Producer Price Index for final demand declines in February 2014
March 18, 2014
The Producer Price Index for final demand fell 0.1 percent in February, seasonally adjusted. This decline followed advances of 0.2 percent in January and 0.1 percent in December.
|Month||Total final demand||Final demand, goods||Final demand, services|
In February, the 0.1-percent decrease in final demand prices can be traced to the index for final demand services, which fell 0.3 percent, the largest decrease since a 0.4-percent decline in May 2013. Over 80 percent of the February decrease in the index for final demand services can be attributed to margins for apparel, footwear, and accessories retailing, which fell 9.3 percent.
In contrast, prices for final demand goods advanced 0.4 percent, the same rate of advance as in each of the prior 2 months. Leading the broad-based increase in February, the index for final demand goods less foods and energy rose 0.2 percent. Prices for final demand foods and final demand energy also moved higher, 0.6 percent and 0.5 percent, respectively.
The index for processed goods for intermediate demand moved up 0.7 percent in February, the largest advance since a 1.0-percent increase in February 2013. The broad-based rise in February 2014 was led by the index for processed materials less foods and energy, which climbed 0.6 percent.
|Month||Processed goods for intermediate demand||Unprocessed goods for intermediate demand||Services for intermediate demand|
The index for unprocessed goods for intermediate demand jumped 5.7 percent in February, the largest advance since an 8.1-percent increase in January 2010. Leading the February rise, prices for unprocessed energy materials surged 14.7 percent. The index for unprocessed foodstuffs and feedstuffs moved up 0.5 percent. Conversely, prices for unprocessed nonfood materials less energy declined 0.7 percent.
The index for services for intermediate demand moved up 0.2 percent in February following no change in January. Prices for transportation and warehousing services for intermediate demand increased 1.0 percent.
These data are from the BLS Producer Price Indexes program. To learn more, see "Producer Price Indexes — February 2014" (HTML) (PDF), news release USDL‑14‑0392. All producer price indexes are routinely subject to revision once, 4 months after original publication, to reflect the availability of late reports and corrections by respondents. Final demand includes goods, services, and construction which are sold for personal consumption, capital investment, government purchases, and export. Intermediate demand includes goods, services, and maintenance and repair construction sold to businesses, excluding capital investment.
Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Producer Price Index for final demand declines in February 2014 on the Internet at http://www.bls.gov/opub/ted/2014/ted_20140318.htm (visited December 22, 2014).