April 2003 Producer Price Index

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The Producer Price Index for Finished Goods declined 1.9 percent in April, seasonally adjusted, the Bureau of Labor Statistics reported today. This record decrease followed three consecutive increases: 1.7 percent in January, 1.0 percent in February, and 1.5 percent in March. At the earlier stages of processing, prices for intermediate goods fell 2.2 percent in April, after rising 2.0 percent in the previous month. The crude goods index decreased 16.3 percent, following a 13.3-percent gain in March. (See table A.)

The majority of the April decline in the Producer Price Index for Finished Goods was due to prices for finished energy goods, which declined 8.6 percent after posting a 5.7-percent increase in March. (Excluding prices for energy goods, the finished goods index declined 0.5 percent in April.) The April index for finished goods other than foods and energy dropped 0.9 percent, compared with an increase of 0.7 percent in March. The April decline in this index was the largest since a 1.2-percent decrease in August 1993 and can be traced to lower prices for passenger cars, light trucks, and cigarettes. (Excluding prices for passenger cars, light trucks, and cigarettes, prices for finished goods other than foods and energy rose 0.2 percent in April.) On the other hand, the finished consumer foods index moved up 0.9 percent, after rising 0.1 percent in March.

Before seasonal adjustment, the Producer Price Index for Finished Goods fell 1.7 percent from March to April to 142.1 (1982 = 100). From April 2002 to April 2003, prices for finished goods rose 2.4 percent. During the same period, the finished energy goods index jumped 12.2 percent. The index for finished consumer foods rose 3.4 percent, and the index for capital equipment advanced 0.1 percent from April 2002 to April 2003. By contrast, prices for finished consumer goods other than foods and energy declined 0.4 percent for the 12 months ended April 2003. At the earlier stages of processing, intermediate goods prices grew 4.7 percent and the crude goods index climbed 18.0 percent.

Finished goods

The index for finished energy goods moved down 8.6 percent in April, after posting a 5.7-percent gain in the prior month. The gasoline index plunged 22.3 percent, following a 4.6-percent increase in March. Prices for residential natural gas, home heating oil, liquefied petroleum gas, and diesel fuel also turned down in April. The finished lubricants index advanced 0.8 percent in April, following a 0.1-percent rise in the previous month, slightly offsetting the downturn in the finished energy goods index.

Prices for finished consumer goods other than foods and energy turned down 1.3 percent in April, compared with a 0.7-percent advance in the preceding month. The index for light motor trucks fell 4.6 percent, after rising 5.2 percent in March. Prices for passenger cars, men's and boys' apparel, compact discs, and cigarettes also turned down in April. The alcoholic beverages index remained unchanged, following an increase in March. On the other hand, prices for sanitary papers and health products rose 2.1 percent, after falling 5.2 percent a month earlier. The pharmaceutical preparations index rose at a faster rate in April than it did in March. Prices for household appliances, periodical circulation, and book publishing turned up, following decreases in March.

The capital equipment index declined 0.5 percent in April, after advancing 0.8 percent in the previous month. Leading this downturn, prices for light motor trucks declined 4.6 percent, after posting a 5.2-percent gain in March. The indexes for passenger cars and for integrating and measuring instruments also moved down, following increases in the prior month. The index for tools, dies, jigs, fixtures, and industrial molds fell in April, after remaining unchanged in March. Prices for truck trailers and ships posted no change this month, following increases in the preceding month. Conversely, the communication and related equipment index remained unchanged in April, compared with a 0.4-percent decline in the previous month. The electronic computers index moved down at a slower pace in April than it did in March. Prices for commercial furniture, plastic working machinery, and for construction machinery and equipment turned up in April.

The finished consumer foods index increased 0.9 percent in April, following a 0.1-percent gain in the prior month. Prices for fresh fruits and melons turned up 4.7 percent, compared with a 9.3-percent decline in March. The indexes for dairy products, pork, beef and veal, and bakery products also turned up in April. Finfish and shellfish prices advanced at a faster rate in April than they did a month earlier. On the other hand, the index for fresh and dry vegetables moved up 9.0 percent, after jumping 15.9 percent in March. Prices for processed young chickens turned down in April.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components dropped 2.2 percent in April, following a 2.0-percent advance in March. Accounting for most of this reversal, prices for intermediate energy goods decreased, after rising in the previous month. The index for nondurable manufacturing materials also turned down in April. Conversely, prices for materials and components for construction increased in April, after edging down in the preceding month. The index for materials for durable manufacturing was unchanged in April, following a March decline. Prices for intermediate foods and feeds inched up, after falling a month earlier. The index for intermediate goods other than foods and energy showed no change in April, following a 0.2-percent gain in March. (See table B.)

After increasing 10.2 percent in March, the April index for intermediate energy goods decreased 11.2 percent. The index for industrial natural gas fell 8.8 percent in April, after rising 24.8 percent in the prior month. Prices for natural gas to electric utilities, commercial natural gas, and refined petroleum products also moved down in April, following March increases. By contrast, the index for commercial electric power climbed 1.6 percent, compared with a 0.9-percent rise a month earlier.

Prices for materials for nondurable manufacturing decreased 1.0 percent in April, after advancing 0.7 percent in March. The primary basic organic chemicals index dropped 20.9 percent, following a 1.0-percent increase in the preceding month. Prices for inedible fats and oils, aluminum compounds, and paint materials also fell, after moving up a month earlier. The fertilizer materials index rose at a slower pace in April than it did in March. On the other hand, prices for plastic resins and materials jumped 7.1 percent in April, following a 0.1-percent decline in the previous month. The indexes for gray fabrics, paper, and woodpulp also turned up in April.

The index for materials and components for construction advanced 0.2 percent in April, after inching down 0.1 percent in March. Prices for gypsum products went up 5.1 percent, following a 3.0-percent decline in the prior month. The indexes for mineral wool for structural insulation, treated wood, and paving mixtures and blocks also rose, after falling in March. Prices for softwood lumber, steel mill products, and plywood declined less in April than they did a month earlier. By contrast, prices for concrete products turned down 0.5 percent in April, following a 0.1- percent increase in March. The indexes for fabricated structural metal products, cement, and wiring devices also fell, after advancing in the previous month.

Prices for materials for durable manufacturing were unchanged in April, compared with a 0.3-percent decrease in March. The index for building paper and board rose 4.8 percent, after falling 3.1 percent in the prior month. Prices for copper and brass mill shapes and for unprocessed filament yarns also turned up in April. The steel mill products index fell less in April than it did in March. By contrast, the index for primary nonferrous metals decreased 4.4 percent in April, following a 0.4-percent gain in March. Prices for cement, automobile stampings, and flat glass also turned down.

Prices for intermediate foods and feeds edged up 0.1 percent in April, after a 0.2-percent dip in March. The index for dairy products advanced 0.7 percent, after declining 1.0 percent in the previous month. Prices for pork, shortening and cooking oils, beef and veal, and confectionery materials also turned up in April. The indexes for crude vegetable oils and flour fell at a slower rate than they did a month earlier. By contrast, prices for prepared animal feeds moved down 0.7 percent in April, following a 0.7-percent increase in March. The index for processed young chickens also turned down in April, after rising in the prior month.

Crude goods

The Producer Price Index for Crude Materials for Further Processing fell a record 16.3 percent in April, following a 13.3-percent gain in the previous month. Prices for crude energy materials and basic industrial materials turned down, after advancing in March. By contrast, the crude foodstuffs and feedstuffs index moved up, following a decline in the prior month. (See table B.)

Prices for crude energy materials decreased 31.1 percent in April, compared with a 30.5-percent increase in the previous month. The index for natural gas plummeted 39.1 percent, following a 51.0-percent jump in March. Prices for crude petroleum dropped 21.5 percent in April, after moving up 3.3 percent a month earlier. On the other hand, the coal index rose 3.7 percent in April, following a 1.0-percent advance in the prior month.

Prices for crude nonfood materials less energy declined 1.3 percent in April, compared with a 1.0-percent increase in the previous month. The iron and steel scrap index fell 1.9 percent, after posting a 5.1-percent gain in March. Copper base scrap prices also turned down in April. Prices for wastepaper and raw cotton moved up at a slower pace in April than they did in March. The indexes for leaf tobacco and gold ores decreased more than they did a month earlier. By contrast, the index for pulpwood advanced 0.7 percent in April, after falling 0.4 percent in the previous month. Hardwood logs, bolts, and timber prices also rose, following a decline in the prior month.

The crude foodstuffs and feedstuffs index turned up 0.9 percent in April, after declining 2.3 percent in the prior month. Slaughter cattle prices moved up 3.4 percent, compared with a 1.1-percent decrease a month earlier. The indexes for corn, unprocessed finfish, and fresh fruits and melons also rose, after falling in March. Prices for fluid milk and wheat declined at a slower rate in April than they did in the previous month. The soybeans index advanced more than it did in March. Alternatively, prices for slaughter broilers and fryers declined 6.0 percent, following a 0.7-percent decrease in the prior month. The indexes for alfalfa hay and unprocessed shellfish turned down, after rising in the previous month. Slaughter hog prices decreased at a faster pace than they did in March. The index for fresh and dry vegetables increased less in April than it did in the prior month.

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

Mining. The Producer Price Index for the Net Output of Total Mining Industries dropped 27.5 percent in April, after climbing 24.3 percent in the previous month. (Net output price indexes are not seasonally adjusted.) Prices received by the crude petroleum and natural gas industry declined 34.2 percent, compared with a 29.7-percent gain in March. The industry indexes for natural gas liquids and natural gas residue; bituminous coal underground mining; and kaolin and ball clay also turned down, after rising in the prior month. Prices received by the gold ores industry fell at a faster pace than they did a month earlier. By contrast, the industry index for oil and gas well drilling inched down 0.1 percent in April, following a 1.6-percent decrease in the previous month. Prices received by the bituminous coal and lignite surface mining, construction sand and gravel, and crushed and broken limestone industries rose more than they did in March. The index for the oil and gas field exploration services industry turned up, after falling in the prior month. In April, the Producer Price Index for the Net Output of Total Mining Industries was 123.9 (December 1984=100), 24.1 percent above its year-ago level.

Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries moved down 1.8 percent in April, compared with a 0.8-percent increase in the previous month. Leading this deceleration, the petroleum refining and related products industry group index dropped 18.7 percent, after posting a 5.6-percent gain in March. The industry group indexes for transportation equipment, tobacco manufactures, fabricated metal products (except machinery and transportation equipment), and apparel and related products also turned down, following increases in the previous month. The April rubber and miscellaneous plastic products industry group index rose less than it did in March. On the other hand, the industry group index for chemicals and allied products advanced 2.0 percent in April, after climbing 1.0 percent in the prior month. The industry group indexes for paper and allied products, food and kindred products, lumber and wood products (except furniture), and machinery (except electrical) turned up, following declines in March. In April, the Producer Price Index for the Net Output of Total Manufacturing Industries was 136.4 (December 1984=100), 1.9 percent above its year-ago level.

Services. Among service industries in April, prices received by the industries for general medical and surgical hospitals, offices of physicians, property and casualty insurance, scheduled air transportation, real estate agents and managers, and railroads (line haul operating) increased. Alternatively, the industry indexes for hotels and motels, telephone communications (except radiotelephone), operators and lessors of nonresidential buildings, trucking (except local), wireless telecommunications, and deep sea foreign transportation of freight fell in April.

NAICS Conversion

The net output price indexes will be converted from the 1987 Standard Industrial Classification (SIC) basis to the 2002 North American Industry Classification System (NAICS) basis with the February 2004 release of January 2004 indexes. The NAICS conversion involves major definitional changes to many of the currently published SIC-based indexes. After the conversion to NAICS, SIC-based indexes will no longer be produced or published. Historical index data based on the NAICS publication structure will be available depending on the scope of the definitional changes between SIC and NAICS.