Crude goods
The Producer Price Index for Crude Materials for Further Processing declined 2.0 percent in January, following a 3.0-percent fall in December. Prices for crude energy materials decreased less in January than they did in December. By contrast, the index for basic industrial materials fell at a faster pace in January than it did in the prior month, and the crude foodstuffs and feedstuffs index posted a smaller increase in January than it did in December.The crude energy materials index decreased 4.5 percent in January, after declining 7.3 percent in December. Natural gas prices dropped 12.3 percent in January, while coal prices inched up 0.2 percent. By contrast, crude petroleum prices climbed 10.4 percent in January.
Prices for basic industrial materials decreased 2.5 percent in January, after falling 1.3 percent in December. In January, declining prices for iron and steel scrap, gold ores, leaf tobacco, aluminum base scrap, and copper ores outweighed rising prices for construction sand, gravel, and crushed stone; iron ore; raw cotton; and softwood logs, bolts, and timber.
The crude foodstuffs and feedstuffs index gained 1.9 percent in January, following a 2.6-percent advance in December. A 6.5-percent increase in prices for slaughter cattle led the increase in the crude foodstuffs and feedstuffs index in January. Rising prices for slaughter broilers and fryers, corn, wheat, and raw cane sugar and byproducts also were registered in January. By contrast, the indexes for fluid milk, slaughter hogs, fresh and dry vegetables, fresh fruits and melons, and soybeans declined in January.
Net output price indexes for mining, manufacturing, and services industries
Mining.
The Producer Price Index for the Net Output of Total Mining Industries declined 3.6 percent in January, following a 5.8-percent drop in the prior month. (Net output price indexes are not seasonally adjusted.) Prices received by the natural gas liquid extraction industry fell 7.4 percent in January, compared with a 12.7-percent decline in December. The crude petroleum and natural gas extraction industry index also decreased less in January, while prices received by the industries for bituminous coal underground mining and for crushed and broken limestone mining and quarrying rose more than they did in the preceding month. Alternatively, the industry index for copper ore and nickel ore mining slipped 0.6 percent, compared with a 15.6-percent increase in December. Prices received by the industries for gold ore mining, bituminous coal and lignite surface mining, and for potash, soda, and borate mineral mining also turned down, after rising a month earlier. The index for the oil and gas well drilling industry increased less than it did in December. In January, the Producer Price Index for the Net Output of Total Mining Industries was 163.8 (December 1984=100), 13.3 percent above its year-ago level.
Manufacturing.
The Producer Price Index for the Net Output of Total Manufacturing Industries increased 1.0 percent in January, following a 0.9-percent decrease in the previous month. Prices received by manufacturers of petroleum and coal products turned up 3.4 percent, after falling 13.0 percent in December. The industry group indexes for transportation equipment, beverages and tobacco, chemicals, machinery, fabricated metal products, nonmetallic mineral products, and primary metals rose more in January than they did in the preceding month. By contrast, prices received by food manufacturers increased 0.6 percent in January, following a 0.8-percent gain in December. The industry group indexes for wood product manufacturing and paper manufacturing also rose less than they did in the prior month. In January, the Producer Price Index for the Net Output of Total Manufacturing Industries was 146.2 (December 1984=100), 5.3 percent above its year-ago level.
Services.
Among services industries in January, prices received by commercial bankers advanced 4.9 percent, after edging down 0.2 percent in the preceding month. The industry indexes for offices of lawyers, hotels (except casino hotels) and motels, investment banking and securities dealing, and saving institutions also turned up, following declines in December. Prices for direct health and medical insurance carriers, offices of real estate agents and brokers, and general medical and surgical hospitals rose more quickly than they did in the previous month. By contrast, the industry index for scheduled freight air transportation declined 3.2 percent in January, following a 3.4-percent increase a month earlier. Prices received by the industries for passenger car rental, radio stations, cable networks, and residential property managers also turned down, after moving up in December.---
If you would like to contact the Economics Guide you can do so by using the Feedback Form.
