September 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 increased 0.4 percent in September, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This advance followed a 0.4- percent rise in August and a 0.9-percent decline in July. The index for finished goods other than foods and energy turned up 0.3 percent in September, compared with a 0.1-percent decrease in the preceding month. At the earlier stages of processing, prices received by intermediate goods producers increased 0.1 percent, following a 0.4-percent drop in August. The crude goods index fell 4.1 percent in September, after posting a 2.3- percent decrease a month earlier. (See table A.) The reference date for the Producer Price Index is the Tuesday of the week containing the 13th day of the month. September's reference date was Tuesday, September 11; price changes that occurred subsequent to the reference date are not reflected in these data. Survey respondents provided data to the Bureau at approximately the same rate in September as they did in prior months.

Among finished goods in September, the index for finished consumer goods other than foods and energy rose 0.4 percent, following a 0.1-percent decline a month ago. Capital equipment prices edged up 0.1-percent in September, after decreasing 0.1 percent in the prior month. By contrast, the finished consumer foods index gained 0.2 percent, compared with a 0.9- percent increase in the previous month. Prices for finished energy goods advanced 0.9 percent in September, after rising 1.1 percent in August.

During the third quarter of 2001, the finished goods price index declined at a 0.8-percent seasonally adjusted annual rate (SAAR), after rising at a 0.3-percent rate during the second quarter of 2001. Leading this downturn, prices for finished energy goods fell at a 14.6-percent SAAR from June 2001 to September 2001, following a 6.1-percent rate of decrease from March 2001 to June 2001. On a SAAR basis, prices for finished goods other than foods and energy rose less during the third quarter than in the second quarter of 2001 -- 1.6-percent and 1.9-percent, respectively. Conversely, prices for finished consumer foods rose at a 2.0-percent SAAR from June to September, following a 0.9-percent rate of advance from March to June. The intermediate goods price index declined at a 5.1-percent SAAR during the third calendar quarter of 2001, after edging down at a 0.6- percent rate over the preceding calendar quarter. Third quarter crude goods prices fell at a 38.2 percent SAAR, compared with a 27.9-percent rate of decline from March to June. (See summary below.)

Seasonally adjusted annual rate for: Percentage 9 3 3 3 change 12 months months months months Grouping months ended ended ended ended ended in December in in in in Sept. Mar. June Sept. 1998 1999 2000 2001 2001 2001 2001

Crude materials for further processing -16.7 15.3 35.5 -29.9 -22.7 -27.9 -38.2 Foodstuffs and feedstuffs -11.0 -.1 7.4 3.9 15.6 -7.1 4.5 Crude energy materials -23.8 36.9 85.6 -52.6 -42.4 -43.7 -67.3 Crude nonfood materials less energy -16.0 14.0 -5.5 -10.2 -10.8 -13.7 -6.0 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 increased 0.4 percent, to stand at 141.7 (1982 = 100). From September 2000 to September 2001, prices for finished goods advanced 1.6 percent. During the same period, the index for finished consumer foods rose 4.0 percent and prices for finished goods other than foods and energy gained 1.4 percent. On the other hand, the finished energy goods index declined 0.5 percent for the 12 months ended September 2001. Prices for both intermediate goods and crude goods fell during the past 12 months -- down 0.8 percent and 14.3 percent, respectively.

Finished goods

Prices for finished consumer goods other than foods and energy increased 0.4 percent in September, compared to a 0.1-percent decline in August. The index for sanitary papers and health products advanced 3.0 percent, following a 0.9-percent decrease in the previous month. Prices for pharmaceutical preparations, light motor trucks, and for sporting and athletic goods also turned up in September. The indexes for passenger cars and alcoholic beverages rose more than they did in the preceding month. By contrast, women's apparel prices fell 0.2 percent, after posting a 0.7- percent gain in August. Price increases slowed from August to September for periodical circulation and book publishing. The men's and boys' apparel index declined more quickly than they did in the prior month. During the third quarter of 2001, the index for finished consumer goods other than foods and energy increased at a 1.8-percent SAAR, after advancing at a 2.3-percent rate for the second quarter of 2001.

Prices increases for finished energy goods slowed to 0.9 percent in September, following a 1.1-percent gain in August. The gasoline index rose at a less-rapid pace in September than it did in August -- up 6.3 percent, after advancing 8.7 percent. Prices for liquefied petroleum gas also increased less than they did a month earlier. The September index for residential electric power decreased slightly more in September than it did in August. On the other hand, prices for diesel fuel turned up 6.7 percent, following a 7.2-percent decline in the previous month. The home heating oil index rose more in September than it did a month earlier, while prices for residential natural gas fell less than they did in the previous month.

The index for finished consumer foods edged up 0.2 percent in September, after registering a 0.9-percent gain in August. Contributing to this slower rate of advance, prices for fresh and dry vegetables rose 2.4 percent, following a 15.9-percent increase in the prior month. The indexes for soft drinks, melons, shortening and cooking oils, and processed turkeys turned down in September. Prices for processed young chickens and confectionery end products advanced less than they did in the preceding month. The September indexes for beef and veal and for pork fell more than they did a month earlier. By contrast, prices for finfish and shellfish rose 3.4 percent, after declining 0.2 percent in August. The indexes for eggs for fresh use and for milled rice also turned up in September. Dairy product prices decreased less in September than they did in the previous month.

The capital equipment index edged up 0.1 percent in September, following a 0.1-percent decline in August. Prices for communication and related equipment increased 0.2 percent, after falling 1.1 percent in the prior month. The index for light motor trucks also turned up in September. Passenger car prices rose more than they did in August, while the electronic computers index decreased less than it did a month earlier. Heavy motor truck prices advanced, after showing no change in the preceding month. On the other hand, the civilian aircraft index declined 0.3 percent in September, following a 0.5-percent gain in August. Prices for x-ray and electromedical equipment and for agricultural machinery and equipment also turned down in September. The indexes for pumps and compressors and for welding machines and related equipment increased less than they did in the previous month. From June 2001 to September 2001, capital equipment prices rose at a 1.1-percent SAAR, after a 1.2-percent annual rate of advance from March 2001 to June 2001.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.1 percent in September, after declining 0.4 percent in August. Prices for intermediate energy goods turned up in September, following a decrease a month ago. The indexes for nondurable manufacturing materials and durable manufacturing materials declined at a slower rate than they did in the previous month. On the other hand, prices for intermediate foods and feeds turned down, compared with an increase in the prior month, while the construction materials index fell slightly, after showing no change in August. Prices for intermediate materials other than foods and energy decreased 0.1 percent, after posting a 0.4-percent decline in August. (See table B.)

The intermediate energy goods index increased 1.0 percent in September, following a 1.0-percent decrease in August. Prices for diesel fuel rose 6.7 percent, after dropping 7.2 percent a month ago. The indexes for residual fuel and commercial electric power turned up in September, after falling in August. Prices for industrial natural gas, jet fuels, and commercial natural gas decreased at a slower rate than they did in the prior month. By contrast, the gasoline index rose 6.3 percent in September, following an 8.7-percent gain in August. Prices for liquefied petroleum gas also increased at a slower rate than they did a month ago. The index for coke oven products decreased, after showing no change in the previous month. Prices for intermediate energy materials declined at a 14.3-percent SAAR during the third quarter of 2001, following a 2.2-percent rate of decrease in the previous quarter.

The nondurable manufacturing materials index fell 0.1 percent in September, after dropping 1.3 percent in August. Falling prices for plastic resins and materials, nitrogenates, paperboard, and inedible fats and oils slightly outweighed rising prices for industrial chemicals, phosphates, synthetic fibers, and paint materials. Nondurable manufacturing material prices fell at a 9.5-percent SAAR from June 2001 to September 2001, following a 7.2-percent rate of decrease during the second quarter of 2001.

The index for durable manufacturing materials declined 0.2 percent in September, following a 0.6-percent fall in August. In September, price decreases for aluminum mill shapes, plywood, building paper and board, hardwood lumber, and prepared paint outweighed price increases for primary aluminum (except extrusion billet); copper and brass mill shapes; hot rolled bars, plates, and structural shapes; semi-finished steel mill products, and cement. The durable manufacturing materials index decreased at a 6.5-percent SAAR during the third quarter of 2001, after declining at a 0.3-percent rate during the second quarter.

Prices for intermediate foods and feeds decreased 0.4 percent in September, after posting a 1.8-percent gain in August. The prepared animal feeds index fell 0.7 percent in September, following a 2.4-percent rise a month ago. Prices for crude vegetable oils and confectionery materials also turned down, after increasing in the previous month. The index for fluid milk products declined, after showing no change in August. Beef and veal prices fell more than they did in the prior month. The natural, processed, and imitation cheese index rose less than it did in August. By contrast, prices for flour increased 0.6 percent in September, following a 1.3-percent drop a month ago. The index for dry, condensed, and evaporated milk products turned up in September. Prices for refined sugar and butter rose at a faster pace than they did in the previous month. The intermediate foods and feed index increased at an 8.2-percent SAAR from June 2001 to September 2001, after rising at a 5.7-percent rate in the previous quarter.

The index for construction materials fell 0.1 percent in September, after showing no change in August. In September, price decreases for plastic construction products, plywood, nonferrous wire and cable, fabricated structural metal products, hardwood lumber, and softwood lumber outweighed price increases for gypsum products, asphalt felts and coatings, millwork, switchgear, and steel wire. The index for materials and components for construction declined at a 2.1-percent SAAR during the third quarter of 2001, following a 3.5-percent rate of increase during the second quarter.

Crude goods

The Producer Price Index for Crude Materials for Further Processing declined 4.1 percent in September, following a 2.3-percent decline in the previous month. The crude energy materials index dropped at a faster rate in September than it did in August. By contrast, the indexes for crude nonfood materials less energy and for crude foodstuffs and feedstuffs increased in September, after decreasing in August. (See table B.)

The crude energy materials index declined 10.7 percent in September, subsequent to a 4.4-percent fall in the preceding month. The sole contributor to this deceleration was the index for natural gas, which dropped 22.8 percent, following a 7.7-percent decline in August. On the other hand, the indexes for crude petroleum and coal turned up slightly in September, after declining in the prior month. From June 2001 to September 2001, prices for crude energy materials decreased at a 67.3-percent SAAR, following a 43.7-percent rate of decline in the second quarter.

Exhibiting an upturn after seven months of declining prices, the index for crude nonfood materials less energy rose 0.2 percent in September, following a 0.8 percent decline last month. The 4.7-percent increase in the hides and skins index, which comes after an 18.9-percent drop in August, explains a considerable portion of the reversal in basic industrial materials prices. Also adding to the overall acceleration, the index for nonferrous metal ores increased in September, following a decline in the previous month, while the index for aluminum base scrap fell less rapidly than it did in August. Partly offsetting this acceleration, iron and steel scrap prices dropped 0.6 percent in September following a 1.2-percent increase in the preceding month. Other offsetters included the indexes for construction sand, gravel, and crushed stone and hardwood logs, bolts, and timber. Prices for crude nonfood materials less energy decreased at a 6.0- percent SAAR in the third quarter of 2001, following a 13.7-percent rate of decline in the second quarter of 2001.

Following a 0.6-percent decline in August, the index for crude foodstuffs and feedstuffs increased 1.1 percent in September. The slaughter cattle index rose 0.5 percent in September, after falling 2.8 percent the prior month. The indexes for slaughter broilers and fryers and unprocessed shellfish also rose, following declines in the August. Prices for slaughter hogs fell less than in the previous month. By contrast, corn prices rose 0.1 percent in September, preceded by an 8.5-percent increase in August. The indexes for fresh and dry vegetables also increased at a slower pace than in the prior month. Prices for soybeans turned down in September. Following a 7.1-percent SAAR of decline during the second quarter of 2001, the index for crude foodstuffs and feedstuffs rose at a 4.5-percent rate during the third quarter.

Net Output for mining, manufacturing, and services industries

Mining. The Producer Price Index for the Net Output of Total Mining Industries fell 7.8 percent in September, following a 2.9-percent decrease in August. (Net Output prices are not seasonally adjusted.) Most of September's faster rate of decline can be traced to an 11.5-percent drop in prices received by the crude petroleum, natural gas, and natural gas liquids industry, compared with a 3.7-percent fall a month ago. The index for the crushed and broken limestone industry turned down, after rising in the prior month. Prices received by the oil and gas exploration services industry rose less than they did in August. The index for the potash, soda, and borate minerals fell, after rising in August. By contrast, prices received by the bituminous coal and lignite industry increased 2.9 percent in September, following a 1.2-percent decline in August. The indexes for the oil and gas well drilling, metal mining services, and the kaolin and ball clay industries turned up in September, after falling a month earlier. Prices received by the coal mining services industry increased at a faster rate than they did in the prior month. For the three months ended September 2001, the index for the net output of total domestic mining industries decreased at a 58.7-percent annual rate, following a 39.9- percent annual rate of decline during the second quarter of this year. In September, this index stood at 92.6 (December 1984=100), 25.7 percent below its year-ago level.

The Producer Price Index for the Net Output of Total Manufacturing Industries rose 0.6 percent in September, following a 0.1-percent increase in August. Leading this acceleration, prices received by the petroleum refining and related products industry group jumped 8.1 percent, after increasing 2.9 percent in the previous month. The industry group indexes for chemicals and allied products and for paper and allied products turned up, after falling a month ago. Prices received by the electrical and electronic machinery industry group and the transportation equipment industry group were unchanged, after declining in the prior month. On the other hand, the industry group index for food and kindred products showed no change in September, following a 0.6-percent increase in August. Prices received by the industry groups for printing, publishing, and allied industries, and for apparel and other related products turned down, after showing gains a month ago. The industry group index for machinery (except electrical) declined at a faster rate than it did in the previous month. Prices received by the industry group for measuring and controlling instruments rose less than they did in August. After decreasing at a 4.5- percent annual rate from March 2001 to June 2001, the index for the net output of total domestic manufacturing industries declined at a 1.2-percent rate from June 2001 to September 2001. In September, the Producer Price Index for the Net Output of Total Manufacturing Industries stood at 135.6, 0.7 percent above its year-ago level.

Services. Among services industries in September, advancing prices were registered by the industries for deep sea foreign transportation of freight, property and casualty insurance, skilled and intermediate care facilities, telephone communications (except radiotelephone), general medical and surgical hospitals, and medical laboratories. On the other hand, the industries for operators and lessors of nonresidential buildings; real estate agents and managers; hotels and motels; travel agencies; airports, flying fields, and airport services; and courier services (except by air) experienced falling prices.

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 2001 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 May 2001 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 May 2001 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 for some items in this grouping are lagged 1 month. 3/ Not available.

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 2001 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.

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 2001 have been recalculated to incorporate late reports and corrections by respondents. 2/ Includes crude petroleum. 3/ Excludes crude petroleum.