Producer Price Index for final demand decreased 0.2 percent for the year ended July 2016

August 17, 2016

The Producer Price Index for final demand decreased 0.2 percent from July 2015 to July 2016, after an increase of 0.3 percent for the year ending June 2016. The index for final demand goods decreased 2.3 percent, led by a decrease of 11.7 percent in prices for final demand energy.

Producer Price Indexes for final demand, percent change, July 2015–July 2016
Grouping 12-month percent change

Final demand goods

-2.3%

Final demand foods

-2.6

Finished consumer foods

-2.1

Government purchased foods

-2.9

Foods for export

-5.5

Final demand energy

-11.7

Finished consumer energy goods

-11.0

Government purchased energy

-13.9

Energy for export

-19.2

Final demand goods less foods and energy

0.4

Finished goods less foods and energy

1.0

Government purchased goods, excluding foods and energy

-0.1

Goods for export, excluding foods and energy

-0.9

Final demand services

1.0

Final demand trade services

0.7

Trade of finished goods

0.6

Trade of government purchased goods

1.8

Trade of exports

1.5

Final demand transportation and warehousing services

-2.3

Transportation of passengers for final demand

-3.8

Transportation and warehousing of goods for final demand

-1.9

Final demand services less trade, transportation, and warehousing

1.5

Finished services less trade, transportation, and warehousing

1.4

Government purchased services less trade, transportation, and warehousing

2.0

Services for export less trade, transportation, and warehousing

3.9

Final demand construction

0.8

Construction for private capital investment

0.9

Construction for government

0.4

Within final demand energy, the producer price indexes for finished consumer energy goods (−11.0 percent), government purchased energy (−13.9 percent), and energy for export (−19.2 percent) all decreased from July 2015 to July 2016.

For the year ended July 2016, the index for final demand services increased 1.0 percent. The index for trade services, which measures changes in the margins wholesalers and retailers receive, increased 0.7 percent. Prices for transportation and warehousing services decreased 2.3 percent, the seventeenth straight 12-month decrease.

These data are from the Producer Price Indexes program. To learn more, see "Producer Price Indexes — July 2016" (HTML) (PDF). All producer price indexes are subject to revision once, 4 months after original publication; these revisions reflect late reports and corrections by respondents. Producer price indexes measure prices U.S. producers receive for goods, services, and construction.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Producer Price Index for final demand decreased 0.2 percent for the year ended July 2016 on the Internet at https://www.bls.gov/opub/ted/2016/producer-price-index-for-final-demand-decreased-0-point-2-percent-for-the-year-ended-july-2016.htm (visited September 19, 2019).

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