAR of 14.9 percent, following a 39.8-percent rate of increase in the final quarter of 2000. (See summary below.)

Seasonally adjusted annual rate for: Percentage 3 3 3 3 change 12 months months months months Grouping months ended ended ended ended ended in December in in in in June Sep. Dec. Mar. 1998 1999 2000 2000 2000 2000 2001

Crude materials for further processing -16.7 15.3 31.6 47.9 4.9 39.8 -14.9 Foodstuffs and feedstuffs -11.0 -.1 7.2 -7.3 -8.2 36.0 15.2 Crude energy materials -23.8 36.9 76.0 163.6 20.0 64.0 -31.0 Crude nonfood materials less energy -16.0 14.0 -5.8 -11.9 -8.8 -10.2 -12.4 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 fell 0.4 percent in March to stand at 141.0 (1982=100). From March 2000 to March 2001, the Finished Goods Index increased 3.1 percent. Over the same period, the index for finished energy goods advanced 9.7 percent, prices for finished consumer foods increased 3.6 percent, and the index for finished goods other than foods and energy gained 1.4 percent. Prices received by domestic producers of intermediate goods rose 2.3 percent for the 12 months ended in March 2001, and the index for crude goods jumped 16.5 percent during the same period.

Finished goods

Prices for finished energy goods fell 2.6 percent in March, following a 1.4-percent gain in February. After registering a 9.2-percent increase in February, the index for liquefied petroleum gas declined 16.4 percent. Prices for residential natural gas and finished lubricants also turned down in March, after rising in the previous month. March's index for residential electric power increased at a slower rate than it did in February. Prices for home heating oil fell more in March than they did in the prior month. By contrast, gasoline prices moved up 0.5 percent in March, following a 0.8-percent decline in February.

The index for finished consumer goods other than foods and energy rose 0.3 percent in March, after decreasing 0.4 percent in February. Prices for light motor trucks increased 0.5 percent, following a 3.6-percent drop in the previous month. The indexes for passenger cars, alcoholic beverages, and for sanitary papers and health products also turned up in March. Prescription drug prices rose more in March than they did in February. On the other hand, the index for floor coverings moved down 2.8 percent in March, after increasing 1.4 percent in the prior month. March prices for women's apparel and pet food also turned down, after rising a month earlier. The index for household appliances fell more than it did in February. During the first quarter of 2001, the index for finished consumer goods other than foods and energy increased at a SAAR of 2.9 percent, following a 0.3-percent rate of increase in the final quarter of 2000.

Prices for finished consumer foods advanced 1.1 percent in March, following a 0.6-percent gain in February. The dairy products index rose 2.2 percent, after registering a 0.7-percent decrease a month ago. Price increases for pork and bakery products accelerated from February to March. The indexes for fresh fruits and melons and for soft drinks turned up, following declines in the prior month. Beef and veal prices moved up in March, after showing no change in the previous month. On the other hand, the finfish and shellfish index posted a 5.3-percent drop in March, following a 9.3-percent advance in February. Prices for processed young chickens and for fresh and dry vegetables rose less in March they did a month earlier. The indexes for eggs for fresh use, processed fruits and vegetables, and processed turkeys turned down, after increasing in the previous month.

The capital equipment index showed no change in March, after decreasing 0.3 percent in February. Price increases for passenger cars, light motor trucks, civilian aircraft, heavy motor trucks, and commercial furniture were offset by falling prices for electronic computers; tools, dies, jigs, fixtures, and industrial molds; office and store machines and equipment; pumps, compressors, and equipment; and x-ray and electromedical equipment. The capital equipment index showed no change on a seasonally adjusted annual rate basis during the first quarter of 2001, following a 0.3-percent rate of increase in the final quarter of 2000.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components declined 0.2 percent in March, seasonally adjusted, after edging down 0.1 percent in February. Decreasing prices for intermediate energy goods, nondurable manufacturing materials, and durable manufacturing materials outweighed increasing prices for intermediate foods and feeds and materials and components for construction. Excluding foods and energy, the index for intermediate materials, supplies, and components inched up 0.1 percent for the second consecutive month. (See table B.)

Prices for intermediate energy goods fell 1.4 percent in March, after dipping 1.1 percent in February. The commercial natural gas index dropped 8.7 percent, following a 13.5-percent rise a month earlier. Liquefied petroleum gas prices also turned down in March. The indexes for industrial natural gas and diesel fuel decreased more in March than they did in the previous month. By contrast, commercial electric power prices increased 2.6 percent in March, after declining 2.6 percent in the prior month. The indexes for industrial electric power, gasoline, and jet fuels also turned up, following February decreases. Price declines slowed from February to March for natural gas to electric utilities and residual fuels. The intermediate energy goods index advanced at a 2.2-percent SAAR from December 2000 to March 2001, after registering an 11.0-percent rate of increase during the previous three months.

Prices for nondurable manufacturing materials fell 0.3 percent in March, following a 0.7-percent gain in the prior month. Leading this deceleration, the index for primary basic organic chemicals declined 9.2 percent, after rising 2.8 percent in February. Prices for basic inorganic chemicals and synthetic fibers also moved down, following increases a month earlier. The fertilizer materials index advanced less in March than it did in the previous month. The rate of decrease in prices for woodpulp and intermediate basic organic chemicals quickened in March. Conversely, the paperboard index dipped 0.3 percent, after posting a 1.6-percent drop in February. Paper prices increased, after showing no change in the prior month. The indexes for paint materials and medicinal and botanical chemicals turned up, following February declines. Prices for nondurable manufacturing materials rose at a seasonally adjusted annual rate of 6.4 percent during the first quarter of 2001, after falling at a 0.3-percent annual rate for the previous quarter.

The index for durable manufacturing materials decreased at a 0.2- percent rate in March, the same rate of decline observed in February. Falling prices for steel mill products, copper and brass mill shapes, primary aluminum (except extrusion billet), copper cathode and refined copper, and silver outweighed rising prices for plywood, prepared paint, aluminum mill shapes, gold, and flat glass. From December 2000 to March 2001, the index for materials for durable manufacturing decreased at a 4.3- percent SAAR, following a 3.7-percent annual rate of decline during the final quarter of 2000.

Intermediate foods and feeds prices turned up 0.5 percent in March, after falling 1.5 percent in February. The index for fluid milk products gained 1.8 percent, following a 3.5-percent decrease in the previous month. Prices for crude vegetable oils also rose, after declining in February. The index for prepared animal feeds fell less in March than it did a month earlier. Beef and veal prices advanced, after showing no change in February, while the pork index increased at a faster rate than in the prior month. By contrast, a 2.1-percent drop in refined sugar prices was registered in March, following a 2.5-percent rise in the previous month. During the first quarter of 2001, the intermediate foods and feeds index advanced at a 2.8-percent SAAR, after increasing at a 10.1-percent annual rate during the prior quarter.

In March, the index for materials and components for construction edged up 0.1 percent, following a 0.3-percent gain a month earlier. Advancing prices for gypsum products, plywood, softwood lumber, millwork, and metal valves (except fluid power) more than offset declining prices for plastic construction products, fabricated structural metal products, heating equipment, nonferrous wire and cable, and steel wire. From December 2000 to March 2001, the index for materials and components for construction increased at a 0.3-percent SAAR, after decreasing at a 0.5- percent annual rate for the previous quarter.

Crude Goods

The Producer Price index for Crude Materials for Further Processing fell 1.7 percent in March, seasonally adjusted, following a 14.2-percent decline in February. Prices for crude energy materials decreased less in March than they did in the previous month. The crude foodstuffs and feedstuffs index turned up, after falling in the prior month. Basic industrial materials prices declined at a slower rate in March than they did in February. (See table B.)

Prices for crude energy materials posted a 4.9-percent decrease in March, following a 23.3-percent decline in February. The natural gas index fell 4.7 percent, after dropping 34.7 percent in the prior month. On the other hand, crude petroleum prices decreased 7.1 percent, after gaining 2.7 percent a month ago. The coal index declined 0.4 percent, after rising 12.8 percent in February. Prices for crude energy materials fell at a 31.0- percent SAAR from December 2000 to March 2001, following a 64.0-percent annual rate of increase from September 2000 to December 2000.

The crude foodstuffs and feedstuffs index advanced 3.0 percent in March, following a 1.6-percent decline in the prior month. Prices for slaughter hogs posted a 13.8-percent increase, after falling 3.9 percent in the previous month. The indexes for corn, fluid milk, soybeans, and wheat turned up, after decreasing in February. Slaughter cattle prices rose more in March than they did in February. By contrast, the index for unprocessed finfish dropped 28.2 percent, after gaining 49.8 percent in February. Prices for raw cane sugar, alfalfa hay, and slaughter turkeys turned down, after advancing in the prior month. The indexes for slaughter broilers and fryers and fresh vegetables, except potatoes increased at a slower rate in March than they did in February. From December 2000 to March 2001, prices for crude foodstuffs and feedstuffs rose at a 15.2-percent SAAR, following a 36.0-percent annual rate of increase in the final quarter of 2000.

The index for basic industrial materials fell 1.3 percent, following a 2.5-percent decline in February. Wastepaper prices decreased 4.0 percent, after falling 8.3 percent in the previous month. The indexes for iron and steel scrap, gold ores, and aluminum base scrap turned up, after declining in February. Prices for softwood logs, bolts, and timber decreased at a slower rate in March than they did in February. On the other hand, the index for raw cotton posted a 16.4-percent decline, after falling 4.1 percent a month ago. Prices for leaf tobacco turned down, after rising in February. The index for copper base scrap fell more than it did in the previous month. Prices for construction sand, gravel, and crushed stone and pulpwood rose at a slower rate in March than they did in February. The basic industrial materials index fell at a 12.4-percent SAAR from December 2000 to March 2001, following a 10.2-percent rate of decrease in the final quarter of 2000.

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

Mining. The Producer Price Index for the Net Output of Total Mining Industries declined 5.4 percent in March, after falling 19.1 percent in the previous month. (Net output price indexes are not seasonally adjusted.) Dominating this slowdown in the rate of decrease in mining industry prices, the index for the crude petroleum, natural gas, and natural gas liquids industry fell 6.9 percent, following a 23.5-percent drop in February. Also contributing, prices received by the gold ores industry turned up 2.9 percent, after declining 1.7 percent in the prior month. The index for the copper ores industry decreased less than it did a month earlier. By contrast, prices received by the bituminous coal and lignite industry edged down 0.4 percent, following an 8.9-percent jump in February. The index for the oil and gas well drilling industry gained less in March than it did in the previous month. From December 2000 to March 2001, the Producer Price Index for the Net Output of Total Domestic Mining Industries declined at a 23.2-percent annual rate, after rising at a 57.1-percent rate in the prior calendar quarter. In March 2001, this index stood at 130.7 (December 1984=100), 32.2 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries edged down 0.1 percent in March, after showing no change in February. Declining prices paid to the industry groups for petroleum refining and related products; measuring and controlling instruments; textile mill products; electrical and electronic machinery, equipment, and supplies; and primary metal industries slightly outweighed advancing prices paid to the industry groups for food and kindred products; chemicals and allied products; rubber and miscellaneous plastic products; printing, publishing, and allied industries; and lumber and wood products (except furniture). During the first quarter of 2001, the Producer Price Index for the Net Output of Total Domestic Manufacturing Industries advanced at a 0.6-percent annual rate, following a 0.9-percent annual rate of decline from September 2000 to December 2000. In March 2001, this index stood at 134.6 (December 1984=100), 1.3 percent above its year-ago level.

Services. Among service industries in March, rising prices were registered by the industries for operators and lessors of nonresidential buildings, offices of physicians, property and casualty insurance, scheduled air transportation, general medical and surgical hospitals, and hotels and motels. By contrast, prices received by the industries for deep sea foreign transportation of freight, wireless telecommunications, real estate agents and managers, trucking (except local), specialty hospitals (except psychiatric), and home health care services fell in March.

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 November 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.

1/ The indexes for November 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. Table 3. Producer price indexes for selected commodity groupings (1982=100 unless otherwise indicated)

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