PPI final demand index up 1.6 percent for the 12 months ended January 2017

February 16, 2017

The Producer Price Index for final demand increased 1.6 percent (not seasonally adjusted) for the 12 months ended January 2017. The final demand goods index, which has a relative importance weight of 34 percent, increased 3.1 percent over the past year. The final demand services index, which has a weight of 64 percent, increased 0.8 percent. The final demand construction index, which accounts for the remaining 2 percent of the total, increased 1.3 percent over the same period.

12-month percentage change and relative importance for Producer Price Index for final demand groupings, January 2017
Grouping 12-month change, Jan 2016 to Jan 2017 Relative importance weight, December 2016

Final demand

1.6 100.000

Final demand goods

3.1 33.837

Final demand foods

-2.2 5.430

Final demand energy

14.0 5.488

Final demand goods less foods and energy

2.1 22.919

Final demand services

0.8 64.086

Final demand trade services

0.1 20.278

Final demand transportation and warehousing services

1.1 4.935

Final demand services less trade, transportation, and warehousing

1.3 38.873

Final demand construction

1.3 2.077

Construction for private capital investment

1.4 1.403

Construction for government

1.1 0.674

Within the final demand goods grouping, the index for foods decreased 2.2 percent over the 12 months ended January 2017, while the energy index increased 14.0 percent. The foods index and the energy index each have a relative importance weight of about 5 percent. Producer prices for all other goods, measured in the index for final demand goods less foods and energy, which has a weight of 23 percent, increased 2.1 percent for the year ended January 2017.

Within the final demand services grouping, the index for trade services, which has a weight of 20 percent, increased just 0.1 percent over the year. The transportation and warehousing services index (with a weight of 5 percent) increased 1.1 percent. The index for all other services, final demand services less trade, transportation, and warehousing, which has a weight of 38 percent, increased 1.3 percent.

These data are from the Producer Price Indexes program and are not seasonally adjusted. To learn more, see "Producer Price Indexes — January 2017" (HTML) (PDF). Producer price indexes measure prices that U.S. producers receive for goods, services, and construction. All producer prices are subject to revision once, 4 months after original publication. Also see Charts related to the latest "U.S. Producer Price Indexes" news release.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, PPI final demand index up 1.6 percent for the 12 months ended January 2017 on the Internet at https://www.bls.gov/opub/ted/2017/ppi-final-demand-index-up-1-point-6-percent-for-the-12-months-ended-january-2017.htm (visited December 18, 2017).

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