November '05 Producer Price Index drops .7%, materials for durable manufacturing rise 1.6%
The Producer Price Index for Finished Goods declined 0.7 percent in November, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decrease followed a 0.7-percent rise in October and a 1.9-percent gain in September. Prices for finished goods other than foods and energy increased 0.1 percent, after decreasing 0.3 percent in the preceding month. At the earlier stages of processing, the index for intermediate goods fell 1.2 percent, following a 3.0-percent rise in the prior month. Crude goods prices moved down 1.2 percent, after advancing 6.7 percent in October. (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 |
|--------------------------------------------------------------------------------------|
2004
Nov. 0.7 0.3 2.7 0.3 5.0 0.8 7.6
Dec. -.3 .2 -2.4 .2 4.2 .1 -3.1
2005
Jan. .1 -.5 -1.0 .7 4.1 .3 -2.0
Feb. .4 .6 1.8 -.1 4.7 .6 -1.0
Mar. .8 .6 3.3 .2 5.0 1.0 4.7
Apr. .5 -.2 1.8 .3 4.8 .7 2.6
May -.5 -.2 -3.3 .3 3.6 -.7 -3.1
June 0 -.8 1.8 -.2 3.7 .3 -1.9
July r 1.0 -.5 r 4.6 r .4 r 4.7 r 1.1 r 5.4
Aug. r .5 -.3 r 3.4 r -.1 5.1 r .5 r 2.8
Sept. 1.9 1.4 7.1 .3 6.9 2.5 10.2
Oct. .7 -.1 4.1 -.3 5.9 3.0 6.7
Nov. -.7 .5 -4.0 .1 4.4 -1.2 -1.2
r=revised. Some of the figures shown above and elsewhere in this release may differ
from those previously reported because data for July 2005 have been revised to
reflect the availability of late reports and corrections by respondents.
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The downturn in the finished goods index was due to prices for energy goods, which fell 4.0 percent in November after increasing 4.1 percent a month earlier. By contrast, prices for finished consumer goods other than foods and energy turned up 0.2 percent, following a 0.2-percent decline in the previous month. The finished consumer foods index moved up 0.5 percent, after edging down 0.1 percent in October. Capital equipment prices fell 0.1 percent in November, compared with a 0.2-percent decrease in the prior month.
Before seasonal adjustment, the Producer Price Index for Finished Goods dropped 1.6 percent in November to 158.4 (1982 = 100). From November 2004 to November 2005, prices for finished goods increased 4.4 percent. Over the same period, the finished energy goods index jumped 17.8 percent, prices for finished goods other than foods and energy advanced 1.7 percent, and the finished consumer foods index inched up 0.8 percent. For the 12 months ended November 2005, prices received by manufacturers of intermediate goods rose 8.4 percent, and the index for crude goods went up 21.0 percent.
Finished goods
Prices for finished energy goods decreased 4.0 percent in November, following a 4.1-percent gain in the previous month. Leading this downturn, the residential natural gas index fell 0.5 percent, after rising 12.7 percent in October. Prices for home heating oil, liquefied petroleum gas, diesel fuel, and kerosene also moved down in November, following increases in the prior month. The gasoline index declined more than it had in the preceding month, while prices for residential electric power advanced at slower rates than they had in October. (See table 2.)
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 |
| | | | Except |12 months | | | Except | months |
| | | |foods and| ago | | Energy |foods and| ago |
|Month | Foods | Energy | energy | (unadj.) | Foods | (unadj.)| energy
||(unadj.) |
|----------------------------------------------------------------------------------|
2004
Nov. -0.5 2.8 0.3 9.9 1.1 14.6 3.1 25.2
Dec. .4 -1.4 .4 9.2 2.2 -7.5 -1.4 17.4
2005
Jan. .8 -1.7 .7 8.7 2.1 -4.6 -2.5 10.3
Feb. -.4 1.2 .5 8.4 -3.1 1.5 -2.9 8.3
Mar. 1.0 3.7 .3 8.7 4.6 7.0 -.3 11.4
Apr. 0 3.5 .1 8.1 -2.5 6.5 2.1 12.4
May .6 -2.6 -.3 6.3 -1.0 -4.5 -3.0 5.4
June -.1 2.0 -.1 6.2 -3.0 -.5 -3.7 2.5
July r 0 r 5.1 r .2 r 6.8 0 r 10.8 r .7 r 7.9
Aug. r 0 r 3.1 r -.3 6.1 -1.4 r 4.6 r 5.2 11.3
Sept. -.6 8.3 1.2 8.4 1.5 16.9 5.3 28.5
Oct. .7 9.3 1.2 10.5 .2 12.4 -1.2 31.5
Nov. -.1 -6.6 .5 8.4 1.3 -4.2 5.4 21.0
r=revised. Some of the figures shown above and elsewhere in this release may
differ from those previously reported because data for July 2005 have been revised
to reflect the availability of late reports and corrections by respondents.
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The index for finished consumer goods other than foods and energy rose 0.2 percent in November, following a 0.2-percent decrease in the previous month. Prices for pharmaceutical preparations increased 1.6 percent, following a 0.2-percent gain in the preceding month. The index for sanitary papers and health products also rose more than a month earlier. The rates of decline in the indexes for passenger cars and light motor trucks slowed from October to November. Prices for apparel and floor coverings turned up, after falling in October. The index for household furniture rose, after showing no change in the previous month. By contrast, prices for alcoholic beverages turned down 0.3 percent in November, after increasing 0.3 percent a month earlier. The textile housefurnishings index also declined, following a gain in the preceding month, while prices for book publishing and mobile homes rose less than they had in October.
The finished consumer foods index turned up 0.5 percent in November, compared with a 0.1-percent decline in the previous month. More than half of this upturn was due to prices for eggs for fresh use, which increased 13.4 percent following a 25.2-percent drop in October. The indexes for fresh and dry vegetables, fresh fruits and melons, pork, and soft drinks also rose, after falling in the prior month. Conversely, finfish and shellfish prices declined 7.1 percent in November, following a 9.7-percent increase in the preceding month. The processed turkeys index also turned down, following a gain in October. Prices for beef and veal rose less than they had in the prior month, and the processed young chickens index fell more than it had in October. Prices for dairy products showed no change in November, after moving up a month earlier.
The capital equipment index inched down 0.1 percent in November, compared with a 0.2-percent decline in the prior month. In November, falling prices for light motor trucks, passenger cars, communication and related equipment, metal cutting machine tools, electronic computers, and railroad equipment slightly outweighed rising prices for commercial furniture, transformers and power regulators, agricultural machinery and equipment, civilian aircraft, industrial material handling equipment, and heavy motor trucks.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components decreased 1.2 percent in November, following a 3.0-percent increase in October. This reversal primarily can be attributed to prices for intermediate energy goods, which fell in November after rising in the preceding month. The indexes for materials for nondurable manufacturing and for intermediate foods and feeds also turned down, following gains in October. Prices for materials and components for construction and materials for durable manufacturing advanced at slower rates in November than they had a month earlier. The index for intermediate goods less foods and energy moved up 0.5 percent in November, after climbing 1.2 percent in October. (See table B.)
Prices for intermediate energy goods dropped 6.6 percent, following a 9.3-percent jump in October. The index for industrial natural gas declined 4.4 percent, after surging 16.1 percent in the previous month. Prices for jet fuel, diesel fuel, commercial natural gas, residual fuel, natural gas to electric utilities, and home heating oil also turned down, following increases in October. The gasoline index fell more in November than it had a month earlier. By contrast, prices for industrial electric power advanced 4.4 percent, after rising 1.0 percent in the preceding month. (See table 2.)
The index for materials for nondurable manufacturing decreased 0.9 percent in November, following a 2.8-percent gain in October. Prices for primary basic organic chemicals moved down 10.3 percent, after increasing 7.7 percent in the prior month. The indexes for inedible fats and oils and for processed yarns and threads also fell in November, following advances a month earlier. Prices for plastic resins and materials and for basic inorganic chemicals rose at slower rates than they had in October. Alternatively, the paperboard index climbed 4.0 percent, after edging up 0.2 percent in October. Prices for intermediate basic organic chemicals and fertilizer materials also increased at faster rates than they had in the prior month. The indexes for paper and finished fabrics turned up in November.
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The rate of increase in prices for materials and components for construction slowed to 1.0 percent in November, from 1.4 percent in October. The plywood index turned down 15.0 percent in November, compared with a 5.1-percent increase a month earlier. Prices for building paper and board, air conditioning and refrigeration equipment, and treated wood also declined, following advances in October. The softwood lumber index fell more than in the prior month, while prices for fabricated structural metal products increased less in November than they had in the previous month. Conversely, the concrete products index rose 1.2 percent, after moving up 0.6 percent in October. Prices for wiring devices, nonferrous wire and cable, asphalt felts and coatings, and plastic construction products also climbed more in November than they had in the preceding month. The index for mineral wool for structural insulation turned up, following a decrease in October.
The index for materials for durable manufacturing advanced 1.6 percent in November, after rising 2.0 percent in October. Prices for copper cathode and refined copper increased 3.3 percent, compared with a 13.3- percent jump in the previous month. The indexes for building paper and board, plywood, cold finished steel bars, and cement turned down in November, following gains a month earlier. Prices for hot rolled steel bars, plates, and structural shapes, as well as copper and brass mill shapes, rose less than they had in October. Conversely, the index for semifinished steel mill products surged 12.2 percent in November, after moving up 2.5 percent in the prior month. Prices for hot rolled steel sheet and strip, aluminum mill shapes, and prepared paint also increased at quicker rates than they had in October.
The index for intermediate foods and feeds edged down 0.1 percent in November, following a 0.7-percent increase in October. Prices for prepared animal feeds fell 1.3 percent, after rising 0.3 percent in the preceding month. The indexes for beef and veal, fluid milk products, refined sugar and byproducts, and shortening and cooking oils advanced at slower rates in November than they had in October. Prices for processed young chickens decreased more than they had in the previous month. By contrast, the pork index moved up 0.2 percent in November, following a 4.2-percent decline a month earlier. Prices for natural, processed, and imitation cheese also turned up, after falling in October. The indexes for flour and snack chips increased at quicker rates than they had in the prior month.
Crude goods
The Producer Price Index for Crude Materials for Further Processing fell 1.2 percent in November, following a 6.7-percent advance in October. Prices for crude energy materials turned down in November, after rising in the preceding month. Conversely, the index for basic industrial materials increased, following a decline in October. The rate of increase in prices for crude foodstuffs and feedstuffs quickened from October to November. (See table B.)
The crude energy materials index declined 4.2 percent in November, after increasing 12.4 percent in October. The natural gas index fell 1.3 percent, compared with a 20.3-percent jump in the prior month. Crude petroleum prices tumbled 11.4 percent in November, after climbing 0.6 percent a month earlier. By contrast, the coal index edged down 0.1 percent in November, following a 0.2-percent drop in October. (See table 2).
Prices for basic industrial materials increased 5.4 percent in November, after decreasing 1.2 percent in October. The iron and steel scrap index went up 18.8 percent, following a 7.8-percent decline in the preceding month. Prices for aluminum base scrap and for softwood logs, bolts, and timber also turned up in November, after falling in October. The indexes for construction sand, gravel, and crushed stone and for hardwood logs, bolts, and timber rose more in November than they had in the prior month. Alternatively, the raw cotton index fell 6.0 percent, compared with an 8.3-percent gain in October. Prices for gold ores, wastepaper, and pulpwood also turned down in November, following increases a month earlier. The index for copper base scrap rose less in November than it had in October.
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Prices for crude foodstuffs and feedstuffs climbed 1.3 percent, following a 0.2-percent gain in October. Subsequent to a 7.7-percent decrease in October, the corn index rose 10.5 percent in November. Prices for soybeans, fresh and dry vegetables, and fresh fruits and melons also turned up in November. The index for slaughter broilers and fryers fell less than it had in the previous month. By contrast, prices for slaughter hogs declined 1.9 percent in November, after advancing 8.6 percent in October. The indexes for wheat and unprocessed finfish also turned down, following gains a month earlier. Prices for fluid milk showed no change in November, after increasing in the preceding month.
Net output price indexes for mining, manufacturing, and services industries
Mining. The Producer Price Index for the Net Output of Total Mining Industries fell 3.4 percent in November, following a 9.8-percent rise in October. (Net output price indexes are not seasonally adjusted.) Prices received by the industry for crude petroleum and natural gas extraction declined 6.1 percent, after gaining 12.2 percent a month earlier. The industry indexes for natural gas liquid extraction, oil and gas operations support activities, gold ore mining, and bituminous coal and lignite surface mining also turned down, after rising in October. The industry index for oil and gas well drilling increased less than a month earlier. By contrast, prices received by the industry for bituminous coal underground mining turned up 0.5 percent, after falling 0.4 percent in October. The industry index for potash, soda, and borate mineral mining also increased, after an October decline. In November, the Producer Price Index for Total Mining Industries was 245.2 (December 1984 = 100), 36.9 percent above its year-ago level.
Manufacturing. The Producer Price Index for the Net Output of Total Manufacturing Industries declined 2.4 percent in November, following a 1.6- percent gain in October. Prices paid to manufacturers of petroleum and coal products turned down 19.4 percent, after rising 7.7 percent in the previous month. The industry group indexes for transportation equipment, wood products, and food also decreased, after increasing in October. The industry group index for machinery remained unchanged, after rising in the prior month, while prices received by the computer and electronic products industry group fell at faster rates in November than in October. By contrast, the rate of increase in the industry group index for plastics and rubber products accelerated to 3.3 percent, from 2.0 percent in October. Prices paid to manufacturers of paper turned up in November, after falling in the prior month. In November, the Producer Price Index for Total Manufacturing Industries was 152.7 (December 1984 = 100), 4.5 percent above its year-ago level.
Services. Among services industries in November, prices received by commercial bankers increased 4.4 percent, after declining 3.5 percent in October. The industry indexes for hotels and motels (excluding casinos) and for direct life insurance carriers also turned up, following declines
in the preceding month. Alternatively, prices paid to offices of real
estate agents and brokers edged down 0.1 percent, following a 4.5-percent gain in October. The industry indexes for long distance trucking of new, specialized freight and for cable networks also turned down in November. Prices received by lessors of nonresidential buildings (excluding
miniwarehouses) decreased in November, after remaining unchanged in October. The industry indexes for direct health and medical insurance carriers and for portfolio management advanced at slower rates than in the previous month. Prices received by specialty hospitals (other than psychiatric and substance abuse) were unchanged, after rising in October.
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Producer Price Index data for December 2005 are scheduled to be released on Friday, January 13, 2006, at 8:30 a.m. (EST).
