The 2020 Mid-Year Economic Update_long

Producer Prices Rise 0.5% in June

month.


 


By contrast, prices for plastic resins and materials advanced 1.3 percent following a 1.2% drop in the preceding month.  The index for intermediate basic organic chemicals also turned up in June.  Prices for primary basic organic chemicals and paper rose more in June than they had in May.  From December 2005 to June 2006, prices for materials for nondurable manufacturing climbed at an 8.2% SAAR after rising at a 14.8% SAAR from June to December 2005.


    


Crude goods


The Producer Price Index for Crude Materials for Further Processing declined 1.7 percent in June following a 2.0% increase in May. Prices for crude energy materials fell after rising in the previous month. The index for basic industrial materials increased less than it had in May. By contrast, prices for crude foodstuffs and feedstuffs turned up following declines in the prior month.


 


The index for crude energy materials fell 6.8 percent in June after increasing 2.5 percent in the preceding month.  Leading this downturn, prices for natural gas dropped 10.8 percent following a 2.3% gain in May.  The index for crude petroleum decreased 3.7 percent after rising 3.8 percent in the prior month.  Alternatively, coal prices were unchanged following a 2.2% decline in May.  (See table 2.)  During the first half of 2006, the crude energy materials index decreased at a 36.9% SAAR after rising at an 83.8% SAAR in the previous 6-month period.


 


Prices for crude nonfood materials less energy increased 1.7 percent in June after a 6.2% rise in the prior month.  The iron and steel scrap index advanced 6.2 percent following a 6.8% gain in May. Prices for gold ores, both copper and aluminum base scrap, and wastepaper fell after increasing in the previous month.  By contrast, the raw cotton index declined 0.6 percent in June following a 13.0% decrease in the preceding month.  Prices for miscellaneous metal ores turned up, while the index for hides and skins rose more than it had in May.  From December 2005 to June 2006, the index for basic industrial materials increased at a 37.1% SAAR after rising at a 30.4% SAAR in the second half of 2005.

 


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For more economic data, updated monthly, see MDM’s Databank.

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Producer Prices Rise 0.3% in May

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advance in the prior month.  Prices for materials for durable manufacturing, intermediate energy goods, materials and components for construction, and materials for nondurable manufacturing also increased less than they had in May.  By contrast, the index for intermediate foods and feeds turned up after falling in the previous month.  Prices for intermediate goods other than foods and energy moved up 0.8 percent in June compared with a 1.1% jump in May.


    


The index for materials for durable manufacturing climbed 1.1 percent in June after rising 4.4 percent in May.  Hot rolled steel sheet and strip prices increased 5.6 percent in June after gaining 7.9 percent a month earlier.  The index for aluminum mill shapes also advanced less than it had in May.  Prices for primary nonferrous metals, copper and brass mill shapes, softwood lumber, and for building paper and board turned down after rising in the previous month.  By contrast, the index for cold rolled steel sheet and strip increased 8.4 percent in June compared with a 1.2% gain in the preceding month.  Prices for hot rolled steel bars, plates, and structural shapes also advanced more than they had in May.  The index for thermoplastic resins turned up after declining in the prior month.  From December 2005 to June 2006, the index for materials for durable manufacturing jumped at a 22.0% SAAR after moving up at an 11.2% SAAR in the previous 6-month period.


    


The intermediate energy goods index advanced 0.4 percent in June after increasing 1.0 percent in the preceding month.  The increase in the index for residual fuel slowed to 7.3 percent from 10.3 percent in May.  Prices for both industrial and commercial natural gas fell more than in the preceding month.  The index for natural gas to electric utilities turned down in June after increasing a month earlier.  By contrast, prices for industrial electric power turned up 0.9 percent after falling 0.8 percent in May.  The index for commercial electric power also rose after declining in the previous month.  Prices for gasoline, jet fuel, and home heating oil advanced more than in the prior month.  The index for intermediate energy goods moved up at a 4.4% SAAR during the first half of 2006 after climbing at a 36.0% SAAR in the second half of 2005. 


    


Subsequent to a 1.2% gain in May, prices for materials and components for construction increased 0.3 percent in June.  The index for paving mixtures and blocks rose 2.6 percent after advancing 7.1 percent in the previous month.  Prices for nonferrous wire and cable, softwood lumber, gypsum products, and for building paper and board turned down in June following increases in the prior month.  The treated wood index fell after showing no change in May.  Alternatively, prices for fabricated structural metal products went up 1.1 percent in June, after rising 0.6 percent in the preceding month.  The index for steel mill products also advanced more in June, and prices for wiring devices turned up from declines in May.  The index for air conditioning and refrigeration equipment moved up after showing no change in the previous month.  During the first half of 2006, the index for materials and components for construction advanced at a 7.7% SAAR after increasing at the same rate in the second half of 2005.


    


Prices for materials for nondurable manufacturing moved up 1.0 percent in June after increasing 1.4 percent a month earlier.  The increase in the index for paperboard slowed to 1.0 percent from 5.3 percent in May.  The indexes for inedible fats and oils, phosphates, aluminum compounds, and finished fabrics turned down in June after moving up in the prior
The Producer Price Index for Finished Goods increased 0.5 percent in June, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported.  This rise followed advances of 0.2 percent in May and 0.9 percent in April.  At the earlier stages of processing, prices received by producers of intermediate goods climbed 0.7 percent in June after increasing 1.1 percent in the prior month, and the crude goods index fell 1.7 percent following a 2.0% gain in May.


 


Among prices for finished goods, the index for consumer foods moved up 1.4 percent in June after decreasing 0.5 percent in May.  Prices for energy goods rose 0.7 percent following a 0.4-advance in the previous month.  By contrast, the index for finished goods other than foods and energy increased 0.2 percent in June compared with a 0.3% rise in May.


 


During the first 6 months of 2006, the finished goods index rose at a 2.1% seasonally adjusted annual rate (SAAR) after moving up at a 7.5% SAAR during the latter half of 2005.  Leading this slower rate of advance, prices for finished energy goods climbed at a 4.1% SAAR from December 2005 to June 2006 after advancing at a 36.3% SAAR for the 6 months ended December 2005.  The index for finished consumer foods declined at a 2.3% SAAR during the first half of 2006 after increasing at a 3.6% SAAR during the second half of 2005.  By contrast, prices for finished goods other than foods and energy advanced at a 3.1% SAAR for the 6 months ended in June after rising at a 0.6% SAAR during the prior 6 month period.  At the earlier stages of processing, the intermediate goods index increased at a 6.6% SAAR from December 2005 to June 2006 after moving up at a 12.1% SAAR during the latter half of 2005, and prices for crude goods fell at a 19.1% SAAR for the 6 months ended in June after surging at a 46.1% SAAR for the 6 months ended December 2005.


 


Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.3 percent in June to 161.7 (1982 = 100).  From June 2005 to June 2006, prices for finished goods increased 4.9 percent.  Over the same period, the index for finished energy goods climbed 19.1 percent, prices for finished goods other than foods and energy advanced 1.9 percent, and the index for finished consumer foods rose 0.6 percent.  For the 12 months ended June 2006, prices received by intermediate goods producers moved up 9.3 percent, and the crude goods index increased 8.6 percent.


 


Finished goods


Prices for finished energy goods rose 0.7 percent in June after moving up 0.4 percent in May.  Leading this acceleration, the gasoline index climbed 6.3 percent following a 2.2% increase in the preceding month.  Prices for home heating oil and diesel fuel also rose more in June than they had a month earlier.  The index for lubricating and similar oils, which was unchanged in May, advanced in June.  By contrast, prices for residential electric power fell 2.8 percent in June after inching up 0.1 percent in the prior month.  The index for residential natural gas declined at a faster rate than it had in May, while prices for liquefied petroleum gas and kerosene rose less than in the previous month.


 


The index for finished goods other than foods and energy increased 0.2 percent in June following a 0.3% advance in May.  In June, rising prices for passenger cars, light motor trucks, civilian aircraft, pharmaceutical preparations, alcoholic beverages, and mobile homes outweighed falling prices for platinum and karat gold jewelry; home electronic equipment; electronic computers; and women’s, girls’, and infants’ apparel.


 


Intermediate goods


The Producer Price Index for Intermediate Materials, Supplies, and Components rose 0.7 percent in June following a 1.1%

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