From June 2008 to December 2008, finished goods prices fell 6.2 percent, seasonally adjusted. By contrast, from December 2008 to June 2009, the finished goods index increased 2.1 percent. During the first 6 months of 2009, the finished goods index climbed at a 4.2 percent seasonally adjusted annual rate (SAAR) after declining at a 12.1-percent SAAR during the second half of 2008. This upturn is attributable to prices for finished energy goods, which increased at an 18.8-percent SAAR from December 2008 to June 2009 after falling at a 52.9-percent SAAR in the 6 months ended December 2008. By contrast, the index for finished goods other than foods and energy advanced at a 2.0-percent SAAR for the 6 months ended in June after rising at a 4.7-percent SAAR during the prior 6-month period. Prices for finished consumer foods moved down at a 2.3-percent SAAR during the first half of 2009 after decreasing at a 1.8-percent SAAR during the second half of 2008. Earlier in the production chain, the intermediate goods index declined at a 1.6-percent SAAR from December 2008 to June 2009 after falling at a 22.1-percent SAAR during the latter half of 2008, and prices for crude goods increased at a 5.2-percent SAAR for the 6 months ended in June after dropping at a 66.0-percent SAAR for the 6 months ended December 2008.
Before seasonal adjustment, the Producer Price Index for Finished Goods rose 1.9 percent in June to 174.1 (1982 = 100). From June 2008 to June 2009, finished goods prices declined 4.6 percent. Over the same period, the index for finished energy goods fell 25.2 percent and prices for finished consumer foods decreased 2.2 percent. By contrast, partially offsetting the overall decline in finished goods prices, the index for finished goods other than foods and energy increased 3.3 percent for the 12 months ended in June. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved down 12.5 percent and the crude goods index dropped 40.0 percent from June 2008 to June 2009.
Finished goods
The index for finished energy goods climbed 6.6 percent in June following a 2.9-percent advance in May. Gasoline prices jumped 18.5 percent after rising 13.9 percent in the preceding month. The indexes for home heating oil, liquefied petroleum gas, diesel fuel, and kerosene also advanced more in June than they had a month earlier. Prices for residential natural gas turned up after falling in May. By contrast, the index for residential electric power decreased 0.9 percent in June following a 0.3-percent decline in the prior month. Prices for finished lubricants also fell more than they had in May.
The index for finished consumer foods increased 1.1 percent in June after falling 1.6 percent in May. More than half of this upturn can be traced to prices for fresh and dry vegetables, which surged 21.8 percent following a 20.9-percent drop in the previous month. The indexes for eggs for fresh use; bottled carbonated soft drinks; bakery products; and natural, processed, and imitation cheese also turned up in June. Prices for processed young chickens rose more than in the preceding month. By contrast, prices for beef and veal decreased 2.9 percent following a 9.2-percent advance in May. The indexes for finfish and shellfish, fluid milk products, and melons also turned down in June.
The index for finished goods other than foods and energy increased 0.5 percent in June after inching down 0.1 percent in May. Accounting for most of this upturn, prices for light motor trucks climbed 3.4 percent following no change in the previous month, and the index for passenger cars rose 2.0 percent in June after edging up 0.1 percent in May. Prices for pharmaceutical preparations, cosmetics and toilet preparations, and soaps and synthetic detergents advanced after falling in the prior month. Conversely, the index for agricultural chemicals and chemical products decreased 14.8 percent in June following a 0.1-percent increase in May. Prices for tobacco products also turned down in June. Prices for electronic computers declined after no change a month earlier, while the index for newspaper circulation rose less than it had in May.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 1.9 percent in June following a 0.3-percent increase in the prior month. Prices for intermediate energy goods rose more than they had in May. The indexes for materials for both nondurable and durable manufacturing turned up in June. Prices for materials and components for construction were unchanged after edging lower in May, and the intermediate foods and feeds index climbed at the same rate in June as in the prior month. Excluding foods and energy, prices for intermediate materials rose 0.4 percent following a 0.2-percent decline a month earlier.
The intermediate energy goods index advanced 8.9 percent in June after increasing 2.0 percent in the previous month. Jet fuel prices jumped 26.7 percent after decreasing 1.0 percent in May. The indexes for residual fuel and commercial natural gas also turned up after falling in the preceding month. Prices for diesel fuel, gasoline, and heating oil rose more in June. The commercial electric power index decreased less than in May. Conversely, partially offsetting the acceleration in the intermediate energy goods index, prices for industrial electric power declined 2.0 percent after moving down 0.9 percent in May. The index for natural gas to electric utilities rose less than in the prior month. The intermediate energy goods index advanced at a 12.7-percent SAAR from December 2008 to June 2009 after decreasing at a 57.0-percent SAAR during the second half of 2008.
Prices for materials for nondurable manufacturing moved up 4.6 percent in June following a 0.3-percent decline in the prior month. The index for basic organic chemicals advanced 7.1 percent compared with a 0.5-percent gain in May. Prices for synthetic fibers, plastic resins and materials, and synthetic rubber turned up after falling in the previous month. The indexes for paperboard and for writing and printing papers decreased less than they had in May. By contrast, prices for agricultural chemicals and chemical products dropped 14.8 percent in June after edging up 0.1 percent in the preceding month. The indexes for rock salt and for fats oils also turned down following increases in May. The index for materials for nondurable manufacturing rose at a 4.5-percent SAAR in the first half of 2009 after decreasing at a 30.9-percent SAAR in the second half of 2008.
Prices for materials for durable manufacturing increased 0.5 percent in June following a 0.6-percent decline in the preceding month. The index for hot rolled steel bars, plates, and structural shapes rose 2.5 percent after falling 1.3 percent in May. Prices for semifinished steel mill products, softwood lumber, synthetic fibers, and titanium mill shapes also turned up in June. The index for copper and brass mill shapes rose more than in the prior month, while prices for cold rolled steel sheet and strip decreased less than in May. By contrast, the rise in the index for primary nonferrous metals slowed to 4.2 percent in June from 8.2 percent in the previous month. Prices for aluminum mill shapes also rose less than they had in May. The index for materials for durable manufacturing declined at a 17.4-percent SAAR in the 6 months ended June 2009 after falling at a 31.0-percent SAAR in the second half of 2008.
Prices for materials and components for construction were unchanged after edging down 0.1 percent in the prior month. In June, price increases for asphalt felts and coatings, ready-mixed concrete, nonferrous metals, softwood lumber, and millwork were offset by falling prices for structural, architectural, and pre-engineered metal products; treated wood and contract wood preserving; non-farm prefabricated metal building systems; paving mixtures and blocks; and unitary air conditioners. The index for materials and components for construction decreased at a 5.4-percent SAAR in the first half of 2009 after moving up at a 1.5-percent SAAR in the prior 6-month period.
The intermediate foods and feeds index advanced 1.3 percent for the second consecutive month. In June, higher prices for prepared animal feeds, processed young chickens, flour and flour base mixes and doughs, bulk fluid milk and cream, and bottled carbonated soft drinks outweighed lower prices for beef and veal, shortening and cooking oils, and pork. The index for intermediate foods and feeds edged up at a 0.2-percent SAAR for the 6 months ended June 2009 after decreasing at a 17.8-percent SAAR from June to December 2008.
Crude goods
The Producer Price Index for Crude Materials for Further Processing increased 4.6 percent in June compared with a 3.6-percent gain in May. Prices for crude energy materials advanced more than they had in the previous month. By contrast, partially offsetting the acceleration in prices for crude goods, the index for crude nonfood materials less energy increased less than in May, and prices for crude foodstuffs and feedstuffs turned down in June after rising a month earlier.
The index for crude energy materials rose 10.9 percent in June subsequent to a 5.3-percent advance in the prior month. Leading this acceleration, prices for natural gas moved up 3.5 percent following a 5.7-percent drop in May. In June, the increase in the crude petroleum
index accelerated to 20.3 percent from 18.6 percent in the preceding month. Conversely, coal prices advanced 1.7 percent compared with a 2.0-percent rise in May. From December 2008 to June 2009, the index for crude energy materials increased at a 2.1-percent SAAR after falling at a 79.3-percent SAAR in the prior 6-month period.
The increase in the index for crude nonfood materials less energy slowed to 2.6 percent in June from 6.7 percent in the prior month. Prices for carbon steel scrap moved up 0.5 percent subsequent to a 20.6-percent climb in May. Increases in the indexes for copper ores, nonferrous scrap, corn, and wheat also decelerated from the previous month. Phosphates prices fell more in June, and the pulpwood index turned down after rising in May. By contrast, the increase in the index for gold ores accelerated to 5.7 percent from 2.5 percent in May. Wastepaper prices also increased more than in the preceding month. During the first half of 2009, the crude nonfood materials less energy index advanced at a 17.5-percent SAAR after dropping at a 64.5-percent SAAR in the previous 6-month period.
Prices for crude foodstuffs and feedstuffs moved down 0.4 percent in June following a 0.4-percent advance in the previous month. The index for unprocessed finfish declined 39.5 percent subsequent to a 5.0-percent increase in May. Prices for slaughter poultry and corn increased less than in the preceding month. The indexes for Irish potatoes for processing, slaughter cows and bulls, and slaughter steers and heifers decreased more in June than they had a month earlier. By contrast, prices for fresh vegetables (except potatoes) jumped 36.1 percent after falling 26.4 percent in May. The index for slaughter barrows and gilts declined less in June than in the previous month, and prices for hay, hayseeds, and oilseeds advanced more than in May. The index for crude foodstuffs and feedstuffs decreased at a 0.4-percent SAAR in the first half of 2009 after falling at a 37.1-percent SAAR in the second half of 2008.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output Total Mining, Utilities, and Manufacturing Industries advanced 1.7 percent in June after moving up 1.1 percent in the prior month. (Net output price indexes are not seasonally adjusted.) The industry index for petroleum refineries climbed 17.9 percent subsequent to a 13.9-percent jump a month earlier. Prices received by distributors of electric power and by the crude petroleum and natural gas extraction industry also rose more than they had in May. The indexes for automobile, light truck, and utility vehicle manufacturing; natural gas distribution; and pharmaceutical preparation manufacturing turned up in June. By contrast, partially offsetting the acceleration in the index for total mining, utilities, and manufacturing industries, the industry index for livestock slaughtering inched up 0.1 percent in June after advancing 6.2 percent a month earlier. Prices received by manufacturers of phosphatic fertilizer declined at faster rates compared with the previous month. For the first 6 months of 2009, the Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries increased at a 4.0-percent annualized rate compared with an 18.8-percent annualized rate of decline in the final half of 2008. In June, the index for total mining, utilities, and manufacturing industries was 107.0 (December 2006 = 100), 8.1 percent below its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries moved up 1.2 percent in June compared with a 0.9-percent decline a month earlier. (Trade indexes measure changes in margins received by wholesalers and retailers.) Margins received by
merchant wholesalers of nondurable goods increased 1.8 percent subsequent to a 2.0-percent decline in the preceding month. The margin indexes for merchant wholesalers of durable goods, women's clothing stores, new car dealers, and discount department stores also turned up in June. Margins received by gasoline stations with convenience stores rose more than in the previous month. By contrast, the margin index for non-discount department stores fell 6.5 percent following no change in May. Margins received by electronic shopping and mail-order houses and by furniture stores turned down in June. For the first half of 2009, the Producer Price Index for the Net Output of Total Trade Industries increased at a 0.4-percent annualized rate after rising at a 5.6-percent annualized rate in the second half of 2008. In June, the index for total trade industries was 111.7 (December 2006 = 100), 2.9 percent above its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of Transportation and Warehousing Industries edged up 0.3 percent in June following a 0.7-percent decrease in the previous month. Leading this upturn, the index for the scheduled passenger air transportation industry increased 2.9 percent after declining 7.0 percent in May. Prices received by the industries for local specialized freight trucking of new goods and freight transportation arrangement also turned up in June. The index for couriers moved up subsequent to no change a month earlier. By contrast, the index for the U.S. Postal Service was unchanged in June after increasing 2.9 percent in the prior month. Prices received by transporters of both scheduled air and deep sea freight declined faster than in May. The Coastal and Great Lakes freight transportation index turned down in June, and prices received by the industry for long-distance general freight trucking (by the truckload) rose less than in May. From December 2008 to June 2009, the Producer Price Index for the Net Output of Transportation and Warehousing Industries decreased at a 5.9-percent annualized rate following an 8.8-percent annualized rate of decline in the second half of 2008. In June, the index for transportation and warehousing industries was 106.6 (December 2006 = 100), 7.4 percent below its year-ago level.
Traditional Service Industries. The Producer Price Index for the Net Output of Total Traditional Service Industries edged down 0.1 percent in June following a 0.5-percent gain a month earlier. The index for the depository credit intermediation industry group decreased 1.7 percent compared with a 3.2-percent advance in May. Similarly, prices received by investment bankers and securities dealers, cellular and other wireless carriers, and casino hotels also turned down in June. The industry index for management consulting services fell more than in the prior month. Conversely, the industry index for portfolio management climbed 5.2 percent after increasing 1.1 percent in May. Prices received by non-casino hotels and motels also rose more than a month earlier. The industry indexes for passenger car rental and temporary help services turned up in June. During the first half of 2009, the Producer Price Index for the Net Output of Total Traditional Service Industries moved up at a 0.6-percent annualized rate following a 0.2-percent annualized rate of increase from June to December 2008. In June 2009, the index for total traditional service industries was 102.4, (December 2006 = 100), 0.4 percent above its year-ago level.
