Tuesday, April 14, 2009

Producer Price Index (PPI, Chart, and Text)


The Producer Price Index for Finished Goods decreased 1.2 percent in March, seasonally adjusted. This decline followed a 0.1-percent advance in February and a 0.8-percent increase in January. Excluding foods and energy, finished goods prices were unchanged following a 0.2-percent rise in February.PPI2Source: Bureau of Labor Statistics
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The Producer Price Index for Finished Goods decreased 1.2 percent in March, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This decline followed a 0.1-percent advance in February and a 0.8-percent increase in January. At the earlier stages of processing, prices received by producers of intermediate goods fell 1.5 percent after decreasing 0.9 percent a month earlier, and the crude goods index declined 0.3 percent following a 4.5-percent drop in February.

Among finished goods, the index for energy goods turned down 5.5 percent in March
after rising 1.3 percent in the preceding month. Prices for finished consumer goods less foods and energy inched up 0.1 percent following a 0.4-percent advance in February. The capital equipment index fell 0.2 percent in March after moving up 0.1 percent in the prior month. By contrast, partially offsetting the downturn in finished goods prices, the decline in the index for finished consumer foods slowed to 0.7 percent in March from 1.6 percent in the previous month.

Excluding foods and energy, finished goods prices were unchanged following a 0.2-percent rise in February.

During the first quarter of 2009, the finished goods index declined at a 0.9-percent
seasonally adjusted annual rate (SAAR), after falling at a 24.9-percent SAAR during the fourth quarter of 2008. This slower rate of decrease can be traced to prices for finished energy goods, which moved down at a 2.7-percent SAAR for the 3 months ended in March after dropping at a 76.7-percent SAAR for the 3 months ended in December. Conversely, the index for finished consumer foods decreased at a 10.1-percent SAAR for the 3 months ended in March after falling at a 4.8-percent SAAR for the 3 months ended in December. Prices for finished goods less foods and energy increased at a 2.6-percent SAAR during the first quarter of 2009 after rising at the same rate in the fourth quarter of 2008. At the earlier stages of processing, the intermediate
goods index moved down at an 11.7-percent SAAR during the first quarter of 2009 after falling at a 39.7-percent SAAR during the fourth quarter of 2008, and prices for crude goods decreased at a 27.2-percent SAAR for the 3 months ended in March after dropping at a 78.0-percent SAAR for the 3 months ended in December.

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.


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