Producer Price Index News Release text

Transmission of material in this release is embargoed until USDL 17-0961
8:30 a.m. (EDT), Thursday, July 13, 2017

Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov

PRODUCER PRICE INDEXES - JUNE 2017

The Producer Price Index for final demand increased 0.1 percent in June, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in May and
rose 0.5 percent in April. (See table A.) On an unadjusted basis, the final demand index advanced
2.0 percent for the 12 months ended in June.

In June, almost 80 percent of the rise in the final demand index is attributable to prices for final
demand services, which increased 0.2 percent. The index for final demand goods edged up 0.1
percent.

Prices for final demand less foods, energy, and trade services increased 0.2 percent in June. For
the 12 months ended in June, the index for final demand less foods, energy, and trade services
advanced 2.0 percent.

Final Demand

Final demand services: Prices for final demand services moved up 0.2 percent in June, the fourth
consecutive increase. Most of the June rise can be attributed to a 0.3-percent advance in the index for
final demand services less trade, transportation, and warehousing. Prices for final demand
transportation and warehousing services edged up 0.1 percent. In contrast, the index for final demand
trade services moved down 0.2 percent. (Trade indexes measure changes in margins received by
wholesalers and retailers.)

Product detail: A major factor in the June increase in the index for final demand services was prices
for securities brokerage, dealing, investment advice, and related services, which rose 4.0 percent. The
indexes for machinery and equipment wholesaling, loan services (partial), insurance, inpatient care,
and truck transportation of freight also advanced. Conversely, margins for apparel, footwear, and
accessories retailing declined 3.7 percent. The indexes for motor vehicle maintenance and repair
(partial) and for airline passenger services also fell. (See table 4.)

Final demand goods: Prices for final demand goods edged up 0.1 percent in June, after falling 0.5
percent in the previous month. Most of the June advance can be attributed to the index for final
demand foods, which climbed 0.6 percent. Prices for final demand goods less foods and energy
inched up 0.1 percent. In contrast, the index for final demand energy declined 0.5 percent.

Product detail: Leading the June advance in the index for final demand goods, prices for meats
increased 5.5 percent. The indexes for pharmaceutical preparations, light motor trucks, young
chickens, potatoes, and butter also moved higher. Conversely, prices for gasoline moved down 1.1
percent. The indexes for fresh vegetables (except potatoes), plastic resins and materials, and
unprocessed finfish also fell.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month	Total final demand	Final demand less foods, energy, and trade	Final demand goods				Final demand services				Change in final demand from 12 months ago (unadj.)	Change in final demand less foods, energy, and trade from 12 mo. ago (unadj.)
Month	Total final demand	Final demand less foods, energy, and trade	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2016
June	0.5	0.2	0.7	0.4	2.7	0.2	0.4	0.7	0.1	0.2	0.2	1.0
July	-0.1	0.2	-0.2	-0.7	-0.3	0.0	0.0	-0.8	0.4	0.4	0.0	1.0
Aug.	-0.2	0.1	-0.3	-1.1	-0.9	0.2	-0.2	-0.7	-0.3	0.1	0.0	1.2
Sept.	0.3	0.1	0.5	0.5	1.5	0.1	0.3	0.7	-0.7	0.2	0.6	1.3
Oct.	0.3	0.1	0.3	-0.8	2.7	0.0	0.1	0.4	0.8	0.0	1.1	1.5
Nov.	0.2	0.2	0.1	-0.6	0.2	0.3	0.3	0.2	0.4	0.2	1.3	1.8
Dec.	0.2	0.3	0.6	0.8	1.9	0.3	0.0	-0.4	1.1	0.1	1.7	1.8
2017
Jan.	0.6	0.1	1.0	0.6	4.0	0.4	0.4	1.2	0.0	0.1	1.7	1.7
Feb.(1)	0.0	0.3	0.4	0.7	0.9	0.2	-0.3	-1.2	0.4	0.2	2.0	1.8
Mar.(1)	0.1	0.0	-0.2	0.4	-3.0	0.3	0.4	1.1	-0.3	0.0	2.3	1.7
Apr.	0.5	0.7	0.5	0.9	0.8	0.3	0.4	-0.3	0.7	0.8	2.5	2.1
May	0.0	-0.1	-0.5	-0.2	-3.0	0.1	0.3	1.1	-0.5	-0.1	2.4	2.1
June	0.1	0.2	0.1	0.6	-0.5	0.1	0.2	-0.2	0.1	0.3	2.0	2.0
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate demand by Commodity Type

Within intermediate demand in June, prices for processed goods moved down 0.2 percent, the index
for unprocessed goods rose 1.5 percent, and prices for services increased 0.6 percent. (See tables B
and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate
demand fell 0.2 percent in June, the largest decrease since a 0.3 percent drop in March. Most of the
June decline is attributable to prices for processed materials less foods and energy, which moved
down 0.2 percent. Additionally, the index for processed energy goods fell 0.6 percent. In contrast,
prices for processed foods and feeds increased 1.2 percent. For the 12 months ended in June, the
index for processed goods for intermediate demand rose 3.8 percent.

Product detail: About 40 percent of the June decline in the index for processed goods for
intermediate demand can be traced to prices for primary basic organic chemicals, which fell 2.3
percent. The indexes for plastic resins and materials, industrial electric power, commercial electric
power, prepared animal feeds, and diesel fuel also moved lower. Conversely, prices for meats rose
5.5 percent. The indexes for paperboard and natural gas to electric utilities also increased. (See table
5.)

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate
demand rose 1.5 percent in June following a 3.0-percent decline in May. Over 80 percent of the
increase can be attributed to prices for unprocessed energy materials, which advanced 3.6 percent.
The indexes for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less
energy moved up 0.3 percent and 0.5 percent, respectively. For the 12 months ended in June, the
index for unprocessed goods for intermediate demand climbed 6.3 percent.

Product detail: Leading the June advance in the index for unprocessed goods for intermediate
demand, prices for crude petroleum increased 8.9 percent. The indexes for slaughter barrows and
gilts, slaughter chickens, hay and hayseeds, wheat, and wastepaper also rose. In contrast, prices for
oilseeds dropped 5.1 percent. The indexes for unprocessed finfish and raw cotton also declined.

Table B. Monthly and 12-month percent changes in selected intermediate demand price indexes for goods by commodity type, seasonally adjusted
Month	Processed goods for intermediate demand					Unprocessed goods for intermediate demand
Month	Total	Foods and feeds	Energy goods	Less foods and energy	Total, change from 12 months ago (unadj.)	Total	Foodstuffs and feedstuffs	Energy materials	Nonfood materials less energy	Total, change from 12 months ago (unadj.)
2016
June	0.8	1.3	3.5	0.2	-4.1	2.5	1.3	6.4	-0.2	-10.8
July	0.2	-0.4	0.6	0.1	-3.7	0.8	-2.1	5.6	0.6	-7.6
Aug.	-0.1	-1.1	-1.3	0.3	-3.0	-2.1	-2.1	-4.0	0.3	-6.5
Sept.	0.3	-0.3	1.7	0.1	-1.3	-0.6	-2.1	2.7	-2.0	-4.9
Oct.	0.3	-0.9	1.5	0.2	-0.6	-0.7	-5.9	5.8	-1.3	-4.4
Nov.	0.2	-0.3	-0.1	0.4	0.1	0.6	5.2	-5.8	2.5	1.0
Dec.	0.6	1.3	1.3	0.4	1.8	7.3	4.8	13.4	3.4	13.0
2017
Jan.	1.2	0.5	5.4	0.3	4.0	3.8	2.1	6.7	3.3	17.4
Feb.(1)	0.7	0.4	0.8	0.7	5.4	-0.1	2.6	-4.2	1.0	19.2
Mar.(1)	-0.3	0.2	-3.0	0.3	5.3	-4.1	-0.7	-12.9	2.3	12.7
Apr.	0.5	-0.6	1.3	0.5	5.4	3.3	-2.3	14.1	-0.7	13.9
May	0.1	0.5	-0.3	0.2	4.8	-3.0	1.8	-9.3	-0.7	7.5
June	-0.2	1.2	-0.6	-0.2	3.8	1.5	0.3	3.6	0.5	6.3
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Services for intermediate demand: The index for services for intermediate demand advanced 0.6 
percent in June after no change in May. Leading the increase, prices for services less trade, 
transportation, and warehousing for intermediate demand rose 0.8 percent. Margins for trade services 
for intermediate demand increased 0.3 percent, while the index for transportation and warehousing 
services for intermediate demand was unchanged. For the 12 months ended in June, prices for 
services for intermediate demand climbed 2.9 percent, the largest rise since advancing 2.9 percent in 
the 12 months ended December 2012.

Product detail: In June, nearly half of the increase in prices for services for intermediate demand can 
be traced to the index for securities brokerage, dealing, investment advice, and related services, 
which rose 4.0 percent. The indexes for business loans (partial); metals, minerals, and ores 
wholesaling; portfolio management; insurance; and chemicals and allied products wholesaling also 
moved higher. Conversely, margins for food and alcohol wholesaling fell 1.0 percent. The indexes 
for cable network advertising time sales and for warehousing, storage, and related services also 
declined.

Table C. Monthly and 12-month percent changes in selected intermediate demand price indexes for services by commodity type, seasonally adjusted
Month	Services for intermediate demand
Month	Total	Trade	Transportation and warehousing	Other	Total, change from 12 months ago (unadj.)
2016
June	0.4	1.1	0.2	0.4	1.4
July	0.4	0.2	0.3	0.5	1.7
Aug.	-0.2	-1.6	0.0	0.2	1.3
Sept.	-0.1	-0.3	-0.7	0.1	1.8
Oct.	0.1	-0.2	0.3	0.0	2.4
Nov.	0.4	0.0	0.3	0.6	2.6
Dec.	0.2	1.1	0.7	-0.2	2.6
2017
Jan.	0.4	0.2	0.1	0.5	1.7
Feb.(1)	0.4	1.1	0.6	0.3	2.1
Mar.(1)	-0.3	-0.4	0.1	-0.3	1.7
Apr.	0.9	0.7	0.4	1.0	2.6
May	0.0	1.1	-0.1	-0.3	2.8
June	0.6	0.3	0.0	0.8	2.9
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2017 have been revised to reflect the availability of late reports and corrections by respondents.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: The index for stage 4 intermediate demand moved up 0.3 percent in
June following a 0.2-percent increase in May. In June, prices for total services inputs to stage 4
intermediate demand rose 0.5 percent, and the index for total goods inputs was unchanged. (See table
D.) Advances in the indexes for securities brokerage, dealing investment advice and related services;
business loans (partial); meats; metals, minerals, and ores wholesaling; paper boxes and containers;
and portfolio management outweighed decreases in the indexes for industrial electric power,
unprocessed finfish, and food and alcohol wholesaling. (See table 6.) For the 12 months ended in
June, prices for stage 4 intermediate demand climbed 2.8 percent.

Stage 3 intermediate demand: Prices for stage 3 intermediate demand rose 0.3 percent in June the
largest advance since a 0.9-pecrcent increase in February. In June, the index for total services inputs
to stage 3 intermediate demand climbed 0.5 percent, while prices for total goods inputs were
unchanged. Increases in the indexes for securities brokerage, dealing, investment, advice and related
services; slaughter barrows and gilts; slaughter chickens; business loans (partial); metals, minerals,
and ores wholesaling; and salughter cows and bulls outweighed declines in the indexes for primary
basic organic chemicals, slaughter steers and heifers, and food and alcohol wholesaling. For the 12
months ended in June, prices for stage 3 intermediate demand rose 3.3 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand moved up 0.5 percent in
June after dropping 1.0 percent in May. In June, prices for total goods inputs to stage 2 intermediate
demand increased 0.7 percent, and the index for total services inputs advanced 0.4 percent. Higher
prices for crude petroleum; securities brokerage, dealing, investment advice and related services;
paperboard, portfolio management; temporary help services; and wheat outweighed decreases in the
indexes for plastic resins and materials, oilseeds, and cable network advertising time sales. For the 12
months ended in June, the index for stage 2 intermediate demand rose 4.2 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand increased 0.2 percent in June
following a 0.3-percent decrease in May. In June, the index for total services inputs to stage 1
intermediate demand advanced 0.9 percent, and prices for total goods inputs moved down 0.4
percent. Increases in the indexes for business loans (partial); securities brokerage, dealing,
investment advice and related services; wastepaper; metals, minerals, and ores wholesaling; crude
petroleum; and chemicals and allied products wholesaling outweighed decreases in the indexes for
primary basic organic chemicals, diesel fuel, and cleaning supplies and paper products retailing. For
the 12 months ended in June, prices for stage 1 intermediate demand rose 4.5 percent.

Table D. Monthly percent changes in selected intermediate demand price indexes by production flow, seasonally adjusted
Month	Stage 4 intermediate demand			Stage 3 intermediate demand			Stage 2 intermediate demand			Stage 1 intermediate demand
Month	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs	Total	Goods inputs	Services inputs
2016
June	0.5	0.6	0.5	0.8	1.1	0.4	1.1	2.5	0.2	0.9	0.9	0.9
July	0.2	0.1	0.4	0.2	0.1	0.4	0.9	1.2	0.6	0.1	0.0	0.3
Aug.	-0.2	-0.1	-0.3	-0.6	-0.7	-0.4	-0.5	-1.1	-0.1	-0.5	-0.3	-0.7
Sept.	0.1	0.2	-0.1	-0.1	-0.1	-0.1	0.3	0.7	-0.1	0.1	0.2	-0.1
Oct.	0.1	-0.1	0.2	-0.5	-0.8	-0.1	1.0	2.2	0.2	0.0	0.2	-0.3
Nov.	0.2	0.2	0.3	1.1	1.7	0.6	-0.4	-1.5	0.4	0.8	1.0	0.5
Dec.	0.4	0.4	0.3	1.2	2.2	0.2	2.0	4.5	0.3	1.4	2.1	0.4
2017
Jan.	0.6	0.8	0.5	1.1	1.8	0.3	1.3	2.5	0.4	1.3	2.1	0.4
Feb.(1)	0.5	0.5	0.5	0.9	1.4	0.5	0.0	-0.3	0.3	0.7	0.9	0.4
Mar.(1)	-0.2	0.0	-0.2	-0.3	-0.4	-0.3	-1.9	-4.4	-0.1	-0.3	0.1	-0.6
Apr.	0.6	0.3	0.9	0.1	-0.6	0.9	2.2	4.1	0.8	0.9	0.4	1.3
May	0.2	0.3	0.1	-0.2	-0.4	0.0	-1.0	-2.4	0.0	-0.3	-0.1	-0.3
June	0.3	0.0	0.5	0.3	0.0	0.5	0.5	0.7	0.4	0.2	-0.4	0.9
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for February 2017 have been revised to reflect the availability of late reports and corrections by respondents.

________________
The Producer Price Index for July 2017 is scheduled to be released on Thursday, August 
10, 2017 at 8:30 a.m. (EDT).
 
                                               *****

                                      Resampling of Industries

Effective with the release of data for June 2017, the Producer Price Index (PPI) includes data for 
30 resampled industries classified according to the 2012 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 regular 
intervals.  
      
For information on index additions, deletions, and recodes effective June 2017, see the current 
issue of the PPI Detailed Report online at www.bls.gov/ppi/ppidr201706.pdf, or contact the 
PPI's Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

NAICS
Code                    Industry
236224        New health care building construction
311513        Cheese manufacturing
311615        Poultry processing
311920        Coffee and tea manufacturing
311942        Spice and extract manufacturing
313310        Textile and fabric finishing mills
315210        Cut and sew apparel contractors
322211        Corrugated and solid fiber box manufacturing
325412        Pharmaceutical preparation manufacturing
325414        Other biological product manufacturing
325612        Polish and other sanitation good manufacturing
325910        Printing ink manufacturing
325920        Explosives manufacturing
326121        Unlaminated plastics profile shape manufacturing
326220        Rubber and plastics hose and belting manufacturing
327320        Ready-mix concrete manufacturing
327420        Gypsum product manufacturing
327910        Abrasive product manufacturing
331529        Other nonferrous metal foundries, except die-casting
332323        Ornamental and architectural metal work manufacturing
334510        Electromedical apparatus manufacturing
335932        Noncurrent-carrying wiring device manufacturing
336110        Automobile, light truck and utility vehicle manufacturing
336330        Motor vehicle steering and suspension parts manufacturing
336340        Motor vehicle brake system manufacturing
336350        Motor vehicle power train components manufacturing
337211        Wood office furniture manufacturing
339950        Sign manufacturing
493120        Refrigerated warehousing and storage
524126        Direct property and casualty insurers

                                                  *****

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