During the first quarter of 2009, the finished goods index declined at a 0.9-percent seasonally adjusted annual rate (SAAR), after falling at a 24.9-percent SAAR during the fourth quarter of 2008. This slower rate of decrease can be traced to prices for finished energy goods, which moved down at a 2.7-percent SAAR for the 3 months ended in March after dropping at a 76.7-percent SAAR for the 3 months ended in December. Conversely, the index for finished consumer foods decreased at a 10.1-percent SAAR for the 3 months ended in March after falling at a 4.8-percent SAAR for the 3 months ended in December. Prices for finished goods less foods and energy increased at a 2.6-percent SAAR during the first quarter of 2009 after rising at the same rate in the fourth quarter of 2008. At the earlier stages of processing, the intermediate goods index moved down at an 11.7-percent SAAR during the first quarter of 2009 after falling at a 39.7-percent SAAR during the fourth quarter of 2008, and prices for crude goods decreased at a 27.2-percent SAAR for the 3 months ended in March after dropping at a 78.0-percent SAAR for the 3 months ended in December.
Before seasonal adjustment, the Producer Price Index for Finished Goods declined 0.7 percent in March to 168.9 (1982 = 100). From March 2008 to March 2009, finished goods prices fell 3.5 percent. Over the same period, the index for finished energy goods decreased 25.4 percent and prices for finished consumer foods moved down 1.1 percent. By contrast, the index for finished goods less foods and energy advanced 3.8 percent. For the 12 months ended in March, prices received by manufacturers of intermediate goods fell 8.9 percent, and the crude goods index dropped 39.0 percent.
Finished goods
The finished energy goods index declined 5.5 percent following a 1.3-percent increase in February. Most of this downturn can be attributed to gasoline prices, which fell 13.1 percent in March after rising 8.7 percent a month earlier. The index for residential electric power also turned down following an increase in February. Prices for liquefied petroleum gas, home heating oil, diesel fuel, kerosene, and lubricating and similar oils decreased more than they had in the preceding month. By contrast, partially offsetting the downturn in finished energy goods prices, the decline in the index for residential natural gas slowed to 2.4 percent from 3.6 percent in February. Prices for lubricating grease turned up in March.
The index for finished consumer goods less foods and energy edged up 0.1 percent after rising 0.4 percent in February. The increase in prices for sanitary paper products slowed to 0.1 percent in March from 1.6 percent in the prior month. The indexes for light motor trucks; alcoholic beverages; women's, girls', and infants' apparel; and periodical circulation turned down after increasing in February. Conversely, prices for toys, sporting goods, and small arms rose 0.3 percent following a 2.6-percent decline in February. The indexes for motor homes built on purchased chassis and for surgical appliances and supplies also turned up in March.
Prices for consumer plastic products fell less than they had in the preceding month. During the first quarter of 2009, the index for finished consumer goods less foods and energy increased at a 3.4-percent SAAR after rising at a 2.7-percent SAAR in the fourth quarter of 2008.Capital equipment prices decreased 0.2 percent in March after edging up 0.1 percent a month earlier. The civilian aircraft index fell 1.4 percent following a 0.5-percent advance in February. Prices also turned down in March for light motor trucks, turbine and turbine generator sets, heavy motor trucks, and x-ray and electromedical equipment. The index for non-lithographic printing presses was unchanged after rising in the previous month. Conversely, prices for communication and related equipment were unchanged in March compared with a 0.8-percent decline a month earlier. The index for signs and advertising displays also was unchanged following a decrease in February. Prices for electronic computers fell less than they had in February. The indexes for nonwood furniture and store fixtures and for construction wheel and crawler tractors turned up after falling in the prior month. Prices for capital equipment increased at a 1.5-percent SAAR in the 3 months ended March 2009 after rising at a 2.6-percent SAAR in the 3 months ended December 2008.
Price declines for finished consumer foods slowed to 0.7 percent in March from 1.6 percent in February. The index for fluid milk products fell 2.8 percent in March after dropping 9.7 percent in the previous month. The index for eggs for fresh use also decreased less than in February. Prices for fresh vegetables (except potatoes), strawberries, shortening and cooking oils, and tree nuts turned up in March after falling a month earlier. By contrast, beef and veal prices dropped 3.9 percent after declining 0.3 percent in the preceding month. The pork index also decreased more than it had in February. Prices for bread rolls, muffins, bagels, and croissants were unchanged in March after rising in the prior month.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components fell 1.5 percent in March subsequent to a 0.9-percent decrease in the prior month. Prices for intermediate energy goods and for materials for nondurable manufacturing decreased more than they had a month earlier. By contrast, partially offsetting the faster rate of decline in intermediate goods prices, the indexes for materials for durable manufacturing, intermediate foods and feeds, and materials and components for construction fell less than they had in February. Prices for intermediate materials less foods and energy moved down 0.3 percent in March after declining 0.6 percent in the prior month.
The intermediate energy goods index fell 6.3 percent in March following a 2.0-percent decrease in the previous month. The electric power index moved down 0.3 percent after rising 0.8 percent in February. Gasoline prices also turned down in March. The indexes for diesel fuel, jet fuel, liquefied petroleum gas, and heating oil decreased more than they had a month earlier. By contrast, prices for natural gas to electric utilities declined 1.8 percent compared with a 6.4-percent drop in February. The index for industrial natural gas also decreased less than it had in the prior month, and prices for residual fuels turned up in March. The intermediate energy goods index declined at a 24.8-percent SAAR from December 2008 to March 2009 after decreasing at a 75.5-percent SAAR during the final quarter of 2008.
The index for materials for nondurable manufacturing decreased 1.0 percent following a 0.8-percent decline in February. Prices for basic inorganic chemicals moved down 4.6 percent after rising 6.4 percent a month earlier. The index for rubber and rubber products also turned down in March. Prices for phosphates and for thermoplastic resins and plastic materials increased less than they had in February. By contrast, the basic organic chemicals index increased 1.5 percent compared with a 3.2-percent decline in the preceding month. Prices for nitro genates, medicinal and botanical chemicals, and water treating compounds also turned up in March. The inedible fats and oils index declined less than it had a month earlier. The index for materials for nondurable manufacturing moved down at a 7.0-percent SAAR for the 3 months ended March 2009 after dropping at a 58.8-percent SAAR in the previous 3 month period.
Prices for materials for durable manufacturing moved down 0.7 percent in March subsequent to a 2.6-percent decrease in the preceding month. The cold rolled steel sheet and strip index fell 0.6 percent following a 5.8-percent decline a month earlier. Prices for primary nonferrous metals also fell at slower rates compared with February. The indexes for hot rolled steel sheet and strip and for semifinished steel mill products turned up in March. Conversely, the index for basic inorganic chemicals decreased 4.6 percent after rising 6.4 percent in February. Prices for synthetic rubber also turned down in March. The indexes for hot rolled steel bars, plates, and structural shapes and for steel pipe and tube decreased more than they had a month earlier. From December 2008 to March 2009, prices for materials for durable manufacturingdeclined at a 24.0-percent SAAR after falling at a 52.6-percent SAAR from September to December 2008.
Prices for intermediate foods and feeds moved down 0.5 percent in March following a 1.4-percent decrease in February. The index for corn, cottonseed, and soybean cake and meal fell 1.9 percent subsequent to a 3.9-percent drop in the preceding month. The fluid milk products index also declined less than a month earlier. The indexes for shortening and cooking oils, processed eggs, and sugar and confectionary materials turned up in March. By contrast, the beef and veal index fell 3.9 percent after edging down 0.3 percent in the previous month. Prices for pork products also declined more than they had in February. The index for formula feeds moved down in March after rising a month earlier. The index for intermediate foods and feeds decreased at a 15.4-percent SAAR in the first quarter of 2009 after falling at a 33.8-percent SAAR in the final quarter of 2008.
Prices for materials and components for construction fell 0.3 percent in March following a 0.6-percent decline in the prior month. The plastic products index inched down 0.1 percent subsequent to a 0.9-percent decline in February. Prices for roofing asphalts, pitches, coatings, and cement also fell less than in the prior month. The indexes for prefabricated metal buildings, metal doors and frames (except storm doors), and prefabricated structural wood members turned up in March. By contrast, the index for prepared asphalt and tar roofing and siding products advanced 7.3 percent following a 10.5-percent gain a month earlier. Prices for paving mixtures and blocks and for softwood lumber decreased more than they had in February. The index for basic inorganic chemicals turned down in March. The index for materials and components for construction declined at a 6.4-percent SAAR in the first quarter of 2009 after moving down at a 10.9-percent SAAR in the prior quarter.
Crude goods
The Producer Price Index for Crude Materials for Further Processing fell 0.3 percent in March subsequent to a 4.5-percent decrease in February. The index for crude foodstuffs and feedstuffs declined less than in the previous month. Prices for crude energy materials turned up after falling in February. Conversely, slightly counteracting the slower rate of decline in the crude goods index, prices for crude nonfood materials less energy turned down after rising a month earlier.
The index for crude foodstuffs and feedstuffs moved down 1.9 percent following a 3.9-percent decrease in February. In March, falling prices for slaughter poultry; hay, hayseeds, and oilseeds; slaughter cattle; and rough rice more than offset rising prices for slaughter barrows and gilts, corn, strawberries, tree nuts, and milk eligible for fluid use. The index for crude foodstuffs and feedstuffs declined at a 17.8-percent SAAR during the first quarter of 2009 after dropping at a 51.2-percent SAAR in the fourth quarter of 2008.
Prices for crude energy materials advanced 1.6 percent in March compared with an 8.5-percent decrease in the prior month. Leading this upturn, the increase in the index for crude petroleum accelerated to 30.0 percent from 2.5 percent in February. Price declines for natural gas slowed to 15.6 percent in March from 17.8 percent in the previous month. By contrast, coal prices rose 0.5 percent following a 2.2-percent gain a month earlier. During the first 3 months of 2009, the crude energy materials index fell at a 46.9-percent SAAR after plunging at an 87.9-percent SAAR in the last 3 months of 2008.
Prices for crude nonfood materials less energy turned down 1.6 percent in March subsequent to a 1.5-percent advance in February. The index for iron and steel scrap decreased 8.3 percent compared with a 2.6-percent decline in the previous month. Price increases decelerated in March for gold ores, phosphates, grains, and for construction sand, gravel, and crushed stone. The indexes for nonferrous scrap, ground or treated minerals and earths, and soybeans turned down after increasing in the preceding month. By contrast, prices for high-grade wastepaper decreased 4.2 percent in March following an 11.1-percent drop in the previous month. Prices for strawberries turned up after falling in February. For the 3 months ended March 2009, the crude nonfood materials less energy index moved down at a 0.4-percent SAAR after dropping at an 81.7-percent SAAR in the 3 months ended December 2008.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries fell 0.9 percent in March following a 0.4-percent decrease in February. (Net output price indexes are not seasonally adjusted.) This faster rate of decline can be traced primarily to prices received by petroleum refineries, which dropped 6.8 percent in March after moving down 1.6 percent in the prior month. The indexes for both electric power generation and distribution; automobile, light truck, and utility vehicle manufacturing; and aircraft manufacturing turned down after rising in February. Prices received by phosphatic fertilizer manufacturers increased less than they had in the previous month. By contrast, partially offsetting the faster rate of decline in the index for total mining, utilities, and manufacturing industries, the index for petrochemical manufacturing rose 11.5 percent in March following an 18.3-percent decrease a month earlier. Prices received by the industries for crude oil and natural gas extraction and for oil and gas well drilling services also moved up after falling in February. For the first 3 months of 2009, the total mining, utilities, and manufacturing industries index declined at a 4.5-percent annualized rate compared with a 33.8-percent annualized rate of decrease in the final quarter of 2008. In March, the index for total mining, utilities, and manufacturing industries was 103.9 (December 2006 = 100), 5.9 percent below its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries moved up 0.2 percent in March following a 0.9-percent advance in February. (Trade indexes measure changes in margins received by wholesalers and retailers.) Margins received by women's clothing stores rose 0.9 percent in March after jumping 9.5 percent a month earlier. The margin index for pharmacies and drug stores also increased less than it had in February. Margins received by merchant wholesalers of nondurable goods and gasoline stations with convenience stores turned down in March. Conversely, the margin index for supermarkets climbed 5.1 percent after declining 1.7 percent in February. Margins received by merchant wholesalers of durable goods, automotive parts and accessories stores, and family clothing stores also moved up in March following decreases in the preceding month. The margin index for gasoline service stations fell less than it had in February. During the first quarter of 2009, the index for total trade industries rose at a 3.3-percent annualized rate, the same rate of increase as in the final quarter of 2008. In March, the index for total trade industries was 112.0 (December 2006 = 100), 6.5 percent higher than its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for the Net Output of Total Transportation and Warehousing Industries declined 1.3 percent in March after falling 0.5 percent in February. Prices received by the truck transportation industry group decreased 1.4 percent following a 0.2-percent advance in the prior month. The index for Coastal and Great Lakes freight transportation also turned down in March. Prices received by the couriers and messengers industry group increased less than they had in February. Prices received by the inland water freight transportation industry fell more in March than they had a month earlier, while the index for the U.S. Postal Service was unchanged after rising in the prior month. By contrast, the index for the scheduled air transportation industry group decreased 2.6 percent in March following a 4.4-percent drop in February. Prices received by line-haul railroads also declined less than in the preceding month. Prices received by the deep sea freight transportation industry were unchanged after falling in February, while the index for the nonscheduled air passenger chartering industry turned up in March. For the first 3 months of 2009, the total transportation and warehousing industries index decreased at a 9.8-percent annualized rate after dropping at an 18.1-percent annualized rate in the final 3 months of 2008. In March, the total transportation and warehousing industries index was 106.7 (December 2006 = 100), 2.8 percent lower than its year-ago level.
Total Traditional Service Industries. The Producer Price Index for the Net Output of Total
Traditional Service Industries moved down 0.5 percent in March following a 0.3-percent decline in February. Prices received by the industry group for depository credit intermediation fell 5.7 percent compared with a 3.1-percent decline in the preceding month. The industry group index for securities, commodity contracts, and other financial investments and related activities also fell more than it had in February. Prices received by general medical and surgical hospitals and by offices of physicians (excluding metal health) increased less in March than in the prior month. The index for real estate agents and brokers was unchanged after rising in February. Conversely, prices received by direct health and medical insurance carriers advanced 1.4 percent in March following no change in the previous month. The indexes for lessors of nonresidential buildings and for non-casino hotels and motels turned up after falling in February. For the first 3 months of 2009, the total traditional service industries index decreased at a 1.6-percent annualized rate, the same rate of decline as in the final 3 months of 2008. In March, the index for total traditional service industries was 101.5 (December 2006 = 100), unchanged from its year-ago level.
