Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.7 percent in February, after registering a 0.4- percent gain in the previous month. This faster rate of increase was due to prices for intermediate energy goods, which turned up after falling in January. By contrast, the indexes for durable manufacturing materials, nondurable manufacturing materials, and construction materials increased less in February than they did in the prior month. Intermediate foods and feeds prices turned down, after rising a month earlier. Excluding food and energy prices, the index for intermediate goods went up 0.5 percent, following a 0.8-percent gain in January.Prices for intermediate energy goods advanced 1.5 percent in February, after declining 1.3 percent in January. Prices for jet fuel, gasoline, liquefied petroleum gas, and residual fuel turned up in February, following declines a month earlier. (Reporting errors were identified in the jet fuel index for November, December, and January, and will be corrected in accordance with normal revision procedures. The index level for February is believed to be correct, and should be comparable to figures prior to November.) The indexes for industrial natural gas, commercial natural gas, and natural gas to electric utilities decreased less in February than they did in January. Alternatively, prices for industrial electric power declined 1.5 percent in February, compared with a 1.9-percent gain in the prior month. The index for commercial electric power also turned down, after rising in January, while home heating oil prices increased less in February than they did in the preceding month.
Prices for materials for durable manufacturing moved up 0.9 percent in February, compared with a 1.8-percent gain in the preceding month. In February, rising prices for primary nonferrous metals, cold rolled steel sheet and strip, building paper and board, prepared paint, and cement outweighed price declines for cold finished steel bars, aluminum mill shapes, hardwood lumber, and adhesives and sealants.
The index for materials for nondurable manufacturing rose 0.2 percent in February, after climbing 0.6 percent in the prior month. Prices for plastic resins and materials went up 0.3 percent in February, after posting a 2.3-percent advance in January. The indexes for inedible fats and oils and paperboard turned down, following increases in January. Prices for gray fabrics and synthetic rubber advanced less in February than they did in January. By contrast, the index for liquid refinery gases rose 7.4 percent, after falling 5.1 percent in the previous month. Prices for intermediate basic organic chemicals, paper, and paint materials also turned up in February, following declines a month earlier. The rate of increase in the index for alkalies and chlorine quickened from January to February.
Prices for intermediate foods and feeds fell 0.6 percent in February, after advancing 0.9 percent in the prior month. The index for fluid milk products declined 4.5 percent, following a 4.2-percent gain in January. Prices for prepared animal feeds, dry milk products, and refined sugar and byproducts also turned down, after rising in the previous month. The indexes for pork and for shortening and cooking oils fell more in February than they did a month earlier. Conversely, beef and veal prices advanced 3.0 percent in February, following a 1.8-percent rise in the preceding month. The index for confectionery materials also increased more than it did in January. The indexes for natural, processed, and imitation cheese and liquid milk products fell less than they did in January. Processed young chicken prices turned up in February.
Prices for materials and components for construction moved up 0.9 percent in February, following a 1.0-percent advance in the prior month. Price increases were registered in February for softwood lumber, concrete products, plastic construction products, air conditioning and refrigeration equipment, and asphalt felts and coatings. These increases were partially offset by declining prices for steel mill products, hardwood lumber, millwork, and paving mixtures and blocks.
