Intermediate goods
The producer price index for Intermediate Materials, Supplies, and Components decreased 0.3 percent in December, after registering a 0.8-percent advance in November. This downturn is attributable to prices for intermediate energy goods, which fell in December following an increase a month earlier. On the other hand, the indexes for materials and components for construction and intermediate foods and feeds rose, after showing no change in November, while prices for durable and nondurable manufacturing materials moved up faster than they did in the prior month. The index for intermediate goods other than foods and energy went up 0.5 percent in December, following a 0.4-percent gain in November.Prices for intermediate energy goods fell 3.8 percent in December, compared with a 2.3-percent advance in November. The jet fuels index dropped 23.0 percent, after rising 4.4 percent in the preceding month. Prices for industrial natural gas, commercial natural gas, natural gas to electric utilities, liquefied petroleum gas, and residual fuels also turned down, following increases in November. The indexes for gasoline and diesel fuel fell more in December than they did in the prior month, while prices for commercial electric power and industrial electric power increased less in December than they did in November. From December 2003 to December 2004, prices for intermediate energy goods rose 14.7 percent, following a 10.9-percent gain in 2003.
The index for materials and components for construction moved up 0.4 percent in December, after showing no change in November. Prices for softwood lumber increased 0.7 percent, following an 8.0-percent drop in the prior month. The indexes for plywood, building paper and board, wiring devices, switchgear, fabricated ferrous wire products, heating equipment, and gypsum products also turned up, after falling in November. Prices for nonferrous wire and cable and cement rose more in December than they did in the prior month. By contrast, the index for fabricated structural metal products edged up 0.2 percent, following a 0.6-percent gain in November. Prices increases also slowed from November to December for concrete products, asphalt felts and coatings, and steel mill products. The index for plastic construction products fell, after rising in the preceding month. During 2004, prices for materials and components for construction jumped 10.0 percent, following a 3.0-percent increase in the previous year.
Prices for materials for durable manufacturing advanced 1.0 percent in December, following a 0.5-percent increase in November. The index for building paper and board rose 7.3 percent, after falling 8.3 percent in the prior month. Prices for plywood, primary nonferrous metals, cold rolled steel sheet and strip, and copper and brass mill shapes also turned up in December. The indexes for aluminum mill shapes; hot rolled steel bars, plates, and structural shapes; and cold finished bars went up more than they did in November. Alternatively, prices for titanium mill shapes declined 0.8 percent, following a 20.3-percent upsurge in November. The index for hardwood lumber decreased at a faster rate than it did in the previous month, and prices for prepared paint and semifinished steel mill products rose less in December than they did in the prior month. In 2004, the index for materials for durable manufacturing climbed 18.0 percent, following a 4.0-percent increase in 2003.
After showing no change in November, prices for intermediate foods and feeds advanced 0.8 percent in December. The index for beef and veal increased 3.9 percent in December, compared with a 1.6-percent decline a month earlier. Prices for prepared animal feeds; fluid milk products; and dry, condensed, and evaporated milk products also moved up, after falling in November. By contrast, flour prices moved down 1.9 percent in December, following a 3.3-percent gain in the prior month. The indexes for pork and confectionery materials also turned down, after climbing in November. Prices for natural, processed, and imitation cheese increased less in December than they did in November, while prices for shortening and cooking oils decreased more in December than they did in November. From December 2003 to December 2004, prices for intermediate foods and feeds fell 1.9 percent, following a 12.9-percent gain in 2003.
The index for materials for nondurable manufacturing increased 1.1 percent in December, following a 1.0-percent advance in November. In December, rising prices for plastic resins and materials, paper, processed or refined potassium salts, synthetic rubber, and paint materials outweighed falling prices for primary basic organic chemicals, finished fabrics, and inedible fats and oils. The index for materials for nondurable manufacturing climbed 13.7 percent in 2004, following a 4.9-percent gain in 2003.
