Producer Price Index News Release text
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http://stats.bls.gov/ppihome.htm DECEMBER 14, 2000
Producer Price Indexes -- November 2000
The Producer Price Index for Finished Goods advanced 0.1 percent in
November, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today. This index rose 0.4 percent in October
and 0.9 percent in September. The index for finished goods other than
foods and energy showed no change in November, following a 0.1-percent
decline in the prior month. Prices received by manufacturers of
intermediate goods decreased 0.2 percent, after a 0.2-percent gain a month
earlier. The crude goods index fell 2.0 percent, following a 3.4-percent
increase in the previous month. (See table A.)
Table A. Monthly and annual percent changes in selected stage-of-processing price
indexes, seasonally adjusted
______________________________________________________________________________________
| | | | |
| | Finished goods | | |
| | | | |
| |---------------------------------------------------------| | |
| | | | | | Change in | | |
| | | | | Except |finished goods| Inter- | |
| | | | |foods and|from 12 months| mediate | Crude |
| Month | Total | Foods | Energy | energy | ago(unadj.) | goods | goods |
|--------------------------------------------------------------------------------------|
1999
Nov. 0.1 -0.2 1.1 -0.1 3.1 0.2 5.2
Dec. .1 0 .7 .1 2.9 .3 -4.9
2000
Jan. .1 .2 .9 -.2 2.5 .5 2.6
Feb. 1.1 .5 5.3 .3 4.0 .9 3.9
Mar. .7 .1 4.4 .1 4.3 .9 2.2
Apr. -.4 1.1 -3.9 .1 3.6 -.1 -1.5
May .1 -.2 -.2 .3 3.7 -.1 3.0
June .9 -.2 6.4 0 4.4 .9 8.4
July r.1 r-.1 r-.2 .1 r4.3 r.4 r-2.4
Aug. r-.4 r-.8 r-1.4 .1 3.3 r-.4 r-3.0
Sept. .9 .4 3.7 .3 3.3 .7 5.3
Oct. .4 .8 1.4 -.1 3.6 .2 3.4
Nov. .1 .2 .4 0 3.7 -.2 -2.0
r=revised. Some of the figures shown above and elsewhere in this release may differ
from those previously reported because data for July 2000 have been revised to reflect
the availability of late reports and corrections by respondents.
-2-
Among finished goods, the finished energy goods index rose 0.4 percent
in November, after increasing 1.4 percent a month ago. Prices for finished
consumer foods slowed to a 0.2-percent rate of increase, following a 0.8-
percent advance a month earlier. The index for finished consumer goods
other than foods and energy edged down, after showing no change a month
ago. Capital equipment prices were unchanged for the second consecutive
month.
For the first 11 months of 2000, the Producer Price Index for Finished
Goods increased at a 3.9-percent seasonally adjusted annual rate (SAAR),
after rising 2.9 percent in 1999. Prices for finished goods other than
foods and energy rose at a 1.0-percent SAAR for the first 11 months of
2000, after posting a 0.9-percent gain for the previous calendar year. The
index for intermediate goods advanced at a 4.2-percent SAAR from December
1999 to November 2000, following a 3.7-percent rise during 1999. Prices
for crude goods increased at a 23.0-percent SAAR during the first 11 months
of 2000, after a 15.3-percent gain for the prior calendar year.
Before seasonal adjustment, the Producer Price Index for Finished
Goods declined 0.1 percent to stand at 139.9 (1982 = 100). From November
1999 through November 2000, prices for finished goods advanced 3.7 percent.
During the same period, the finished energy goods index jumped 18.8
percent, prices for finished goods other than foods and energy rose 1.0
percent, and the index for finished consumer foods increased 2.0 percent.
Prices received by manufacturers of intermediate goods gained 4.2 percent
for the 12 months ended in November, and the crude goods index advanced
14.9 percent during the same period.
Table B. Monthly and annual percent changes in selected price indexes for
intermediate goods and crude goods, seasonally adjusted
__________________________________________________________________________________
| | | |
| | Intermediate goods | Crude goods |
| | | |
| |---------------------------------------------------------------------------|
| | | | |Change in | | | | Change |
| | | | | interme- | | | |in crude |
| | | | | diate | | | | goods |
| | | | |goods from| | | | from 12 |
| | | |Excluding|12 months | | |Excluding| months |
| | | |foods and|months ago| | Energy |foods and| ago |
|Month | Foods | Energy | energy | (unadj.) | Foods | (unadj.)| energy |(unadj.) |
|----------------------------------------------------------------------------------|
1999
Nov. -0.6 1.8 0.1 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
2000
Jan. .1 1.8 .4 4.1 .7 4.7 2.3 17.4
Feb. .5 4.3 .3 5.4 .6 8.9 .6 25.1
Mar. 1.0 3.6 .4 5.9 3.6 2.3 -.5 26.9
Apr. .8 -2.8 .4 5.3 1.5 -4.5 -1.0 22.2
May .7 -1.0 .1 5.0 -1.4 8.8 -.2 19.0
June .2 5.1 .1 5.5 -2.7 22.6 -1.6 29.0
July -.7 r1.4 .2 r5.2 -2.9 r-2.3 r-1.6 r25.3
Aug. -2.5 r-.8 -.1 4.3 -4.5 r-2.7 r-1.4 15.6
Sept. 1.1 4.1 0 4.5 3.9 8.1 .3 16.3
Oct. .6 1.1 0 4.6 3.5 4.6 -.6 23.4
Nov. 0 0 -.1 4.2 1.3 -4.1 -2.3 14.9
r=revised. Some of the figures shown above and elsewhere in this release may
differ from those previously reported because data for July 2000 have been revised
to reflect the availability of late reports and corrections by respondents.
-3-
Finished goods
The finished energy goods index increased 0.4 percent in November,
after registering a 1.4-percent gain in October. Residential natural gas
prices rose 1.2 percent, following a 5.2-percent advance in the prior
month. The index for liquefied petroleum gas also increased less than a
month earlier. Prices for residential electric power turned down, after
rising in the previous month. By contrast, the gasoline index advanced 1.4
percent in November, following a 1.8-percent decline in October. Prices
for diesel fuel and finished lubricants also moved up, after decreasing a
month ago. The home heating oil index fell less than in the previous
month.
The finished consumer foods index edged up 0.2 percent, following a
0.8-percent gain in October. In November, rising prices were observed for
dairy products, fresh and dry vegetables, pork, soft drinks, bakery
products, and for beef and veal. On the other hand, the indexes for eggs
for fresh use, finfish and shellfish, fresh fruits and melons, roasted
coffee, and for processed fruits and vegetables exhibited falling prices in
November.
The index for finished consumer goods other than foods and energy
edged down 0.1 percent in November, after posting no change in October. In
November, declining prices for prescription drugs, sanitary papers and
health products, alcoholic beverages, and women's apparel slightly
outweighed rising prices for newspaper circulation; cosmetics and other
toilet preparations; book publishing; men's and boys' apparel; and girls',
children's, and infants' apparel.
The capital equipment index showed no change for the second
consecutive month. November price increases for civilian aircraft,
passenger cars, commercial furniture, construction machinery and equipment,
agricultural machinery and equipment were offset by price declines for x-
ray and electromedical equipment, communication and related equipment,
transformers and power regulators, light motor trucks, heavy motor trucks,
electronic computers, and for office and store machines and equipment.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and
Components declined 0.2 percent in November, after posting a 0.2-percent
gain in October. Prices for intermediate energy goods showed no change,
after increasing in the previous month. The indexes for durable
manufacturing materials fell more than a month ago. Prices for nondurable
manufacturing materials turned down, following an increase in October. The
intermediate foods and feeds index showed no change, after advancing in the
prior month. Construction material prices fell at a slightly faster pace
in November than in October. Excluding foods and energy, the intermediate
materials index declined, after showing no change in September and October.
(See table B.)
Prices for intermediate energy goods showed no change in November,
after registering a 1.1-percent increase in October. The index for
commercial electric power declined 0.5 percent, following a 1.2-percent
advance in the prior month. Prices for residual fuels, commercial natural
gas, and industrial natural gas also turned down in November, after rising
last month. In November, the indexes for liquefied petroleum gas and
industrial electric power rose at a slower pace than in October. By
contrast, the gasoline index increased 1.4 percent, following a 1.8-percent
drop in October. Diesel fuel prices also turned up, after falling a month
ago. The index for jet fuels fell less than in the previous month.
-4-
The durable manufacturing materials index dropped 1.1 percent in
November, following a 0.2-percent decrease in October. Prices for steel
mill products decreased 1.6 percent, after showing no change last month.
The index for primary aluminum (except extrusion billet) also fell,
following no change in October. Prices for aluminum mill shapes, copper
and brass mill shapes, and plywood turned down, after rising a month
earlier. By contrast, the index for building paper and board edged down
0.2 percent in November, following a 0.8-percent decline in October.
Similarly, prices for flat glass and zinc fell less than in the prior
month.
Prices for materials for nondurable manufacturing edged down 0.1
percent in November, following a 0.1-percent increase in October. Prices
for primary basic organic chemicals dropped 4.2 percent, after registering
a 0.2-percent gain in the previous month. The indexes for fertilizer
materials and paper rose less than in the prior month. On the other hand,
prices for caustic soda advanced 18.2 percent in November, after rising 1.8
percent in October. The indexes for sulfuric acid, paint materials, and
paperboard turned up, following a decline in the prior month. Gray fabric
prices increased, after showing no change a month earlier.
The index for intermediate foods and feeds showed no change in
November, after posting a 0.6-percent gain in October. Flour prices
decreased 1.3 percent, following a 4.8-percent advance in the prior month.
The indexes for beef and veal, prepared animal feeds, and pork rose less
than in October, while crude vegetable oil prices fell more than a month
ago. The index for confectionery materials turned down, after advancing in
the previous month. By contrast, prices for fluid milk products declined
1.2 percent in November, following a 2.6-percent rate of decrease in
October. The index for butter advanced, after falling last month. Prices
for refined sugar moved up at a faster rate in November than in October.
The index for materials and components for construction edged down 0.2
percent in November, following a 0.1-percent decline in October. Falling
prices for plywood, softwood lumber, gypsum products, and for asphalt felts
and coatings outweighed price increases for wiring devices, nonferrous wire
and cable, heating equipment, and steel wire.
Crude goods
The Producer Price Index for Crude Materials for Further Processing
turned down 2.0 percent in November, following a 3.4 percent advance in
October. Prices for crude energy materials also fell, after rising in the
prior month. The crude foodstuffs and feedstuffs index increased at a
slower rate than last month. Prices for basic industrial materials fell
more than in October. (See table B.)
The index for crude energy materials posted a 4.1-percent decrease in
November, following a 4.6-percent advance a month ago. The natural gas
index dropped 11.1 percent, after rising 12.3 percent in October. Coal
prices fell at a faster pace in November than in the previous month. By
contrast, crude petroleum prices turned up 7.1 percent, following a 5.0-
percent decrease in the prior month.
The crude foodstuffs and feedstuffs index increased 1.3 percent, after
rising 3.5-percent in October. November's deceleration was led by
slaughter hog prices, which dropped 9.6 percent after rising 5.4 percent in
October. Prices for slaughter broilers and fryers, unprocessed finfish,
and for fresh fruits and melons also turned down, after rising in October.
The wheat index rose less than in the prior month. On the other hand,
slaughter cattle price increases accelerated to 5.6 percent in November
from 3.0-percent in the prior month. The indexes for soybeans and fluid
milk fell less in November than in October, and prices for slaughter
turkeys turned up, after falling last month.
-5-
The index for basic industrial materials declined 2.3 percent in
November, following a 0.6-percent decrease in the prior month. Prices for
nonferrous metal ores decreased 3.9 percent, following a 1.6-percent
increase in October. The cattle hides index also fell, after rising a
month ago. Prices for aluminum base scrap, iron and steel scrap,
wastepaper, and leaf tobacco fell more than in the previous month. By
contrast, the pulpwood index turned up 1.3 percent, after edging down 0.1
percent in October. The construction sand and gravel index rose more than
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 Domestic
Mining Industries fell 3.2 percent in November, after posting a 5.0-percent
gain in October. (Net output price indexes are not seasonally adjusted.)
This downturn was led by the index for the crude petroleum, natural gas,
and natural gas liquids industry which decreased 3.9 percent, following a
6.2-percent increase last month. Prices received by the copper ores
industry also declined, after rising in the prior month. Faster price
decreases were reported for the gold ores industry index in November than
in October. The iron ores industry index showed no change in November,
after rising 2.3 percent in the prior month. By contrast, prices received
by the oil and gas well drilling industry turned up 5.7 percent, following
a 0.4-percent decline in October. The indexes for coal mining services,
the crushed and broken limestone industry, and the kaolin and ball clay
industry also advanced, after falling a month ago. In November, the
Producer Price Index for the Net Output of Total Domestic Mining Industries
stood at 124.6 (December 1984 = 100), 31.0 percent above its year-ago
level.
Manufacturing. For the second consecutive month, the Producer Price Index
for the Net Output of Total Domestic Manufacturing Industries edged up 0.1
percent. November price increases received by the petroleum refining, food
and kindred products, printing and publishing, and rubber and miscellaneous
plastic products industries were offset by price decreases for the
chemicals and allied products, electrical and electronic machinery, lumber
and wood products, and transportation equipment industries. In November,
the Producer Price Index for the Net Output of Total Domestic Manufacturing
Industries stood at 134.9 (December 1984 = 100), 3.5 percent above its year-
ago level.
Services. Among service industries in November, falling prices were
observed for real estate agents and managers, telephone communications,
life insurance carriers, and for operators and lessors of nonresidential
buildings. By contrast, the industries for health services, scheduled air
transportation, cable television, and passenger car rental services
experienced increasing prices in November.
*****
Producer Price Index data for December 2000 will be
released on Friday, January 12, 2001 at 8:30 a.m. (E.S.T.)
-6-
Improved Quality Adjustment for Microprocessors
Effective with the release of January 2001 data, the Bureau of Labor
Statistics will implement a new quality valuation methodology for
microprocessors designed and sold for computer applications. This new
quality adjustment methodology views changes in the processing power of
microprocessors as changes in quality and permits the explicit estimation
of their value. The new approach replaces current procedures which have
generally been limited to considering price differences between a new
microprocessor and its predecessor as a measure of the value of the quality
difference between the two.
For additional information, see the October 2000 issue of the Producer
Price Index Detailed Report, or contact the Section of Index Analysis and
Public Information at (ppi-info@BLS.gov) or (202) 691-7705
Bureau of Labor Statistics
mailto:ppi-info@bls.gov
Last modified:
Thursday, December 14, 2000
URL: /news.release/ppi.nr0.htm
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Producer Price Indexes