Final demand producer price index unchanged for the 12 months ended in April 2016

May 17, 2016

The Producer Price Index for final demand was unchanged, 0.0 percent, for the 12 months ended in April 2016. Prices for final demand goods decreased 1.9 percent over the year. The relative importance value, which shows how buyers distribute expenditures among the groupings that make up the total, for final demand goods was 33.6; thus final demand goods accounted for about a third of total final demand purchases. The index for final demand services, which had a relative importance of 64.3, increased 1.0 percent. The index for construction (relative importance 2.1) increased 1.9 percent over the same period.

Producer Price Indexes for final demand, percent change, April 2015–April 2016
Grouping Relative importance
(December 2015)
12-month percent change

Final demand total

100.000 0.0

Final demand goods

33.597 -1.9

Foods

5.559 -2.0

Energy

5.226 -12.0

Goods less food and energy

22.812 0.6

Final demand services

64.318 1.0

Trade

20.361 1.0

Transportation and warehousing

4.987 -2.3

Services less trade, transportation, and warehousing

38.970 1.5

Construction

2.083 1.9

Note: These data are not seasonally adjusted. Producer price indexes are subject to revision 4 months after original publication.

Within the final demand goods grouping, the indexes for foods and energy both decreased over the 12 months ended in April (foods, -2.0 percent; energy, -12.0 percent). The index for final demand goods less food and energy edged up 0.6 percent over the year.

The index for trade services increased 1.0 percent over the year, while the index for transportation and warehousing services decreased 2.3 percent. The services less trade, transportation, and warehousing index increased 1.5 percent.

These data are from the Producer Price Indexes program. To learn more, see "Producer Price Indexes — April 2016" (HTML) (PDF). These data are not seasonally adjusted. All producer price indexes are subject to revision once, 4 months after initial publication. Producer price indexes measure the average change over time in the selling prices received by domestic producers for their output. The relative importance of a component of the PPI represents its value weight that is allocated to the final demand category, expressed as a percentage of the total weight of the category.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Final demand producer price index unchanged for the 12 months ended in April 2016 on the Internet at https://www.bls.gov/opub/ted/2016/final-demand-producer-price-index-unchanged-for-the-12-months-ended-in-april-2016.htm (visited September 22, 2019).

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