The slower rate of decline in finished goods prices was led by the index for energy goods, which decreased 2.9 percent after falling 4.6 percent in August. Price advances for finished goods less foods and energy accelerated to 0.4 percent from 0.2 percent a month earlier. Conversely, the rise in the index for finished consumer foods slowed to 0.2 percent in September from 0.3 percent in the prior month.
During the third quarter of 2008, the finished goods index fell at a 0.4-percent seasonally adjusted annual rate (SAAR), after climbing at a 14.6-percent SAAR during the second quarter. Much of this downturn can be attributed to the index for finished energy goods, which decreased at a 16.7-percent SAAR for the 3 months ended in September after jumping at a 51.6-percent SAAR for the 3 months ended in June. Prices for finished consumer foods moved up at a 3.1-percent SAAR during the third quarter after rising at a 9.2-percent SAAR during the second quarter. Conversely, the index for finished goods less foods and energy advanced at a 5.4-percent SAAR for the 3 months ended in September after increasing at a 4.4-percent SAAR for the 3 months ended in June. At the earlier stages of processing, the intermediate goods index moved up at a 2.1-percent SAAR during the third quarter after surging at a 25.7-percent SAAR in the second quarter, and prices for crude goods decreased at a 48.9-percent SAAR for the 3 months ended in September after jumping at a 79.1-percent SAAR for the 3 months ended in June.
Before seasonal adjustment, the Producer Price Index for Finished Goods fell 0.1 percent
in September to 182.0 (1982 = 100). From September 2007 to September 2008, finished goods prices climbed 8.7 percent. Over the same period, the index for finished energy goods increased 22.4 percent, prices for finished consumer foods moved up 8.1-percent, and the index for finished goods less foods and energy advanced 4.0 percent. For the 12 months ended in September, prices received by manufacturers of intermediate goods rose 15.4 percent, and the crude goods index increased 26.0 percent.
Finished goods
The decline in the finished energy goods index slowed to 2.9 percent from 4.6 percent in August. The index for gasoline fell 0.5 percent in September after moving down 3.5 percent a month earlier. Prices for liquefied petroleum gas and diesel fuel also decreased less than in the preceding month. The index for kerosene turned up in September after falling in the prior month. By contrast, partially offsetting the slowing declines in finished energy goods prices, the index for residential natural gas dropped 8.2 percent after moving down 5.0 percent in August. Prices for asphalt and finished lubricants rose less than in the previous month. The index for residential electric power turned down in September after advancing a month earlier.
The increase in the index for finished goods less foods and energy accelerated to 0.4 percent from 0.2 percent in August. The index for light motor trucks turned up 1.0 percent after falling 1.9 percent in the previous month. Prices for passenger cars also rose after declining a
month earlier. The index for pharmaceutical preparations advanced more in September than in the preceding month. By contrast, the index for pet food turned down 0.2 percent after increasing 3.3 percent in August. Prices for periodical circulation; motor homes built on purchased chassis; women's, girls', and infants' apparel; and office and store machines and equipment also fell after rising in the prior month.
The index for finished consumer foods climbed 0.2 percent after rising 0.3 percent in August. In September, higher prices for fresh and dry vegetables, snack chips, sausage and deli meats, and eggs for fresh use outweighed lower prices for beef and veal, natural cheese (except cottage cheese), fats and oils, and strawberries.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components fell 1.2 percent in September following a 1.0-percent decrease in the previous month. Prices for materials for both nondurable and durable manufacturing turned down in September. The index for materials and components for construction rose less than it had in August, while prices for intermediate foods and feeds declined more in September than they had a month earlier. Conversely, partially counteracting the faster rate of decrease in prices for intermediate goods, the index for intermediate energy foods fell less in September than in August. Excluding foods and energy, prices for intermediate goods moved down 0.3 percent in September after climbing 1.7 percent in the preceding month.
The index for materials for nondurable manufacturing dropped 2.9 percent in September following a 5.2-percent jump in the previous month. Leading this downturn, prices for basic organic chemicals fell 4.8 percent after increasing 6.3 percent in August. The indexes for plastic resins and materials, woodpulp, and meats also declined in September following increases in the prior month. Prices for agricultural chemicals and chemical products, non-corrugated paperboard, and writing and printing papers rose less than they had in August. Conversely, the index for medicinal and botanical chemicals advanced 10.9 percent in September after moving up 1.8 percent a month earlier. Prices for potassium and sodium compounds and for synthetic fibers also increased more than they had in August. The index for materials for nondurable manufacturing climbed at a 34.7-percent SAAR for the 3 months ended in September after rising at a 30.8-percent SAAR for the 3 months ended in June.
The index for materials for durable manufacturing decreased 3.2 percent in September following a 0.4-percent advance in the previous month. Leading this downturn, prices for steel mill products dropped 3.6 percent after rising 2.2 percent in August. The indexes for aluminum mill shapes, plastic resins and materials, secondary aluminum, and basic organic chemicals also fell in September following increases a month earlier. Prices for primary nonferrous metals and for copper and brass mill shapes declined more than they had in August. The index for prepared paint rose less than in the prior month. Conversely, the synthetic fibers index climbed 3.7 percent in September after advancing 1.1 percent in the preceding month. Prices for adhesives and sealants also rose more than in August. Prices for materials for durable manufacturing declined at a 5.4-percent SAAR during the third quarter of 2008 after surging at a 35.8-percent SAAR during the second quarter.
The index for materials and components for construction rose 0.7 percent in September following a 1.5-percent gain in the prior month. Prices for paving mixtures and blocks moved up 3.1 percent after advancing 9.6 percent in August. The index for asphalt felts and coatings also increased less in September than it had a month earlier. Prices for steel mill products; nonferrous wire and cable; and metal doors, sash, and trim turned down after rising in August. The index for fabricated structural metal was unchanged in September following an increase in the preceding month. By contrast, prices for ready mixed concrete advanced 1.4 percent after moving down 0.3 percent in August. The index for custom roll-formed metal products also turned up in September. Prices for architectural and ornamental metalwork rose more than they had in August. The index for materials and components for construction climbed at a 16.9-percent SAAR for the 3 months ended in September after moving up at a 19.5-percent SAAR for the 3 months ended in June.
The index for intermediate foods and feeds fell 0.9 percent in September following a 0.2-percent decline in the previous month. Meat prices decreased 0.6 percent after increasing 4.4 percent in August. The index for flour and flour-base mixes and doughs also turned down in
September. Prices for formula feeds, natural cheese (except cottage cheese), and shortening and cooking oils fell more than they had in August. By contrast, the processed eggs index jumped 12.8 percent in September following a 4.7-percent decline a month earlier. Prices for snack chips and for corn, cottonseed, and soybean cake and meal advanced more than they had in August. The index for packaged fluid milk and related products fell less than in the preceding month. The index for intermediate foods and feeds moved up at a 12.1-percent SAAR during the third quarter after rising at a 14.0-percent SAAR during the second quarter.
The index for intermediate energy goods fell 3.8 percent in September following an 8.2-percent decrease in the prior month. Jet fuel prices moved down 3.2 percent after dropping 24.9 percent in August. The indexes for diesel fuel, gasoline, natural gas to electric utilities, residual fuels, liquefied petroleum gas, and commercial natural gas also declined less in September than they had a month earlier. By contrast, prices for industrial electric power fell 1.4 percent following a 0.7-percent increase in August. The asphalt index rose less in September than it had in the preceding month, while prices for commercial electric power were unchanged after advancing in August. The index for intermediate energy goods decreased at a 28.2-percent SAAR for the 3 months ended in September after jumping at a 55.4-percent SAAR for the 3 months ended in June.
Crude goods
The Producer Price Index for Crude Materials for Further Processing declined 7.9 percent in September following an 11.9-percent drop in the prior month. Prices for crude energy materials and for crude foodstuffs and feedstuffs fell less than they had in the previous month. By contrast, slightly counteracting the slower rate of decline in the crude goods index, prices for crude nonfood materials less energy decreased more than in August.
The index for crude energy materials fell 11.7 percent in September subsequent to a 19.4-percent decrease in the preceding month. Crude petroleum prices moved down 9.0 percent following a 17.6-percent drop in the previous month. The natural gas index declined 16.5 percent after tumbling 23.9 percent in August. By contrast, prices for coal rose 0.7 percent compared with a 2.7-percent increase a month earlier. During the third quarter of 2008, the crude energy materials index decreased at a 66.5-percent SAAR after surging at a 152.2-percent SAAR in the second quarter.
Prices for crude foodstuffs and feedstuffs moved down 1.1 percent in September compared with a 5.2-percent decline in the preceding month. The corn index fell 1.9 percent after dropping 14.6 percent in August. The indexes for soybeans and for slaughter broilers and fryers also fell less than they had a month earlier. Prices for fresh and dry vegetables turned up in September, and the index for ungraded chicken eggs rose more than in August. By contrast, prices for slaughter hogs declined 10.8 percent subsequent to a 20.1-percent gain in August. The indexes for slaughter steers and heifers, wheat, slaughter cows and bulls, and alfalfa hay also turned down in September. The crude foodstuffs and feedstuffs index fell at a 22.5-percent SAAR during the third quarter of 2008 after rising at a 15.3-percent SAAR in the prior quarter.
The index for crude nonfood materials less energy declined 9.4 percent following a 1.9-percent decrease in August. Carbon steel scrap prices dropped 22.5 percent in September after falling 3.4 percent in the previous month. The index for aluminum base scrap also fell more than in August. The index for copper ores turned down in September, and prices for phosphates increased less than in the preceding month. By contrast, prices for plant and animal fibers increased 8.7 percent compared with a 1.5-percent decline in August. The indexes for corrugated wastepaper and for stainless and alloy steel scrap also turned up in September. Prices for soybeans and gold ores fell less than they had in August. For the 3 months ended September 2008, the index for crude nonfood materials less energy declined at a 28.4-percent SAAR after increasing at a 62.2-percent SAAR in the 3 months ended in June.
Net output price indexes
Mining, Utilities, and Manufacturing Industries. The Producer Price Index for the Net Output of Total Mining, Utilities, and Manufacturing Industries moved down 0.5 percent compared with a 1.4-percent decrease in August. (Net output price indexes are not seasonally adjusted.) The industry index for petroleum refineries declined 0.9 percent after falling 11.4 percent a month earlier. Similarly, prices received by the industries for crude petroleum and natural gas extraction and for natural gas distribution also decreased less than they had in the prior month. The industry index for automotive, light truck, and utility vehicle manufacturing turned up in September, and prices received by medicinal and botanical manufacturers rose more than in August. By contrast, partially offsetting the slower rate of decline in the index for Total Mining, Utilities, and Manufacturing Industries, the index for the electric power generation industry fell 10.0 percent in September following an 8.1-percent gain in the preceding month. Prices received by the industries for livestock slaughtering and petrochemicals manufacturing also declined after rising a month earlier. The phosphatic fertilizer manufacturing industry index increased less than it had in August. For the 3 months ended September 2008, the total mining, utilities, and manufacturing industries index advanced at a 1.0-percent annual rate after rising at a 23.2-percent annual rate for the 3 months ended in June. In September, the index for total mining, utilities, and manufacturing industries was 116.6 (December 2006 = 100), 11.7 percent above its year-ago level.
Trade Industries. The Producer Price Index for the Net Output of Total Trade Industries declined 1.2 percent in September subsequent to a 2.1-percent rise in August. (Trade indexes measure changes in margins received by wholesalers and retailers.) Leading this downturn, the margin index for merchant wholesalers of nondurable goods fell 5.7 percent after climbing 7.9 percent in the prior month. Margins received by merchant wholesalers of durable goods and fuel dealers also turned down in September. The margin indexes for gasoline stations with convenience stores and recreation vehicle dealers increased less than they had a month earlier. By contrast, the margin index for shoe stores advanced 7.5 percent following a 7.2-percent decrease in August. Margins received by office supplies and stationery stores and by family clothing stores also turned up in September. The margin index for pharmacies and drug stores was unchanged after declining in August and margins received by new car dealers fell less than they had a month earlier. During the third quarter of 2008, the total trade industries index increased at an 8.3-percent annual rate subsequent to rising at a 14.8-percent annual rate in the second quarter. In September, the index for total trade industries was 111.1 (December 2006 = 100), 7.0 percent above its year-ago level.
Transportation and Warehousing Industries. The Producer Price Index for Total Transportation and Warehousing Industries moved down 0.9 percent in September after edging up 0.2 percent in August. The index for the scheduled air transportation industry group declined 2.2 percent compared with a 0.9-percent advance in the previous month. Prices received by the long distance general freight trucking industry group decreased more than in August. The industry indexes for couriers, deep sea freight transportation, and line-haul railroads increased less than they had a month earlier. Prices received by the industry for local trucking of specialized new freight were unchanged after advancing in August. By contrast, the industry index for Coastal and Great Lakes freight transportation rose 1.2 percent in September after falling 2.3 percent in the preceding month. Prices received by inland water freight transporters increased more than in August and the industry index for long distance specialized new freight trucking declined less in September than it had in the prior month. During the third quarter of 2008, the transportation and warehousing industries index was unchanged after rising at a 20.3-percent annual rate in the second quarter. In September, the index for total transportation and warehousing industries was 115.0 (December 2006 = 100), 10.0 percent above it year-ago level.
Traditional Service Industries. The Producer Price Index for Total Traditional Service Industries edged down 0.2 percent after rising 0.7 percent in August. Prices received by the accommodation industry group moved down 5.1 percent subsequent to a 0.3-percent decrease a month earlier. The indexes for the depository credit intermediation industry group and for the investment banking and securities dealing industry increased less than they had in the prior month. Prices received by software publishers and by cellular and wireless carriers turned down in September. The industry index for direct life insurance carriers was unchanged after rising in August. By contrast, the index for the general medical and surgical hospitals industry advanced 0.2 percent after edging down 0.1 percent in the preceding month. Prices received by the industry for offices of real estate agents and brokers were unchanged in September after falling in the prior month, and the portfolio management industry index fell less than in August. The index for total traditional service industries increased at a 1.2-percent annual rate during the third quarter of 2008 subsequent to rising at a 2.0-percent annual rate during the second quarter. In September, the index for total traditional service industries was 102.3 (December 2006 = 100), 0.1 percent above its year-ago level.
