U.S. July Producer Price Index Report (Text)
The following is the text of the U.S. producer price report for July released by the Labor Department.
The Producer Price Index for finished goods rose 0.2 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed a 0.4- percent decrease in June and a 0.2-percent rise in May. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 0.2 percent in July, and the crude goods index declined 1.2 percent. On an unadjusted basis, prices for finished goods moved up 7.2 percent for the 12 months ended July 2011.
In July, the advance in the finished goods index was led by prices for finished goods less foods and energy, which rose 0.4 percent. Also contributing to higher finished goods prices, the index for finished consumer foods increased 0.6 percent. By contrast, prices for finished energy goods declined 0.6 percent.
The index for finished goods less foods and energy moved up 0.4 percent in July, the eighth consecutive rise. Nearly one-quarter of the July advance can be attributed to a 2.8- percent increase in prices for tobacco products. The indexes for light motor trucks and pharmaceutical preparations also contributed significantly to the rise in the finished core index.
In July, the index for finished consumer foods advanced 0.6 percent for the second consecutive month. A major contributor to the July increase was beef and veal prices, which moved up 2.7 percent. Higher prices for fresh fruits and melons also played a significant role in the finished foods advance.
The index for finished energy goods moved down 0.6 percent in July, the second straight decline. Prices for gasoline, which fell 2.8 percent, led the July decrease.
The Producer Price Index for intermediate materials, supplies, and components advanced 0.2 percent in July after no change in June. The increase was broad based, with prices for intermediate goods less foods and energy moving up 0.2 percent, the intermediate energy goods index advancing 0.4 percent, and prices for intermediate foods and feeds edging up 0.1 percent. On a 12-month basis, the index for intermediate goods climbed 11.6 percent, the largest increase since a 15.3-percent rise in September 2008.
The index for intermediate goods less foods and energy moved up 0.2 percent in July, the smallest advance since a similar rise in September 2010. Over twenty percent of the July increase can be traced to higher prices for plastic resins and materials, which rose 2.1 percent. The indexes for copper and brass mill shapes and for rubber and rubber products also contributed to higher intermediate core prices.
Intermediate energy goods prices moved up 0.4 percent in July following a 0.8-percent decline in June. The index for liquefied petroleum gas led this advance, increasing 2.5 percent. Higher prices for industrial electric power also contributed to the rise in the intermediate energy goods index.
The index for intermediate foods and feeds inched up 0.1 percent in July, the second consecutive monthly increase. The July advance can be traced primarily to prices for natural, processed, and imitation cheese, which moved up 6.3 percent.
The Producer Price Index for crude materials for further processing fell 1.2 percent in July. For the 3-month period ending in July, prices for crude materials declined 5.8 percent following a 6.2-percent rise from January to April. In July, the monthly decrease in the crude goods index is mostly attributable to prices for crude energy materials, which fell 2.6 percent. Also contributing to the July decrease, prices for crude foodstuffs and feedstuffs declined 0.8 percent. By contrast, the index for crude nonfood materials less energy advanced 0.7 percent.
The index for crude energy materials decreased 2.6 percent in July. From April to July, prices for crude energy materials fell 11.5 percent subsequent to a 3.5-percent rise for the 3 months ended in April. In July, the monthly decrease was mostly the result of a 5.2-percent decline in crude petroleum prices. A decrease in the index for coal also contributed to lower prices for crude energy materials.
Prices for crude foodstuffs and feedstuffs fell 0.8 percent in July. For the 3 months ending in July, crude food prices moved down 3.3 percent. This decrease followed an 11.0- percent advance from January to April. A 9.7-percent decline in prices for slaughter poultry led the monthly decrease in July. Lower prices for fresh and dry vegetables also contributed to the decline in the crude foods index.
The index for crude nonfood materials less energy climbed 0.7 percent in July. From April to July, crude core prices rose 0.8 percent following a 2.7-percent advance in the prior 3-month period. A 7.0-percent increase in prices for copper ores was a major contributor to the monthly increase in July. An advance in the index for corn also contributed to the rise in crude core prices.
The Producer Price Index for the net output of total trade industries fell 0.9 percent in July after no change in June. (Trade indexes measure changes in margins received by wholesalers and retailers.) Almost half of the July decrease can be traced to margins received by gasoline stations, which dropped 11.7 percent. Lower margins received by grocery stores and merchant wholesalers of durable goods also were major factors in the decline in the total trade industries index.
Transportation and warehousing industries:
The Producer Price Index for the net output of transportation and warehousing industries moved up 0.2 percent in July, the smallest advance since a similar gain in December 2010. Over ninety percent of the July increase is attributable to a 1.1-percent rise in prices received by the scheduled passenger air transportation industry. Higher prices received by the industries for freight transportation arrangement and pipeline transportation of refined petroleum products also contributed to the advance in the transportation and warehousing industries index.
Traditional service industries:
The Producer Price Index for the net output of total traditional service industries inched up 0.1 percent in July, the second consecutive increase. About two-thirds of the July advance can be traced to prices received by the hospitals industry group, which moved up 0.4 percent. Increases in the indexes for automotive equipment rental and leasing and for management consulting services also were factors in the rise in the total traditional service industries index.
The Producer Price Index for August 2011 is scheduled to be released on Wednesday, September 14, 2011 at 8:30 a.m. (EDT).
Resampling of Industries
Effective with this release, the Producer Price Index (PPI) includes data for 33 resampled industries (noted below) classified according to the North American Industry Classification System (NAICS). The Bureau of Labor Statistics periodically updates the sample of producers providing data for the PPI to reflect current conditions more accurately when the structure, membership, technology, or product mix of an industry shifts. The first results of this systematic process were published in July 1986. Subsequent efforts have been completed at 6-month intervals.
For information on specific index additions, deletions, and recodes that are effective with this semiannual update, see the July 2011 issue of the PPI Detailed Report online at http://www.bls.gov/ppi/ppidr201107.pdf, or contact the PPI's Section of Index Analysis and Public Information at ppi- email@example.com or (202) 691-7705.
NAICS Code Industry
212221 Gold ore mining 212222 Silver ore mining 236211 New industrial building construction 311119 Other animal food manufacturing 313210 Broadwoven fabric mills 316110 Leather and hide tanning and finishing 321214 Truss manufacturing 321991 Manufactured home (mobile home) manufacturing 324191 Petroleum lubricating oil and grease manufacturing 325194 Gum and wood chemical manufacturing (1) 325220 Artificial fibers and filaments manufacturing (2) 325920 Explosives manufacturing 327211 Flat glass manufacturing 331492 Secondary processing of nonferrous metals, other than copper and aluminum 332312 Fabricated structural metal manufacturing 332322 Sheet metal work manufacturing 332410 Power boiler and heat exchanger manufacturing 332420 Metal tank (heavy gauge) manufacturing 332431 Metal can manufacturing 332919 Other metal valve and pipe fitting manufacturing 333611 Turbine and turbine generator set units manufacturing 333991 Power-driven handtool manufacturing 333994 Industrial process furnace and oven manufacturing 335110 Electric lamp bulb and part manufacturing 335122 Nonresidential electric lighting fixture manufacturing 335314 Relay and industrial control manufacturing 336120 Heavy duty truck manufacturing 336611 Ship building and repairing 336612 Boat building 447110 Gasoline stations with convenience stores 453930 Manufactured (mobile) home dealers 454210 Vending machine operators 721120 Casino hotels
(1) Combines data formerly included under NAICS 325191 and 325192. (2) Combines data formerly included under NAICS 325221 and 325222.
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