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Producer Price Indexes
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PPI Final Demand‐Intermediate Demand by Commodity Type Aggregation Structure
Introduction
Inherent in the Final Demand–Intermediate Demand by Commodity Type categorization are the concepts of type of buyer and type of commodity. The two main buyer types are final-demand buyers and intermediate-demand buyers. Final-demand buyers include consumers, government, and foreigners, as well as domestic industries that purchase the commodity as capital investment. Intermediate demand buyers consist of domestic industries that purchase the commodity as an input to production, excluding capital investment.
The Final Demand–Intermediate Demand by Commodity Type system consists of five major portions differentiated by the type of commodity and class of buyer. These categories are
- processed goods for intermediate demand
- unprocessed goods for intermediate demand
- services for intermediate demand
- construction for intermediate demand
- final demand
The full structure is provided below. Direct weight allocations are made to the FD–ID categories which are italicized. Definitions of the detailed indexes follow the listing of their respective structure. Visit the FD-ID Aggregation System webpage for more information pertaining to the system, including detail on Intermediate Demand by Production Flow.
Processed Goods for Intermediate Demand
Types of Commodities and Class of Buyer
Processed goods include goods that have been subjected to a treatment or series of treatments that in some way alters the initial physical nature or function of the goods. Mixing goods or assembling components is considered processing because, though the good itself is not changed, its function or usefulness is altered.
Processed goods for intermediate demand include fabricated goods purchased by businesses as inputs to production, excluding capital investment.
Structure of Processed Goods for Intermediate Demand
| Index Code | Title |
|---|---|
| ID61 | Processed Goods for Intermediate Demand |
Materials and Components for Manufacturing | |
Materials for Manufacturing | |
Materials for Food Manufacturing | |
Materials for Nondurable Manufacturing | |
Materials for Durable Manufacturing | |
Components for Manufacturing | |
Components for Nondurable Manufacturing | |
Components for Durable Manufacturing | |
Materials and Components for Construction | |
Materials for Construction | |
Components for Construction | |
Processed Fuels and Lubricants for Intermediate Demand | |
Processed Fuels and Lubricants for Manufacturing Industries | |
Processed Fuels and Lubricants for Nonmanufacturing Industries | |
Containers for Intermediate Demand | |
Supplies for Intermediate Demand | |
Supplies to Manufacturing Industries | |
Supplies to Nonmanufacturing Industries | |
Supplies to Nonmanufacturing Industries, Feeds | |
Supplies to Nonmanufacturing Industries, Other than Feeds |
Definitions of Processed Goods for Intermediate Demand
ID61111 Materials for Food Manufacturing
contains partially processed food products that must undergo further preparation before reaching the final customer. Examples of materials for food manufacturing include milk products, canned or frozen fruits and vegetables, processed sugars, and certain chemicals.
ID61112 Materials for Nondurable Manufacturing
contains partially processed products that will undergo further preparation or usage in the manufacture of goods which have a life expectancy of less than 3 years. Examples of materials for nondurables manufacturing include cotton yarn used for shirts and wood pulp used to make paper.
ID61113 Materials for Durable Manufacturing
contains partially processed products that will undergo further preparation or usage in the manufacture of goods that have a life expectancy of more than 3 years. Examples of materials for durable manufacturing include textile materials, lumber, metals, and cement.
ID61121 Components for Nondurable Manufacturing
includes products, such as buttons and springs that are completely finished except for installation or assembly into a larger nondurable item. Nondurable goods are considered to have a life expectancy of less than 3 years.
ID61122 Components for Durable Manufacturing
includes products, such as pumps, valves, and fittings that are completely finished except for installation or assembly into a larger durable item. Durable goods are considered to have a life expectancy of 3 years or more.
ID6121 Materials for Construction
includes partially finished products that will undergo further preparation into a construction product. This usage is specifically defined in the I-O tables. Examples include lumber, concrete pipe, and architectural coatings.
ID6122 Components for Construction
includes completely finished products that will undergo installation into a construction product. This usage is specifically defined in the I–O tables. Examples include metal doors and water heaters.
ID6131 Processed Fuels and Lubricants for Manufacturing Industries
includes fuel and related products used in manufacturing industries to generate heat and power and for lubrication. Examples include industrial electric power, industrial natural gas, gasoline, diesel fuel, and greases and oils.
ID6132 Processed Fuels and Lubricants for Nonmanufacturing Industries
includes fuel and related products used in nonmanufacturing industries to generate heat and power and for lubrication. Examples include commercial electric power, commercial natural gas, jet fuel, diesel fuel, and greases and oils.
ID614 Containers for Intermediate Demand
contains paper, wood, plastic, metal, and glass receptacles used to ease the transport of unwieldy items.
ID6151 Supplies to Manufacturing Industries
includes products consumed in the manufacturing industries during the course of production or distribution of other items but not physically incorporated in those items. These products are distinguished from capital equipment in that they are not amortized. Examples of supplies for manufacturing industries include plastic packaging, small cutting tools, and machinery.
ID61521 Supplies to Nonmanufacturing Industries, Feeds
includes feed products consumed by animals in the livestock industry. Examples of manufactured animal feeds include poultry feed, hog feed, vegetable cakes, and meal fee.
ID61522 Supplies to Nonmanufacturing Industries, Other than Feeds
includes products used in the nonmanufacturing sector other than the animal feed industry, which are consumed during the course of production or distribution of other items but not physically incorporated in those items. Examples include sedatives for hospitals, tires, motor vehicle parts for auto repair shops, and photographic supplies.
Unprocessed Goods for Intermediate Demand
Types of Commodities and Class of Buyer
Unprocessed goods are goods that have undergone no fabrication. For PPI purposes, unprocessed goods can be subject to picking, sorting, washing, packing, or transporting.
Unprocessed goods for intermediate demand are goods that have undergone no fabrication and are purchased by businesses as inputs to production.
Structure of Unprocessed Goods for Intermediate Demand
| Index Code | Title |
|---|---|
| ID62 | Unprocessed Goods for Intermediate Demand |
Unprocessed Foodstuffs and Feedstuffs | |
Unprocessed Nonfood Materials | |
Unprocessed Nonfood Materials, Except Fuel | |
Unprocessed Nonfood Materials, Except Fuel to Manufacturing Industries | |
Unprocessed Nonfood Materials, Except Fuel to Nonmanufacturing Industries | |
Unprocessed Fuel | |
Unprocessed Fuel to Manufacturing Industries | |
Unprocessed Fuel to Nonmanufacturing Industries |
Definitions of Unprocessed Goods for Intermediate Demand
ID621 Unprocessed Foodstuffs and Feedstuffs
contains basic agricultural products that will undergo some processing prior to becoming completed food products, as well agricultural products consumed directly by the agricultural sector. Examples include fresh fruit that will be canned or raw corn consumed by livestock as animal feed. Other examples would be cattle, hogs, or chickens intended for slaughter, or raw cane sugar that will be refined.
ID62211 Unprocessed Nonfood Materials, Except Fuel to Manufacturing Industries
contains minerals, agricultural products, and scrap materials that are intended to be used in a manufacturing process other than manufacturing of foods. Raw cotton that will be turned into yarn, or aluminum base scrap that will end up as refined aluminum, are examples of this category. Crude petroleum is contained in this grouping rather than in Crude Fuels, because it is not used as a fuel in its crude state; it can be used as a raw material in manufacturing (for example, synthetic rubber or pharmaceuticals). Also included in the category are agricultural inputs to manufactures of pet foods and alcoholic beverages.
ID62212 Unprocessed Nonfood Materials, Except Fuel to Nonmanufacturing Industries
includes products such as sand, gravel, and crushed stone primarily used in the construction industry.
ID62221 Unprocessed Fuel to Manufacturing Industries
contains unrefined energy sources, specifically coal and natural gas, used to generate heat and power in manufacturing industries.
ID62222 Unprocessed Fuel to Nonmanufacturing Industries
includes coal and natural gas used to generate heat and power in nonmanufacturing industries.
Services for Intermediate Demand
Types of Commodities and Class of Buyer
Services include trade services; transportation and warehousing services; and services excluding trade, transportation, and warehousing. Trade services encompass both retailing and wholesaling services. The PPI views wholesalers and retailers as suppliers of distributive services (rather than as suppliers of goods), because little, if any, transformation of these goods takes place. This approach implies that the output of a wholesale or retail trade establishment is represented by the difference between its selling price of a good and the acquisition price for that same item. Gross margin prices, as collected by PPI, reflect the value added by the establishment for services such as marketing, storing, and displaying goods in convenient locations and making the goods easily available for customers to purchase. Transportation services include transportation of passengers, transportation of cargo, services related to transportation, and warehousing and storage of goods. Services less trade, transportation, and warehousing include all other types of services, such as health care services, professional services, financial services, entertainment services, etc.
Services for intermediate demand include trade services; transportation and warehousing services; and services less trade, transportation, and warehousing purchased by businesses as inputs to production.
Structure of Services for Intermediate Demand
| Index Code | Title |
|---|---|
| ID63 | Services for Intermediate Demand |
Services less Trade, Transportation, and Warehousing for Intermediate Demand | |
Services less Trade, Transportation, and Warehousing for Manufacturing Industries | |
Services less Trade, Transportation, and Warehousing for Nonmanufacturing Industries | |
Transportation and Warehousing Services for Intermediate Demand | |
Transportation of Passengers for Intermediate Demand | |
Transportation of Passengers for Manufacturing Industries | |
Transportation of Passengers for Nonmanufacturing Industries | |
Transportation and Warehousing of Goods for Intermediate Demand | |
Transportation of Goods for Manufacturing Industries | |
Transportation of Goods for Nonmanufacturing Industries | |
Trade Services for Intermediate Demand | |
Trade Services for Manufacturing Industries | |
Trade Services Nonmanufacturing Industries |
Definitions of Services for Intermediate Demand
ID6311 Services less Trade, Transportation, and Warehousing for Manufacturing Industries
includes services used by the manufacturing sector other than trade and transportation services. Examples include manufacturing services, such as contract work on textiles and metal coating and allied services, as well as other types of services, including engineering services, truck rental, and software publishing.
ID6312 Services less Trade, Transportation, and Warehousing for Nonmanufacturing Industries
includes services used by nonmanufacturing sectors other than trade and transportation services. Financial services, legal services, architectural services, consulting services, and telecommunication services are examples.
ID63211 Transportation of Passengers for Manufacturing Industries
composed of business travel services, including railroad and airline passenger services, purchased by manufacturing industries.
ID63212 Transportation of Passengers for Nonmanufacturing Industries
composed of business travel services, including railroad and airline passenger services, purchased by nonmanufacturing industries.
ID63221 Transportation of Goods for Manufacturing Industries
includes shipping, services related to shipping, and warehousing services for goods sold to manufacturing industries. Examples include pipeline transportation of petroleum products, long-distance motor carrying, and rail transportation of freight and mail.
ID63222 Transportation of Goods for Nonmanufacturing Industries
includes shipping, services related to shipping, and warehousing services for goods sold to nonmanufacturing industries. Examples include U.S. Postal Service, air transportation of freight, courier and messenger services, and marine cargo handling.
ID6331 Trade Services for Manufacturing Industries
contains retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Parts and supplies for machinery and equipment wholesaling; metals, mineral, and ores wholesaling; and paper and plastics wholesaling are examples of trade services for manufacturing industries.
ID6332 Trade Services for Nonmanufacturing Industries
contains retail and wholesale trade services for goods sold to nonmanufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include hardware and building materials and supplies retailing, chemicals and allied products wholesaling, and automotive parts retailing.
Construction for Intermediate Demand
Types of Commodities and Class of Buyer
Construction encompasses the creation and maintenance and repair of buildings or other engineering projects.
Construction for intermediate demand includes maintenance and repair construction purchased by businesses.
Structure of Construction for Intermediate Demand
| Index Code | Title |
|---|---|
| ID64 | Construction for Intermediate Demand |
Definitions of Construction for Intermediate Demand
ID64 Construction for Intermediate Demand
includes maintenance and repair construction purchased by businesses as inputs to construction. Note that all new construction is defined as capital investment and is included under final demand.
Final Demand
Types of Commodities and Class of Buyer
Final demand include all types of commodities (goods, services, and construction) consumed as personal consumption, by government, by businesses as capital investment, and as exports.
Structure of Final Demand
| Index Code | Title |
|---|---|
| FD4 | Final Demand |
Final Demand Goods | |
Final Demand Foods | |
Finished Consumer Foods | |
Finished Consumer Foods, Processed | |
Finished Consumer Foods, Crude | |
Government Purchased Foods | |
Foods for Export | |
Final Demand Energy | |
Finished Consumer Energy Goods | |
Government Purchased Energy | |
Energy for Export | |
Final Demand Goods less Foods and Energy | |
Finished Goods less Foods and Energy | |
Finished Consumer Goods less Foods and Energy | |
Nondurable Consumer Goods less Foods and Energy | |
Durable Consumer Goods | |
Private Capital Equipment | |
Private Capital Equipment for Manufacturing Industries | |
Private Capital Equipment for Nonmanufacturing Industries | |
Government Purchased Goods Excluding Foods and Energy | |
Government Purchased Goods Excluding Foods, Energy, and Capital Equipment | |
Government Purchased Capital Equipment | |
Goods for Export excluding Foods and Energy | |
Final Demand Services | |
Final Demand Services less Trade, Transportation, and Warehousing | |
Finished Services less Trade, Transportation, and Warehousing | |
Finished Consumer Services less Trade, Transportation, and Warehousing | |
Private Capital Investment Services less Trade, Transportation, and Warehousing | |
Government Purchased Services less Trade, Transportation, and Warehousing | |
Government Purchased Services less Trade, Transportation, and Warehousing excluding Capital Investment | |
Government Purchased Capital Investment Services less Trade, Transportation, and Warehousing | |
Services for Export less Trade, Transportation, and Warehousing | |
Final Demand Transportation and Warehousing Services | |
Transportation of Passengers for Final Demand | |
Transportation of Private Passengers | |
Transportation of Government Passengers | |
Transportation of Passengers for Export | |
Transportation and Warehousing of Goods for Final Demand | |
Transportation and Warehousing of Finished Goods | |
Transportation and Warehousing of Personal Consumption Goods | |
Transportation and Warehousing of Private Capital Equipment | |
Transportation and Warehousing of Government Purchased Goods | |
Transportation and Warehousing of Exports | |
Final Demand Trade Services | |
Trade of Finished Goods | |
Trade of Personal Consumption Goods | |
Trade of Private Capital Equipment | |
Trade of Government Purchased Goods | |
Trade of Government Purchased Goods Excluding Capital Equipment | |
Trade of Government Purchased Capital Equipment | |
Trade of Exports | |
Final Demand Construction | |
Construction for Private Capital Investment | |
Construction for Government |
Definitions of Final Demand
FD41112 Finished Consumer Foods, Processed
contains prepared food products that go directly to the consumer. Examples of processed finished foods include bread, packaged fluid milk and related products, candy and nuts, and carbonated drinks.
FD41112 Finished Consumer Foods, Crude
contains basic food products such as fresh fruits and vegetables that are used in an unprocessed state by the consumer.
FD4112 Government Purchased Foods
includes both processed and unprocessed foods purchased by government.
FD4113 Foods for Export
includes both processed and unprocessed foods sold as export. Examples include oilseeds, corn, and beef and veal.
FD4121 Finished Consumer Energy Goods
made up of energy goods, such as residential electric power, residential natural gas, gasoline, and home heating oil, purchased by consumers.
FD4122 Government Purchased Energy
includes energy goods purchased by the government. Examples of government purchased energy goods are jet fuel and diesel fuel.
FD4123 Energy for Export
composed of energy goods sold as exports. Jet fuel, gasoline, and diesel fuel are examples of exported energy goods.
FD413111 Nondurable Consumer Goods less Foods and Energy
contains nonfood and non-energy products ready for final consumption, with a life expectancy of less than 3 years. Examples include alcoholic beverages, women’s apparel, and cigarettes.
FD413112 Durable Consumer Goods
contains nonfood and non-energy products ready for final consumption, with a life expectancy of more than 3 years. Examples include furniture, passenger cars, and appliances.
FD413121 Private Capital Equipment for Manufacturing Industries
contains products that will undergo no further processing and are used to manufacture or transport other goods in the manufacturing sector. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I–O tables as Gross Private Fixed Investment. Examples of capital equipment for the manufacturing industry include industrial molds, motor trucks, tractors, and conveying equipment.
FD413122 Private Capital Equipment for Nonmanufacturing Industries
contains products that undergo no further processing and are used in the operation of nonmanufacturing industries. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I-O tables as Gross Private Fixed Investment. Examples of this category include telephone and telegraph equipment, office furniture, passenger cars bought by leasing companies, and civilian aircraft.
FD41321 Government Purchased Goods Excluding Foods, Energy, and Capital Equipment
includes government-purchased durable and nondurable goods other than foods, energy, and capital equipment.
FD41322 Government Purchased Capital Equipment
contains products that undergo no further processing and are used in the operation of the government. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I–O tables as Gross Government Fixed Investment. Examples include military aircraft, and search, detection, navigation, and guidance systems and equipment.
FD4133 Goods for Export Excluding Foods and Energy
composed of unprocessed and processed goods, other than foods and energy, sold as exports. Raw cotton, chemicals, and civilian aircraft are examples of goods for export excluding foods and energy.
FD42111 Finished Consumer Services less Trade, Transportation, and Warehousing
includes services other than trade and transportation services purchased by consumers, such as telecommunication services, medical care, insurance, and lodging.
FD42112 Private Capital Investment Services less Trade, Transportation, and Warehousing
composed of services other than trade, transportation, and warehousing services identified in the I–O tables as Gross Private Fixed Investment. Examples include engineering services, support activities for oil and gas operations, and system software publishing.
FD42121 Government Purchased Services less Trade, Transportation, and Warehousing Excluding Capital Investment
includes government-purchased services other than trade, transportation, warehousing, and capital investment services. Examples are legal services and telecommunications services.
FD42122 Government Purchased Capital Investment Services less Trade, Transportation, and Warehousing
composed of government-purchased services other that trade, transportation, and warehousing identified in the I–O tables as Gross Government Fixed Investment. Examples include software publishing and information technology support services.
FD4213 Services for Export less Trade, Transportation, and Warehousing
includes services sold by domestic producers to foreigners other that trade, transportation, and warehousing services. Engineering services and securities, brokerage, and investment advice are examples.
FD42211 Transportation of Private Passengers
includes consumer travel services, such as airline passenger services and rail transportation of passengers.
FD42212 Transportation of Government Passengers
includes government-purchased travel services.
FD42213 Transportation of Passengers for Export
composed of travel services sold as exports. An example is airline passenger services.
FD422211 Transportation and Warehousing of Personal Consumption Goods
includes shipping, services related to shipping, and warehousing services for goods eventually sold to consumers. Examples of transportation and warehousing of personal consumption goods are long distance motor carrying, deep sea water transportation of freight, and U.S. Postal Service.
FD422212 Transportation and Warehousing of Private Capital Equipment
includes shipping, services related to shipping, and warehousing services for goods sold as capital investment. This use category is identified in the I–O tables as Gross Private Fixed Investment.
FD42222 Transportation and Warehousing of Government Purchased Goods
includes shipping, services related to shipping, and warehousing services for goods sold to government.
FD42223 Transportation and Warehousing of Exports
includes shipping, services related to shipping, and warehousing services for goods sold as exports.
FD42311 Trade of Personal Consumption Goods
composed of retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of personal consumption trade services are apparel wholesaling, food and alcohol retailing, and automotive fuels and lubricant retailing.
FD42312 Trade of Private Capital Equipment
includes retail and wholesale trade services for goods sold as capital equipment. Machinery and equipment wholesaling, furnishings wholesaling, and automotive retailing represent examples of private capital equipment trade services.
FD42321 Trade of Government Purchased Goods Excluding Capital Equipment
composed of retail and wholesale trade services for goods sold to government other than capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include chemicals and allied products wholesaling and parts and supplies for machinery wholesaling.
FD42322 Trade of Government Purchased Capital Equipment
includes retail and wholesale trade services for goods sold to government as capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of trade of government purchased capital investment are machinery and equipment wholesaling and furnishing wholesaling.
FD4233 Trade of Exports
includes retail and wholesale trade services for goods sold as exports. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include machinery and equipment wholesaling and alcohol wholesaling.
FD431 Construction for Private Capital Investment
includes construction identified in the I-O tables as Gross Private Fixed Investment. All new construction is identified in the I–O tables as fixed investment. Examples include new office building construction, new industrial building construction, and new healthcare building construction.
FD432 Construction for Government
composed of all construction purchased by the government. New school building construction and maintenance and repair of nonresidential buildings are examples of construction for government.
Last Modified Date: August 26, 2015