PPI Updates Commodity Weight Allocations for the Final DemandIntermediate Demand Aggregation Structure

Notice

Effective with the release of January 2015 data on February 18, 2015, the Bureau of Labor Statistics (BLS) updated the weight allocations used to calculate its Final DemandIntermediate Demand (FDID) producer price indexes (PPI). This update more accurately reflects recent sales patterns. The PPI weights are based on shipment values from the 2007 economic census. However, BLS changed the proportion of these weights allocated to the various FDID categories. Data published in the 2007 InputOutput (IO) Accounts from the Bureau of Economic Analysis (BEA) provide the basis for the new allocations. This update affects all portions of the PPI FD-ID system: final demand indexes, intermediate demand by commodity type indexes, and intermediate demand by production flow indexes. This article first discusses commodity types among final demand and intermediate demand by commodity type together and then describes updates to the intermediate demand by production flow indexes. [1]

It is important to note that the allocation update will not change the PPI classification system, reference base, aggregation structure, or historical index data. The update does cause some significant, though not unexpected, shifts in the relative importance of component series in the FDID system. Appendix A of this report presents some of these more noteworthy shifts.


Final Demand and Intermediate Demand by Commodity Type Methodology

The primary data source used in the weight allocations of the PPI commodity FDID indexes by commodity type is the Use of commodities by industries, before redefinition table (hereafter known as the use table). [2] The use table shows—for each commodity group—the dollar value (in millions of dollars at producers prices) used by each industry and final user.

BLS analysts convert these dollar values of use to percentages and sum them to 100 percent for each IO commodity group. Analysts truncate individual values of less than 0.5 percent and normalize the residual values.

BLS analysts then determine the FDID categories that correspond to the uses of each commodity group in the IO table. Next, analysts analyze each detailed record on the IO table and assign it to one or more of the detailed FDID codes. These assignments combine information about the type of use indicated in the table and use informed judgment by BLS analysts relating to definitions of the FDID categories. The next section of this article includes these definitions. Only the lowest level FD-ID codes are used in the assignment process. Analysts do not make direct assignments to the higher level FDID codes (for example, FD4 Final Demand). These higher level indexes are calculated through aggregation of the lower level FDID indexes.

To make the FDID assignments, the analyst determines

  1. What is the product (transportation service, food, fuel, capital equipment, trade service, unprocessed material input, processed material input, etc.)?
  2. In what manner will this product be used by the consuming industry or user?

Analysts use the combined answer to these questions to determine the appropriate FDID code assignment. Often, the same product will fall into different FDID categories, depending on its use. For example, fresh fruit purchased by households is considered a Crude Finished Consumer Food (FD41113), while the same fruit purchased by a food company for canning is considered an Unprocessed Foodstuff and Feedstuff (ID621).

BLS analysts assign FDID weight allocations at the PPI 6-digit commodity group level, because this is the level used for building the lowest level FD-ID indexes. In the next step, analysts match the 6-digit PPI codes with IO codes in the BEA use table. They use a concordance between the PPI and the North American Standard Industrial Classification System (NAICS). BEA IO data are generally classified according to NAICS. BEA provides a concordance between the NAICS and the IO industry and commodity codes, which further enhances the match. Next, BLS analysts apply the percentage allocations by FDID for each PPI 6-digit code to the total value weight of the 6-digit commodity. The resultant products are used in their respective FDID aggregations for index calculation. Relative importances are then calculated for component 6-digit series in the PPI by FDID. [3]


Final Demand and Intermediate Demand by Commodity Type Structure and Definitions

Inherent in the Final DemandIntermediate Demand by Commodity Type categorization are the concepts of type of buyer and type of commodity. The two main buyer types are final-demand buyers and intermediate-demand buyers. Final-demand buyers include consumers, government, foreigners, and domestic industries that purchase the commodity as capital investment. Intermediate demand buyers consist of domestic industries that purchase the commodity as an input to production, excluding capital investment.

The four main type of commodities are unprocessed goods, processed goods, services, and construction. Unprocessed goods are goods that have undergone no fabrication. For PPI purposes, unprocessed goods can be subject to picking, sorting, washing, packing, or transporting. Processed goods include goods that have been subjected to a treatment or series of treatments that in some way alters the initial physical nature or function of the goods. Mixing goods or assembling components is considered processing because, though the good itself is not changed, its function or usefulness is altered. Services include trade services; transportation and warehousing services; and services excluding trade, transportation, and warehousing. Trade services encompass both retailing and wholesaling services. The PPI views wholesalers and retailers as suppliers of distributive services (rather than as suppliers of goods), because little, if any, transformation of these goods takes place. This approach implies that the output of a wholesale or retail trade establishment is represented by the difference between its selling price of a good and the acquisition price for that same item. Gross margin prices, as collected by PPI, reflect the value added by the establishment for services such as marketing, storing, and displaying goods in convenient locations and making the goods easily available for customers to purchase. Transportation services include transportation of passengers, transportation of cargo, services related to transportation, and warehousing and storage of goods. Services less trade, transportation, and warehousing include all other types of services, such as health care services, professional services, financial services, entertainment services, etc. Finally, construction encompasses the creation and maintenance and repair of buildings or other engineering projects.

The Final DemandIntermediate Demand (by commodity type) system consists of five major portions differentiated by the type of commodity and class of buyer. The five major FDID categories are processed goods for intermediate demand; unprocessed goods for intermediate demand; services for intermediate demand; construction for intermediate demand, and final demand.

Processed goods for intermediate demand include fabricated goods purchased by businesses as inputs to production, excluding capital investment. Unprocessed goods for intermediate demand are goods that have undergone no fabrication and are purchased by businesses as inputs to production. Services for intermediate demand include trade services; transportation and warehousing services; and services less trade, transportation, and warehousing purchased by businesses as inputs to production. Construction for intermediate demand includes maintenance and repair construction purchased by businesses. Final demand include all types of commodities (goods, services, and construction) consumed as personal consumption, by government, by businesses as capital investment, and as exports.

The full Final DemandIntermediate Demand by Commodity Type structure is provided below. Direct weight allocations are made to the FDID categories which are italicized. Definitions of the detailed indexes follow the listing of their respective structure.

Structure of Processed Goods for Intermediate Demand

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Index Code Title
ID61

Processed Goods for Intermediate Demand

ID611

Materials and Components for Manufacturing

ID6111

Materials for Manufacturing

ID61111

Materials for Food Manufacturing

ID61112

Materials for Nondurable Manufacturing

ID61113

Materials for Durable Manufacturing

ID6112

Components for Manufacturing

ID61121

Components for Nondurable Manufacturing

ID61122

Components for Durable Manufacturing

ID612

Materials and Components for Construction

ID6121

Materials for Construction

ID6122

Components for Construction

ID613

Processed Fuels and Lubricants for Intermediate Demand

ID6131

Processed Fuels and Lubricants for Manufacturing Industries

ID6132

Processed Fuels and Lubricants for Nonmanufacturing Industries

ID614

Containers for Intermediate Demand

ID615

Supplies for Intermediate Demand

ID6151

Supplies to Manufacturing Industries

ID6152

Supplies to Nonmanufacturing Industries

ID61521

Supplies to Nonmanufacturing Industries, Feeds

ID61522

Supplies to Nonmanufacturing Industries, Other than Feeds


Definitions of Processed Goods for Intermediate Demand

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ID61111 Materials for Food Manufacturing

contains partially processed food products that must undergo further preparation before reaching the final customer. Examples of materials for food manufacturing include milk products, canned or frozen fruits and vegetables, processed sugars, and certain chemicals.

ID61112 Materials for Nondurable Manufacturing

contains partially processed products that will undergo further preparation or usage in the manufacture of goods which have a life expectancy of less than 3 years. Examples of materials for nondurables manufacturing include cotton yarn used for shirts and woodpulp used to make paper.

ID61113 Materials for Durable Manufacturing

contains partially processed products that will undergo further preparation or usage in the manufacture of goods that have a life expectancy of more than 3 years. Examples of materials for durable manufacturing include textile materials, lumber, metals, and cement.

ID61121 Components for Nondurable Manufacturing

includes products, such as buttons and springs that are completely finished except for installation or assembly into a larger nondurable item. Nondurable goods are considered to have a life expectancy of less than 3 years.

ID61122 Components for Durable Manufacturing

includes products, such as pumps, valves, and fittings that are completely finished except for installation or assembly into a larger durable item. Durable goods are considered to have a life expectancy of 3 years or more.

ID6121 Materials for Construction

includes partially finished products that will undergo further preparation into a construction product. This usage is specifically defined in the I-O tables. Examples include lumber, concrete pipe, and architectural coatings.

ID6122 Components for Construction

includes completely finished products that will undergo installation into a construction product. This usage is specifically defined in the IO tables. Examples include metal doors and water heaters.

ID6131 Processed Fuels and Lubricants for Manufacturing Industries

includes fuel and related products used in manufacturing industries to generate heat and power and for lubrication. Examples include industrial electric power, industrial natural gas, gasoline, diesel fuel, and greases and oils.

ID6132 Processed Fuels and Lubricants for Nonmanufacturing Industries

includes fuel and related products used in nonmanufacturing industries to generate heat and power and for lubrication. Examples include commercial electric power, commercial natural gas, jet fuel, diesel fuel, and greases and oils.

ID614 Containers for Intermediate Demand

contains paper, wood, plastic, metal, and glass receptacles used to ease the transport of unwieldy items.

ID6151 Supplies to Manufacturing Industries

includes products consumed in the manufacturing industries during the course of production or distribution of other items but not physically incorporated in those items. These products are distinguished from capital equipment in that they are not amortized. Examples of supplies for manufacturing industries include plastic packaging, small cutting tools, and machinery.

ID61521 Supplies to Nonmanufacturing Industries, Feeds

includes feed products consumed by animals in the livestock industry. Examples of manufactured animal feeds include poultry feed, hog feed, vegetable cakes, and meal fee.

ID61522 Supplies to Nonmanufacturing Industries, Other than Feeds

includes products used in the nonmanufacturing sector other than the animal feed industry, which are consumed during the course of production or distribution of other items but not physically incorporated in those items. Examples include sedatives for hospitals, tires, motor vehicle parts for auto repair shops, and photographic supplies.


Structure of Unprocessed Goods for Intermediate Demand

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Index Code Title
ID62

Unprocessed Goods for Intermediate Demand

ID621

Unprocessed Foodstuffs and Feedstuffs

ID622

Unprocessed Nonfood Materials

ID6221

Unprocessed Nonfood Materials, Except Fuel

ID62211

Unprocessed Nonfood Materials, Except Fuel to Manufacturing Industries

ID62212

Unprocessed Nonfood Materials, Except Fuel to Nonmanufacturing Industries

ID6222

Unprocessed Fuel

ID62221

Unprocessed Fuel to Manufacturing Industries

ID62222

Unprocessed Fuel to Nonmanufacturing Industries


Definitions of Unprocessed Goods for Intermediate Demand

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ID621 Unprocessed Foodstuffs and Feedstuffs

contains basic agricultural products that will undergo some processing prior to becoming completed food products, as well agricultural products consumed directly by the agricultural sector. Examples include fresh fruit that will be canned or raw corn consumed by livestock as animal feed. Other examples would be cattle, hogs, or chickens intended for slaughter, or raw cane sugar that will be refined.

ID62211 Unprocessed Nonfood Materials, Except Fuel to Manufacturing Industries

contains minerals, agricultural products, and scrap materials that are intended to be used in a manufacturing process other than manufacturing of foods. Raw cotton that will be turned into yarn, or aluminum base scrap that will end up as refined aluminum, are examples of this category. Crude petroleum is contained in this grouping rather than in Crude Fuels, because it is not used as a fuel in its crude state; it can be used as a raw material in manufacturing (for example, synthetic rubber or pharmaceuticals). Also included in the category are agricultural inputs to manufactures of pet foods and alcoholic beverages.

ID62212 Unprocessed Nonfood Materials, Except Fuel to Nonmanufacturing Industries

includes products such as sand, gravel, and crushed stone primarily used in the construction industry.

ID62221 Unprocessed Fuel to Manufacturing Industries

contains unrefined energy sources, specifically coal and natural gas, used to generate heat and power in manufacturing industries.

ID62222 Unprocessed Fuel to Nonmanufacturing Industries

includes coal and natural gas used to generate heat and power in nonmanufacturing industries.


Structure of Services for Intermediate Demand

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Index Code Title
ID63

Services for Intermediate Demand

ID631

Services less Trade, Transportation, and Warehousing for Intermediate Demand

ID6311

Services less Trade, Transportation, and Warehousing for Manufacturing Industries

ID6312

Services less Trade, Transportation, and Warehousing for Nonmanufacturing Industries

ID632

Transportation and Warehousing Services for Intermediate Demand

ID6321

Transportation of Passengers for Intermediate Demand

ID63211

Transportation of Passengers for Manufacturing Industries

ID63212

Transportation of Passengers for Nonmanufacturing Industries

ID6322

Transportation and Warehousing of Goods for Intermediate Demand

ID63221

Transportation of Goods for Manufacturing Industries

ID63222

Transportation of Goods for Nonmanufacturing Industries

ID633

Trade Services for Intermediate Demand

ID6331

Trade Services for Manufacturing Industries

ID6332

Trade Services Nonmanufacturing Industries


Definitions of Services for Intermediate Demand

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ID6311 Services less Trade, Transportation, and Warehousing for Manufacturing Industries

includes services used by the manufacturing sector other than trade and transportation services. Examples include manufacturing services, such as contract work on textiles and metal coating and allied services, as well as other types of services, including engineering services, truck rental, and software publishing.

ID6312 Services less Trade, Transportation, and Warehousing for Nonmanufacturing Industries

includes services used by nonmanufacturing sectors other than trade and transportation services. Financial services, legal services, architectural services, consulting services, and telecommunication services are examples.

ID63211 Transportation of Passengers for Manufacturing Industries

ID63212 Transportation of Passengers for Nonmanufacturing Industries

composed of business travel services, including railroad and airline passenger services, purchased by nonmanufacturing industries.

ID63221 Transportation of Goods for Manufacturing Industries

includes shipping, services related to shipping, and warehousing services for goods sold to manufacturing industries. Examples include pipeline transportation of petroleum products, long-distance motor carrying, and rail transportation of freight and mail.

ID63222 Transportation of Goods for Nonmanufacturing Industries

includes shipping, services related to shipping, and warehousing services for goods sold to nonmanufacturing industries. Examples include U.S. Postal Service, air transportation of freight, courier and messenger services, and marine cargo handling.

ID6331 Trade Services for Manufacturing Industries

contains retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Parts and supplies for machinery and equipment wholesaling; metals, mineral, and ores wholesaling; and paper and plastics wholesaling are examples of trade services for manufacturing industries.

ID6332 Trade Services for Nonmanufacturing Industries

contains retail and wholesale trade services for goods sold to nonmanufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include hardware and building materials and supplies retailing, chemicals and allied products wholesaling, and automotive parts retailing.


Structure of Construction for Intermediate Demand

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Index Code Title
ID64

Construction for Intermediate Demand


Definitions of Construction for Intermediate Demand

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ID64 Construction for Intermediate Demand

includes maintenance and repair construction purchased by businesses as inputs to construction. Note that all new construction is defined as capital investment and is included under final demand.


Structure of Final Demand

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Index Code Title
FD4

Final Demand

FD41

Final Demand Goods

FD411

Final Demand Foods

FD4111

Finished Consumer Foods

FD41112

Finished Consumer Foods, Processed

FD41113

Finished Consumer Foods, Crude

FD4112

Government Purchased Foods

FD4113

Foods for Export

FD412

Final Demand Energy

FD4121

Finished Consumer Energy Goods

FD4122

Government Purchased Energy

FD4123

Energy for Export

FD413

Final Demand Goods less Foods and Energy

FD4131

Finished Goods less Foods and Energy

FD41311

Finished Consumer Goods less Foods and Energy

FD413111

Nondurable Consumer Goods less Foods and Energy

FD413112

Durable Consumer Goods

FD41312

Private Capital Equipment

FD413121

Private Capital Equipment for Manufacturing Industries

FD413122

Private Capital Equipment for Nonmanufacturing Industries

FD4132

Government Purchased Goods Excluding Foods and Energy

FD41321

Government Purchased Goods Excluding Foods, Energy, and Capital Equipment

FD41322

Government Purchased Capital Equipment

FD4133

Goods for Export excluding Foods and Energy

FD42

Final Demand Services

FD421

Final Demand Services less Trade, Transportation, and Warehousing

FD4211

Finished Services less Trade, Transportation, and Warehousing

FD42111

Finished Consumer Services less Trade, Transportation, and Warehousing

FD42112

Private Capital Investment Services less Trade, Transportation, and Warehousing

FD4212

Government Purchased Services less Trade, Transportation, and Warehousing

FD42121

Government Purchased Services less Trade, Transportation, and Warehousing excluding Capital Investment

FD42122

Government Purchased Capital Investment Services less Trade, Transportation, and Warehousing

FD4213

Services for Export less Trade, Transportation, and Warehousing

FD422

Final Demand Transportation and Warehousing Services

FD4221

Transportation of Passengers for Final Demand

FD42211

Transportation of Private Passengers

FD42212

Transportation of Government Passengers

FD42213

Transportation of Passengers for Export

FD4222

Transportation and Warehousing of Goods for Final Demand

FD42221

Transportation and Warehousing of Finished Goods

FD422211

Transportation and Warehousing of Personal Consumption Goods

FD422212

Transportation and Warehousing of Private Capital Equipment

FD42222

Transportation and Warehousing of Government Purchased Goods

FD42223

Transportation and Warehousing of Exports

FD423

Final Demand Trade Services

FD4231

Trade of Finished Goods

FD42311

Trade of Personal Consumption Goods

FD42312

Trade of Private Capital Equipment

FD4232

Trade of Government Purchased Goods

FD42321

Trade of Government Purchased Goods Excluding Capital Equipment

FD42322

Trade of Government Purchased Capital Equipment

FD4233

Trade of Exports

FD43

Final Demand Construction

FD431

Construction for Private Capital Investment

FD432

Construction for Government


Definitions of Final Demand

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FD41112 Finished Consumer Foods, Processed

contains prepared food products that go directly to the consumer. Examples of processed finished foods include bread, packaged fluid milk and related products, candy and nuts, and carbonated drinks.

FD41112 Finished Consumer Foods, Crude

contains basic food products such as fresh fruits and vegetables that are used in an unprocessed state by the consumer.

FD4112 Government Purchased Foods

includes both processed and unprocessed foods purchased by government.

FD4113 Foods for Export

includes both processed and unprocessed foods sold as export. Examples include oilseeds, corn, and beef and veal.

FD4121 Finished Consumer Energy Goods

made up of energy goods, such as residential electric power, residential natural gas, gasoline, and home heating oil, purchased by consumers.

FD4122 Government Purchased Energy

includes energy goods purchased by the government. Examples of government purchased energy goods are jet fuel and diesel fuel.

FD4123 Energy for Export

composed of energy goods sold as exports. Jet fuel, gasoline, and diesel fuel are examples of exported energy goods.

FD413111 Nondurable Consumer Goods less Foods and Energy

contains nonfood and non-energy products ready for final consumption, with a life expectancy of less than 3 years. Examples include alcoholic beverages, womens apparel, and cigarettes.

FD413112 Durable Consumer Goods

contains nonfood and non-energy products ready for final consumption, with a life expectancy of more than 3 years. Examples include furniture, passenger cars, and appliances.

FD413121 Private Capital Equipment for Manufacturing Industries

contains products that will undergo no further processing and are used to manufacture or transport other goods in the manufacturing sector. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the IO tables as Gross Private Fixed Investment. Examples of capital equipment for the manufacturing industry include industrial molds, motor trucks, tractors, and conveying equipment.

FD413122 Private Capital Equipment for Nonmanufacturing Industries

contains products that undergo no further processing and are used in the operation of nonmanufacturing industries. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I-O tables as Gross Private Fixed Investment. Examples of this category include telephone and telegraph equipment, office furniture, passenger cars bought by leasing companies, and civilian aircraft.

FD41321 Government Purchased Goods Excluding Foods, Energy, and Capital Equipment

includes government-purchased durable and nondurable goods other than foods, energy, and capital equipment.

FD41322 Government Purchased Capital Equipment

contains products that undergo no further processing and are used in the operation of the government. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the IO tables as Gross Government Fixed Investment. Examples include military aircraft, and search, detection, navigation, and guidance systems and equipment.

FD4133 Goods for Export Excluding Foods and Energy

composed of unprocessed and processed goods, other than foods and energy, sold as exports. Raw cotton, chemicals, and civilian aircraft are examples of goods for export excluding foods and energy.

FD42111 Finished Consumer Services less Trade, Transportation, and Warehousing

includes services other than trade and transportation services purchased by consumers, such as telecommunication services, medical care, insurance, and lodging.

FD42112 Private Capital Investment Services less Trade, Transportation, and Warehousing

composed of services other than trade, transportation, and warehousing services identified in the IO tables as Gross Private Fixed Investment. Examples include engineering services, support activities for oil and gas operations, and system software publishing.

FD42121 Government Purchased Services less Trade, Transportation, and Warehousing Excluding Capital Investment

includes government-purchased services other than trade, transportation, warehousing, and capital investment services. Examples are legal services and telecommunications services.

FD42122 Government Purchased Capital Investment Services less Trade, Transportation, and Warehousing

composed of government-purchased services other that trade, transportation, and warehousing identified in the IO tables as Gross Government Fixed Investment. Examples include software publishing and information technology support services.

FD4213 Services for Export less Trade, Transportation, and Warehousing

includes services sold by domestic producers to foreigners other that trade, transportation, and warehousing services. Engineering services and securities, brokerage, and investment advice are examples.

FD42211 Transportation of Private Passengers

includes consumer travel services, such as airline passenger services and rail transportation of passengers.

FD42212 Transportation of Government Passengers

includes government-purchased travel services.

FD42213 Transportation of Passengers for Export

composed of travel services sold as exports. An example is airline passenger services.

FD422211 Transportation and Warehousing of Personal Consumption Goods

includes shipping, services related to shipping, and warehousing services for goods eventually sold to consumers. Examples of transportation and warehousing of personal consumption goods are long distance motor carrying, deep sea water transportation of freight, and U.S. Postal Service.

FD422212 Transportation and Warehousing of Private Capital Equipment

includes shipping, services related to shipping, and warehousing services for goods sold as capital investment. This use category is identified in the IO tables as Gross Private Fixed Investment.

FD42222 Transportation and Warehousing of Government Purchased Goods

includes shipping, services related to shipping, and warehousing services for goods sold to government.

FD42223 Transportation and Warehousing of Exports

includes shipping, services related to shipping, and warehousing services for goods sold as exports.

FD42311 Trade of Personal Consumption Goods

composed of retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of personal consumption trade services are apparel wholesaling, food and alcohol retailing, and automotive fuels and lubricant retailing.

FD42312 Trade of Private Capital Equipment

includes retail and wholesale trade services for goods sold as capital equipment. Machinery and equipment wholesaling, furnishings wholesaling, and automotive retailing represent examples of private capital equipment trade services.

FD42321 Trade of Government Purchased Goods Excluding Capital Equipment

composed of retail and wholesale trade services for goods sold to government other than capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include chemicals and allied products wholesaling and parts and supplies for machinery wholesaling.

FD42322 Trade of Government Purchased Capital Equipment

includes retail and wholesale trade services for goods sold to government as capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of trade of government purchased capital investment are machinery and equipment wholesaling and furnishing wholesaling.

FD4233 Trade of Exports

includes retail and wholesale trade services for goods sold as exports. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include machinery and equipment wholesaling and alcohol wholesaling.

FD431 Construction for Private Capital Investment

includes construction identified in the I-O tables as Gross Private Fixed Investment. All new construction is identified in the IO tables as fixed investment. Examples include new office building construction, new industrial building construction, and new healthcare building construction.

FD432 Construction for Government

composed of all construction purchased by the government. New school building construction and maintenance and repair of nonresidential buildings are examples of construction for government.


Intermediate Demand by Production Flow Methodology

The intermediate demand by production flow portion of the FD-ID system reorganizes into four stages of production the same set of intermediate demand commodities included in the intermediate demand by commodity type portion of the system. The stages are developed such that commodities in one stage are used as inputs to produce commodities in the next stage. The stage-based treatment of intermediate demand allows data users to study price transmission relationships between the intermediate stages of production as well as the relationship to final demand.

To construct the intermediate demand by production flow indexes, a five-step procedure is followed. The procedure utilizes both BEA Make of commodities by industries and Use of commodities by industries, before redefinition tables. Both tables are included in the Benchmark Input-Output Accounts of the United States, 2007, published by BEA. As stated earlier, Use of commodities by industries, before redefinition shows—for each commodity group—the dollar value (in millions of dollars at producers prices) used by each industry and final user. The Make of commodities by industries table indicates the dollar value (in millions of dollars at producers prices) of each commodity made by each industry.

The first step in the procedure is to determine the total production of each industry in the economy. In general, industries are classified as primary producers of specific goods or services; however, industries may also be secondary producers of other goods or services. A firm classified in the automobile industry, for example, produces primarily automobiles, but the same firm may also produce and sell additional commodities, such as car parts, scrap metal, or car rentals. These additional commodities are classified as secondary production. The first step therefore requires determining both the primary production and secondary production of each industry in the economy. The 2007 BEA Make of commodities by industries table was used for this purpose.

The second step is to ascertain where the total output of each industry is consumed. This step requires determining, for each industry, the portion of the industry output consumed as final demand and the portion consumed as intermediate demand. For the intermediate-demand portion, determining which specific industries are consuming the industrys output also is required. BEA 2007 Use of commodities by industries, before redefinition data were employed to make this determination.

The third step in developing stages is to assign industries to stages of production. Within a stage-based system, transactions can be classified as forward flow, backflow, or internal flow. Forward flow occurs when an industry sells its output to an industry classified in a forward stage of production (to be used as an input) or to final demand. Internal flow occurs when an industry sells its output to be used as an input by another industry classified within the same stage of production. Backflow occurs when an industry sells its output to be used as an input by an industry classified in an earlier stage of production in the system. To successfully develop a forward-flowing system of price change, industries should be assigned to stages in a manner that minimizes backflow and internal flow while maximizing forward flow within the system. Towards this end, PPI assigned all industries included in the BEA I-O tables to stages in a manner that attempted to maximize net forward flow of the system. Net forward flow is defined as:

Net forward flow = (forward shipments of the industry stage + inputs received from previous stages of process) - (backward shipments of the industry stage + inputs received from forward stages of process)

The PPI program implements a two-step procedure to attempt to maximize net forward flow. In the first step, a set of rules is used to assign industries to stages and select the appropriate number of stages for the system. The system that the PPI program eventually chose is a four-stage system. The set of rules used to assign industries to the four stages is summarized as follows:

  • Assign industry to stage 4 if shipments sold to final demand ≥ 75 percent of industry production.
  • Assign industry to stage 3 if shipments sold to final demand and to stage 4 ≥ 75 percent of industry production and shipments sold to final demand < 75 percent of production.
  • Assign industry to stage 2 if shipments sold to final demand, to stage 4, and to stage 3 ≥ 60 percent of industry production; and shipments sold to final demand and to stage 4 < 75 percent of production; and shipments sold to final demand < 75 percent.
  • Assign industry to stage 1 if it does not meet the conditions of stage 4, 3, or 2.

Before selecting the number of stages and set of rules just described, the PPI program examined many different sets of rules and numbers of stages. It eventually chose the aforementioned system because it maximized net forward flow as compared with other sets of rules examined. [4]

After the assignment of industries to stages by use of the aforementioned rules, the second step in the procedure to maximize net forward flow was to examine the effects on net forward flow of moving individual industries to stages to which they were not originally assigned. In cases in which there were substantial gains to net forward flow, industries were left in the new stage.

The PPI production-flow-based system exhibits strong forward flow and little backflow: 83.7 percent of transactions in the system are forward flowing, 5.6 percent are back flowing, and 10.7 percent are internally flowing.

The fourth step in constructing the production-flow-based intermediate demand indexes is to determine the commodities to be included and weights to be used in the intermediate demand indexes. The four main indexes in the production flow system are stage 1 intermediate demand, stage 2 intermediate demand, stage 3 intermediate demand, and stage 4 intermediate demand. These indexes track prices for the inputs consumed by industries in each of the four stages of production. They do not track prices for the output produced by industries in each of the four stages of production. For example, the stage 4 intermediate demand index tracks price change for inputs consumed by industries included in the fourth stage of production. Recall that industries classified in the fourth stage of production mostly produce goods sold to final demand. The stage 4 intermediate demand index therefore measures price change in the inputs to production of industries that produce primarily final-demand commodities.

The BEA Use of commodities by industries, before redefinition table is used to determine the set of commodities consumed by industries in each of the four stages. The use table indicates the commodities consumed by industries in terms of BEA I-O codes. Since FD-ID indexes are constructed from PPI 6-digit commodity group level indexes, BEA I-O codes are matched to 6-digit PPI codes through use of a concordance between the PPI commodity codes and BEA I-O data. In the end, through the BEA use table and the PPI/I-O concordance, the set of 6-digit PPI commodities consumed by each stage is determined, and these are the commodities that compose each of the four stages of intermediate demand included in the production flow model. The final step in developing the production flow indexes is to convert the indexes from gross weighted indexes to net weighted indexes. Net weighting is accomplished by removing transactions in which an input is both produced and consumed within a given stage. Net weighting eliminates multiple counting of price change from the production flow price indexes. Net weights are develop using both the BEA Use of commodities by industries and Make of commodities by industries tables.

Appendix B, Table 1 presents the updated industry stage assignments based on 2007 I-O data. Appendix B, Table 2 presents shifts in industry stage assignments between 2002 and 2007 I-O data.

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Appendix A

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Table 1. Noteworthy Relative Importance Shifts in Final Demand and Intermediate Demand by Commodity Type
Title Index code Relative importance shift to final demand
Previous Updated Difference

Final Demand Goods

Jet fuel

057203 0.150 0.276 0.126

Unleaded regular gasoline

057104 1.314 1.435 0.121

Carbon steel scrap

101211 0.096 0.169 0.073

Other basic organics

061403 0.338 0.399 0.061

Search, detection, navigation & guidance systems and equipment

117604 0.373 0.430 0.057

Final Demand Services

Long-distance motor carrying

301202 1.838 2.181 0.343

Legal services

451101 1.919 1.576 -0.343

Nonresidential property sales and leases including land, brokerage fees and commissions

431201 0.016 0.330 0.314

Food wholesaling

578101 1.107 0.887 -0.220

Other commodities wholesaling

579101 1.711 1.510 -0.201

Securities brokerage, dealing, and investment advice

401101 1.137 0.962 0.175

Securities brokerage and dealing related services

401102 0.574 0.413 0.161

Guestroom or unit rental

531101 0.805 0.946 0.141

Parts and supplies for machinery and equipment wholesaling

571102 0.676 0.800 0.124

Advertising space sales in newspapers

361102 0.134 0.015 -0.119
Title Index code Relative importance shift to processed goods for intermediate demand
Previous Updated Difference

Processed Goods for Intermediate Demand

Other petroleum and coal products, including coke oven products, n.e.c.

058103 1.236 0.936 -0.300

Jet fuel

057203 1.020 0.750 -0.270

Primary basic organic chemicals

061401 2.739 2.974 0.235

Commercial electric power

054221 4.517 4.746 0.229

Unleaded regular gasoline

057104 2.126 1.929 -0.197

Search, detection, navigation & guidance systems and equipment

117604 0.273 0.090 -0.183

Other metal products

108905 1.712 1.858 0.146

Asphalt

058102 0.384 0.246 -0.138

Industrial electric power

054321 2.671 2.539 -0.132

Telephone and wireline data networking equipment

117601 0.062 0.184 0.122
Title Index code Relative importance shift to unprocessed goods for intermediate demand
Previous Updated Difference

Unprocessed Goods for Intermediate Demand

Carbon steel scrap

101211 5.387 4.362 -1.025

Crude petroleum (domestic production)

056101 15.881 16.494 0.613

Natural gas

053101 11.692 12.068 0.376

Slaughter steers and heifers

013101 11.161 11.492 0.331

Aluminum base scrap

102302 1.581 1.280 -0.301

Corn

012202 4.481 4.222 -0.259

Copper base scrap

102301 1.256 1.017 -0.239

Other nonferrous scrap, including lead, zinc & precious metals

102303 1.244 1.007 -0.237

Oilseeds

018301 3.412 3.623 0.211

Potatoes

011306 0.331 0.133 -0.198
Title Index code Relative importance shift to services for intermediate demand
Previous Updated Difference

Services for Intermediate Demand

Long-distance motor carrying

301202 2.906 1.946 -0.960

Legal services

451101 3.905 4.758 0.853

Food wholesaling

578101 1.073 1.623 0.550

Other commodities wholesaling

579101 1.371 1.849 0.478

Guestroom or unit rental

531101 0.825 0.409 -0.416

Parts and supplies for machinery and equipment wholesaling

571102 4.272 3.883 -0.389

Securities brokerage, dealing, and investment advice

401101 4.310 4.688 0.378

Engineering services

453201 3.139 2.821 -0.318

Advertising space sales in newspapers

361102 0.650 0.963 0.313

Local motor carrying

301201 0.807 0.542 -0.265

↩ Return to text


Appendix B

Intermediate Demand by Production Flow Stage Assignments

The following table presents the final industry stage assignments of the PPI production flow model on the basis of 2007 BEA IO data. Stage 1 includes 74 industries, stage 2 contains 93 industries, stage 3 includes 91 industries, and stage 4 contains 128 industries.

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Table 1. Final Stage Assignments
Stage 1
BEA
Code
BEA Title

1111A0

Oilseed farming

113000

Forestry and logging

115000

Support activities for agriculture and forestry

211000

Oil and gas extraction

212100

Coal mining

212230

Copper, nickel, lead, and zinc mining

2122A0

Iron, gold, silver, and other metal ore mining

230301

Nonresidential maintenance and repair

311119

Other animal food manufacturing

321100

Sawmills and wood preservation

322110

Pulp mills

322130

Paperboard mills

323110

Printing

323120

Support activities for printing

325110

Petrochemical manufacturing

325120

Industrial gas manufacturing

325130

Synthetic dye and pigment manufacturing

325180

Other basic inorganic chemical manufacturing

325211

Plastics material and resin manufacturing

325310

Fertilizer manufacturing

325320

Pesticide and other agricultural chemical manufacturing

325520

Adhesive manufacturing

325910

Printing ink manufacturing

326130

Laminated plastics plate, sheet (except packaging), and shape manufacturing

327992

Ground or treated mineral and earth manufacturing

331110

Iron and steel mills and ferroalloy manufacturing

331200

Steel product manufacturing from purchased steel

331314

Secondary smelting and alloying of aluminum

33131A

Alumina refining and primary aluminum production

33131B

Aluminum product manufacturing from purchased aluminum

331411

Primary smelting and refining of copper

331419

Primary smelting and refining of nonferrous metal (except copper and aluminum)

331420

Copper rolling, drawing, extruding and alloying

331490

Nonferrous metal (except copper and aluminum) rolling, drawing, extruding, and alloying

332710

Machine shops

332800

Coating, engraving, heat treating, and allied activities

334610

Manufacturing and reproducing magnetic and optical media

335991

Carbon and graphite product manufacturing

482000

Rail transportation

486000

Pipeline transportation

48A000

Scenic and sightseeing transportation and support activities for transportation

491000

Postal service

492000

Couriers and messengers

493000

Warehousing and storage

511110

Newspaper publishers

5111A0

Directory, mailing list, and other publishers

515100

Radio and television broadcasting

515200

Cable and other subscription programming

518200

Data processing, hosting, and related services

519130

Internet publishing and broadcasting and Web search portals

523A00

Securities and commodity contracts intermediation and brokerage

524200

Insurance agencies, brokerages, and related activities

532400

Commercial and industrial machinery and equipment rental and leasing

533000

Lessors of nonfinancial intangible assets

541100

Legal services

541200

Accounting, tax preparation, bookkeeping, and payroll services

541400

Specialized design services

54151A

Other computer related services, including facilities management

541610

Management consulting services

5416A0

Environmental and other technical consulting services

541800

Advertising, public relations, and related services

5419A0

Marketing research and all other miscellaneous professional, scientific, and technical services

550000

Management of companies and enterprises

561100

Office administrative services

561200

Facilities support services

561300

Employment services

561400

Business support services

561600

Investigation and security services

561700

Services to buildings and dwellings

561900

Other support services

711200

Spectator sports

711500

Independent artists, writers, and performers

811300

Commercial and industrial machinery and equipment repair and maintenance

813B00

Civic, social, professional, and similar organizations

Stage 2
BEA
Code
BEA Title

111900

Other crop farming

112120

Dairy cattle and milk production

1121A0

Beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming

112300

Poultry and egg production

112A00

Animal production, except cattle and poultry and eggs

212310

Stone mining and quarrying

2123A0

Other nonmetallic mineral mining and quarrying

221100

Electric power generation, transmission, and distribution

221200

Natural gas distribution

311221

Wet corn milling

311225

Fats and oils refining and blending

31122A

Soybean and other oilseed processing

313100

Fiber, yarn, and thread mills

313200

Fabric mills

313300

Textile and fabric finishing and fabric coating mills

314900

Other textile product mills

321200

Veneer, plywood, and engineered wood product manufacturing

321910

Millwork

3219A0

All other wood product manufacturing

322210

Paperboard container manufacturing

322220

Paper bag and coated and treated paper manufacturing

322299

All other converted paper product manufacturing

324110

Petroleum refineries

324190

Other petroleum and coal products manufacturing

3252A0

Synthetic rubber and artificial and synthetic fibers and filaments manufacturing

325510

Paint and coating manufacturing

325610

Soap and cleaning compound manufacturing

326110

Plastics packaging materials and unlaminated film and sheet manufacturing

326120

Plastics pipe, pipe fitting, and unlaminated profile shape manufacturing

326140

Polystyrene foam product manufacturing

326160

Plastics bottle manufacturing

326190

Other plastics product manufacturing

326220

Rubber and plastics hoses and belting manufacturing

326290

Other rubber product manufacturing

327100

Clay product and refractory manufacturing

327200

Glass and glass product manufacturing

327310

Cement manufacturing

327400

Lime and gypsum product manufacturing

327910

Abrasive product manufacturing

327993

Mineral wool manufacturing

327999

Miscellaneous nonmetallic mineral products

331510

Ferrous metal foundries

331520

Nonferrous metal foundries

332114

Custom roll forming

33211A

All other forging, stamping, and sintering

33211B

Crown and closure manufacturing and metal stamping

332200

Cutlery and handtool manufacturing

332310

Plate work and fabricated structural product manufacturing

332320

Ornamental and architectural metal products manufacturing

332430

Metal can, box, and other metal container (light gauge) manufacturing

332500

Hardware manufacturing

332600

Spring and wire product manufacturing

332720

Turned product and screw, nut, and bolt manufacturing

33291A

Valve and fittings other than plumbing

332991

Ball and roller bearing manufacturing

332996

Fabricated pipe and pipe fitting manufacturing

33299B

Other fabricated metal manufacturing

333313

Office machinery manufacturing

33341A

Air purification and ventilation equipment manufacturing

33351B

Cutting and machine tool accessory, rolling mill, and other metalworking machinery manufacturing

333612

Speed changer, industrial high-speed drive, and gear manufacturing

333613

Mechanical power transmission equipment manufacturing

33399B

Fluid power process machinery

334210

Telephone apparatus manufacturing

334413

Semiconductor and related device manufacturing

334418

Printed circuit assembly (electronic assembly) manufacturing

33441A

Other electronic component manufacturing

335312

Motor and generator manufacturing

335314

Relay and industrial control manufacturing

335911

Storage battery manufacturing

335920

Communication and energy wire and cable manufacturing

336320

Motor vehicle electrical and electronic equipment manufacturing

336992

Military armored vehicle, tank, and tank component manufacturing

420000

Wholesale trade

511120

Periodical publishers

512100

Motion picture and video industries

517110

Wired telecommunications carriers

517A00

Satellite, telecommunications resellers, and all other telecommunications

522A00

Nondepository credit intermediation and related activities

524100

Insurance carriers

52A000

Monetary authorities and depository credit intermediation

531000

Real estate

532100

Automotive equipment rental and leasing

541300

Architectural, engineering, and related services

541512

Computer systems design services

561500

Travel arrangement and reservation services

562000

Waste management and remediation services

711A00

Promoters of performing arts and sports and agents for public figures

811200

Electronic and precision equipment repair and maintenance

811400

Personal and household goods repair and maintenance

S00101

Federal electric utilities

S00102

Other federal government enterprises

S00202

State and local government electric utilities

Stage 3
BEA
Code
BEA Title

1111B0

Grain farming

111300

Fruit and tree nut farming

111400

Greenhouse, nursery, and floriculture production

114000

Fishing, hunting, and trapping

221300

Water, sewage, and other systems

230302

Residential maintenance and repair

311210

Flour milling and malt manufacturing

311300

Sugar and confectionery product manufacturing

311513

Cheese manufacturing

311514

Dry, condensed, and evaporated dairy product manufacturing

31151A

Fluid milk and butter manufacturing

311520

Ice cream and frozen dessert manufacturing

311615

Poultry processing

31161A

Animal (except poultry) slaughtering, rendering, and processing

311700

Seafood product preparation and packaging

311920

Coffee and tea manufacturing

311930

Flavoring syrup and concentrate manufacturing

311940

Seasoning and dressing manufacturing

312140

Distilleries

322120

Paper mills

322230

Stationery product manufacturing

322291

Sanitary paper product manufacturing

324121

Asphalt paving mixture and block manufacturing

324122

Asphalt shingle and coating materials manufacturing

325190

Other basic organic chemical manufacturing

325411

Medicinal and botanical manufacturing

325413

In-vitro diagnostic substance manufacturing

325414

Biological product (except diagnostic) manufacturing

3259A0

All other chemical product and preparation manufacturing

326150

Urethane and other foam product (except polystyrene) manufacturing

326210

Tire manufacturing

327320

Ready-mix concrete manufacturing

327330

Concrete pipe, brick, and block manufacturing

327390

Other concrete product manufacturing

327991

Cut stone and stone product manufacturing

332410

Power boiler and heat exchanger manufacturing

332420

Metal tank (heavy gauge) manufacturing

332913

Plumbing fixture fitting and trim manufacturing

333414

Heating equipment (except warm air furnaces) manufacturing

333415

Air conditioning, refrigeration, and warm air heating equipment manufacturing

333618

Other engine equipment manufacturing

333912

Air and gas compressor manufacturing

33391A

Pump and pumping equipment manufacturing

333920

Material handling equipment manufacturing

334112

Computer storage device manufacturing

33411A

Computer terminals and other computer peripheral equipment manufacturing

334290

Other communications equipment manufacturing

334512

Automatic environmental control manufacturing

334514

Totalizing fluid meter and counting device manufacturing

335110

Electric lamp bulb and part manufacturing

335120

Lighting fixture manufacturing

335228

Other major household appliance manufacturing

335311

Power, distribution, and specialty transformer manufacturing

335313

Switchgear and switchboard apparatus manufacturing

335930

Wiring device manufacturing

336211

Motor vehicle body manufacturing

336310

Motor vehicle gasoline engine and engine parts manufacturing

336350

Motor vehicle transmission and power train parts manufacturing

336360

Motor vehicle seating and interior trim manufacturing

336370

Motor vehicle metal stamping

336390

Other motor vehicle parts manufacturing

3363A0

Motor vehicle steering, suspension component (except spring), and brake systems manufacturing

336412

Aircraft engine and engine parts manufacturing

336413

Other aircraft parts and auxiliary equipment manufacturing

33641A

Propulsion units and parts for space vehicles and guided missiles

336500

Railroad rolling stock manufacturing

337110

Wood kitchen cabinet and countertop manufacturing

337215

Showcase, partition, shelving, and locker manufacturing

33721A

Office furniture and custom architectural woodwork and millwork manufacturing

339112

Surgical and medical instrument manufacturing

339113

Surgical appliance and supplies manufacturing

339114

Dental equipment and supplies manufacturing

339116

Dental laboratories

339940

Office supplies (except paper) manufacturing

339950

Sign manufacturing

339990

All other miscellaneous manufacturing

481000

Air transportation

483000

Water transportation

484000

Truck transportation

485000

Transit and ground passenger transportation

4A0000

Other retail

512200

Sound recording industries

517210

Wireless telecommunications carriers (except satellite)

5191A0

News syndicates, libraries, archives, and all other information services

523900

Other financial investment activities

532A00

Consumer goods and general rental centers

541920

Photographic services

621900

Other ambulatory health care services

812300

Dry-cleaning and laundry services

S00201

State and local government passenger transit

S00203

Other state and local government enterprises

Stage 4
BEA
Code
BEA Title

111200

Vegetable and melon farming

213111

Drilling oil and gas wells

21311A

Other support activities for mining

233210

Health care structures

233230

Manufacturing structures

233240

Power and communication structures

233262

Educational and vocational structures

233293

Highways and streets

2332A0

Commercial structures, including farm structures

2332B0

Other nonresidential structures

233411

Single-family residential structures

233412

Multifamily residential structures

2334A0

Other residential structures

311111

Dog and cat food manufacturing

311230

Breakfast cereal manufacturing

311410

Frozen food manufacturing

311420

Fruit and vegetable canning, pickling, and drying

311810

Bread and bakery product manufacturing

3118A0

Cookie, cracker, pasta, and tortilla manufacturing

311910

Snack food manufacturing

311990

All other food manufacturing

312110

Soft drink and ice manufacturing

312120

Breweries

312130

Wineries

312200

Tobacco product manufacturing

314110

Carpet and rug mills

314120

Curtain and linen mills

315000

Apparel manufacturing

316000

Leather and allied product manufacturing

325412

Pharmaceutical preparation manufacturing

325620

Toilet preparation manufacturing

33299A

Ammunition, arms, ordnance, and accessories manufacturing

333111

Farm machinery and equipment manufacturing

333112

Lawn and garden equipment manufacturing

333120

Construction machinery manufacturing

333130

Mining and oil and gas field machinery manufacturing

333220

Plastics and rubber industry machinery manufacturing

333295

Semiconductor machinery manufacturing

33329A

Other industrial machinery manufacturing

333314

Optical instrument and lens manufacturing

333315

Photographic and photocopying equipment manufacturing

33331A

Vending, commercial laundry, and other commercial and service industry machinery manufacturing

333511

Industrial mold manufacturing

333514

Special tool, die, jig, and fixture manufacturing

33351A

Metal cutting and forming machine tool manufacturing

333611

Turbine and turbine generator set units manufacturing

333991

Power-driven handtool manufacturing

333993

Packaging machinery manufacturing

333994

Industrial process furnace and oven manufacturing

33399A

Other general purpose machinery manufacturing

334111

Electronic computer manufacturing

334220

Broadcast and wireless communications equipment

334300

Audio and video equipment manufacturing

334510

Electromedical and electrotherapeutic apparatus manufacturing

334511

Search, detection, and navigation instruments manufacturing

334513

Industrial process variable instruments manufacturing

334515

Electricity and signal testing instruments manufacturing

334516

Analytical laboratory instrument manufacturing

334517

Irradiation apparatus manufacturing

33451A

Watch, clock, and other measuring and controlling device manufacturing

335210

Small electrical appliance manufacturing

335221

Household cooking appliance manufacturing

335222

Household refrigerator and home freezer manufacturing

335224

Household laundry equipment manufacturing

335912

Primary battery manufacturing

335999

All other miscellaneous electrical equipment and component manufacturing

336111

Automobile manufacturing

336112

Light truck and utility vehicle manufacturing

336120

Heavy duty truck manufacturing

336212

Truck trailer manufacturing

336213

Motor home manufacturing

336214

Travel trailer and camper manufacturing

336411

Aircraft manufacturing

336414

Guided missile and space vehicle manufacturing

336611

Ship building and repairing

336612

Boat building

336991

Motorcycle, bicycle, and parts manufacturing

336999

All other transportation equipment manufacturing

337121

Upholstered household furniture manufacturing

337122

Nonupholstered wood household furniture manufacturing

337127

Institutional furniture manufacturing

33712A

Other household nonupholstered furniture

337900

Other furniture-related product manufacturing

339115

Ophthalmic goods manufacturing

339910

Jewelry and silverware manufacturing

339920

Sporting and athletic goods manufacturing

339930

Doll, toy, and game manufacturing

441000

Motor vehicle and parts dealers

445000

Food and beverage stores

452000

General merchandise stores

511130

Book publishers

511200

Software publishers

525000

Funds, trusts, and other financial vehicles

541511

Custom computer programming services

541700

Scientific research and development services

541940

Veterinary services

611100

Elementary and secondary schools

611A00

Junior colleges, colleges, universities, and professional schools

611B00

Other educational services

621100

Offices of physicians

621200

Offices of dentists

621300

Offices of other health practitioners

621400

Outpatient care centers

621500

Medical and diagnostic laboratories

621600

Home health care services

622000

Hospitals

623A00

Nursing and community care facilities

623B00

Residential mental retardation, mental health, substance abuse, and other facilities

624100

Individual and family services

624400

Child daycare services

624A00

Community food, housing, and other relief services, including rehabilitation services

711100

Performing arts companies

712000

Museums, historical sites, zoos, and parks

713100

Amusement parks and arcades

713200

Gambling industries (except casino hotels)

713900

Other amusement and recreation industries

721000

Accommodation

722110

Full-service restaurants

722211

Limited-service restaurants

722A00

All other food and drinking places

811100

Automotive repair and maintenance

812100

Personal care services

812200

Death care services

812900

Other personal services

813100

Religious organizations

813A00

Grantmaking, giving, and social advocacy organizations

814000

Private households

S00800

Owner-occupied dwellings

↩ Return to text

To examine industry shifts resulting from the FDID allocation update, the following table compares previous industry stage assignments, based on 2002 IO data, with the current assignments, based on 2007 IO data. The 2007 IO data include 386 industries, and of these industries, 312 are comparable with industries included in the 2002 IO list. The remaining 74 noncomparable industries are included in the 2007 IO list but not in the 2002 IO data. Noncomparable industries are indicated by an NA in the 2002 assignment column. Of the 312 comparable industries, 231 (approximately 75 percent) are assigned to the same stage on the basis of 2007 IO data as they were in on the basis of 2002 data. Of the 81 industries that shifted stages, 71 shifted one stage, 9 shifted two stages, and one shifted three stages.

Skip Table »

Table 2. 2007 Versus 2002 Stage Assignments for Comparable Industries
BEA
Code
BEA Title 2007
Assignment
2002
Assignment

1111A0

Oilseed farming 1 1

1111B0

Grain farming 3 1

111200

Vegetable and melon farming 4 4

111300

Fruit and tree nut farming 3 NA

111400

Greenhouse, nursery, and floriculture production 3 4

111900

Other crop farming 2 NA

112120

Dairy cattle and milk production 2 2

1121A0

Beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming 2 2

112300

Poultry and egg production 2 2

112A00

Animal production, except cattle and poultry and eggs 2 2

113000

Forestry and logging 1 NA

114000

Fishing, hunting, and trapping 3 NA

115000

Support activities for agriculture and forestry 1 1

211000

Oil and gas extraction 1 1

212100

Coal mining 1 2

212230

Copper, nickel, lead, and zinc mining 1 1

2122A0

Iron, gold, silver, and other metal ore mining 1 1

212310

Stone mining and quarrying 2 2

2123A0

Other nonmetallic mineral mining and quarrying 2 NA

213111

Drilling oil and gas wells 4 4

21311A

Other support activities for mining 4 1

221100

Electric power generation, transmission, and distribution 2 2

221200

Natural gas distribution 2 2

221300

Water, sewage, and other systems 3 3

230301

Nonresidential maintenance and repair 1 1

230302

Residential maintenance and repair 3 3

233210

Healthcare structures 4 NA

233230

Manufacturing structures 4 NA

233240

Power and communication structures 4 NA

233262

Educational and vocational structures 4 NA

233293

Highways and streets 4 NA

2332A0

Commercial structures, including farm structures 4 NA

2332B0

Other nonresidential structures 4 NA

233411

Single-family residential structures 4 NA

233412

Multifamily residential structures 4 NA

2334A0

Other residential structures 4 NA

311111

Dog and cat food manufacturing 4 4

311119

Other animal food manufacturing 1 1

311210

Flour milling and malt manufacturing 3 3

311221

Wet corn milling 2 2

311225

Fats and oils refining and blending 2 2

31122A

Soybean and other oilseed processing 2 1

311230

Breakfast cereal manufacturing 4 4

311300

Sugar and confectionery product manufacturing 3 NA

311410

Frozen food manufacturing 4 4

311420

Fruit and vegetable canning, pickling, and drying 4 3

311513

Cheese manufacturing 3 3

311514

Dry, condensed, and evaporated dairy product manufacturing 3 3

31151A

Fluid milk and butter manufacturing 3 3

311520

Ice cream and frozen dessert manufacturing 3 3

311615

Poultry processing 3 3

31161A

Animal (except poultry) slaughtering, rendering, and processing 3 3

311700

Seafood product preparation and packaging 3 3

311810

Bread and bakery product manufacturing 4 4

3118A0

Cookie, cracker, pasta, and tortilla manufacturing 4 NA

311910

Snack food manufacturing 4 4

311920

Coffee and tea manufacturing 3 3

311930

Flavoring syrup and concentrate manufacturing 3 3

311940

Seasoning and dressing manufacturing 3 3

311990

All other food manufacturing 4 3

312110

Soft drink and ice manufacturing 4 4

312120

Breweries 4 4

312130

Wineries 4 4

312140

Distilleries 3 3

312200

Tobacco product manufacturing 4 NA

313100

Fiber, yarn, and thread mills 2 2

313200

Fabric mills 2 NA

313300

Textile and fabric finishing and fabric coating mills 2 NA

314110

Carpet and rug mills 4 4

314120

Curtain and linen mills 4 4

314900

Other textile product mills 2 NA

315000

Apparel manufacturing 4 NA

316000

Leather and allied product manufacturing 4 NA

321100

Sawmills and wood preservation 1 2

321200

Veneer, plywood, and engineered wood product manufacturing 2 NA

321910

Millwork 2 3

3219A0

All other wood product manufacturing 2 NA

322110

Pulp mills 1 1

322120

Paper mills 3 1

322130

Paperboard mills 1 1

322210

Paperboard container manufacturing 2 2

322220

Paper bag and coated and treated paper manufacturing 2 NA

322230

Stationery product manufacturing 3 4

322291

Sanitary paper product manufacturing 3 3

322299

All other converted paper product manufacturing 2 3

323110

Printing 1 2

323120

Support activities for printing 1 1

324110

Petroleum refineries 2 2

324121

Asphalt paving mixture and block manufacturing 3 3

324122

Asphalt shingle and coating materials manufacturing 3 3

324190

Other petroleum and coal products manufacturing 2 NA

325110

Petrochemical manufacturing 1 1

325120

Industrial gas manufacturing 1 1

325130

Synthetic dye and pigment manufacturing 1 1

325180

Other basic inorganic chemical manufacturing 1 NA

325190

Other basic organic chemical manufacturing 3 1

325211

Plastics material and resin manufacturing 1 2

3252A0

Synthetic rubber and artificial and synthetic fibers and filaments manufacturing 2 NA

325310

Fertilizer manufacturing 1 1

325320

Pesticide and other agricultural chemical manufacturing 1 1

325411

Medicinal and botanical manufacturing 3 3

325412

Pharmaceutical preparation manufacturing 4 4

325413

In-vitro diagnostic substance manufacturing 3 3

325414

Biological product (except diagnostic) manufacturing 3 3

325510

Paint and coating manufacturing 2 2

325520

Adhesive manufacturing 1 1

325610

Soap and cleaning compound manufacturing 2 3

325620

Toilet preparation manufacturing 4 4

325910

Printing ink manufacturing 1 1

3259A0

All other chemical product and preparation manufacturing 3 2

326110

Plastics packaging materials and unlaminated film and sheet manufacturing 2 2

326120

Plastics pipe, pipe fitting, and unlaminated profile shape manufacturing 2 NA

326130

Laminated plastics plate, sheet (except packaging), and shape manufacturing 1 2

326140

Polystyrene foam product manufacturing 2 3

326150

Urethane and other foam product (except polystyrene) manufacturing 3 3

326160

Plastics bottle manufacturing 2 3

326190

Other plastics product manufacturing 2 NA

326210

Tire manufacturing 3 3

326220

Rubber and plastics hoses and belting manufacturing 2 2

326290

Other rubber product manufacturing 2 2

327100

Clay product and refractory manufacturing 2 NA

327200

Glass and glass product manufacturing 2 NA

327310

Cement manufacturing 2 2

327320

Ready-mix concrete manufacturing 3 3

327330

Concrete pipe, brick, and block manufacturing 3 3

327390

Other concrete product manufacturing 3 3

327400

Lime and gypsum product manufacturing 2 NA

327910

Abrasive product manufacturing 2 2

327991

Cut stone and stone product manufacturing 3 3

327992

Ground or treated mineral and earth manufacturing 1 1

327993

Mineral wool manufacturing 2 3

327999

Miscellaneous nonmetallic mineral products 2 3

331110

Iron and steel mills and ferroalloy manufacturing 1 1

331200

Steel product manufacturing from purchased steel 1 1

331314

Secondary smelting and alloying of aluminum 1 1

33131A

Alumina refining and primary aluminum production 1 1

33131B

Aluminum product manufacturing from purchased aluminum 1 1

331411

Primary smelting and refining of copper 1 1

331419

Primary smelting and refining of nonferrous metal (except copper and aluminum) 1 2

331420

Copper rolling, drawing, extruding, and alloying 1 1

331490

Nonferrous metal (except copper and aluminum) rolling, drawing, extruding, and alloying 1 2

331510

Ferrous metal foundries 2 2

331520

Nonferrous metal foundries 2 2

332114

Custom roll forming 2 2

33211A

All other forging, stamping, and sintering 2 2

33211B

Crown and closure manufacturing and metal stamping 2 2

332200

Cutlery and handtool manufacturing 2 NA

332310

Plate work and fabricated structural product manufacturing 2 2

332320

Ornamental and architectural metal products manufacturing 2 3

332410

Power boiler and heat exchanger manufacturing 3 3

332420

Metal tank (heavy gauge) manufacturing 3 3

332430

Metal can, box, and other metal container (light gauge) manufacturing 2 2

332500

Hardware manufacturing 2 3

332600

Spring and wire product manufacturing 2 1

332710

Machine shops 1 2

332720

Turned product and screw, nut, and bolt manufacturing 2 2

332800

Coating, engraving, heat treating, and allied activities 1 2

332913

Plumbing fixture fitting and trim manufacturing 3 3

33291A

Valve and fittings other than plumbing 2 2

332991

Ball and roller bearing manufacturing 2 2

332996

Fabricated pipe and pipe fitting manufacturing 2 2

33299A

Ammunition, arms, ordnance, and accessories manufacturing 4 4

33299B

Other fabricated metal manufacturing 2 4

333111

Farm machinery and equipment manufacturing 4 4

333112

Lawn and garden equipment manufacturing 4 4

333120

Construction machinery manufacturing 4 4

333130

Mining and oil and gas field machinery manufacturing 4 4

333220

Plastics and rubber industry machinery manufacturing 4 4

333295

Semiconductor machinery manufacturing 4 4

33329A

Other industrial machinery manufacturing 4 4

333313

Office machinery manufacturing 2 NA

333314

Optical instrument and lens manufacturing 4 4

333315

Photographic and photocopying equipment manufacturing 4 4

33331A

Vending, commercial laundry, and other commercial and service industry machinery manufacturing 4 4

333414

Heating equipment (except warm air furnaces) manufacturing 3 3

333415

Air conditioning, refrigeration, and warm air heating equipment manufacturing 3 3

33341A

Air purification and ventilation equipment manufacturing 2 3

333511

Industrial mold manufacturing 4 4

333514

Special tool, die, jig, and fixture manufacturing 4 4

33351A

Metal cutting and forming machine tool manufacturing 4 4

33351B

Cutting and machine tool accessory, rolling mill, and other metalworking machinery manufacturing 2 4

333611

Turbine and turbine generator set units manufacturing 4 4

333612

Speed changer, industrial high-speed drive, and gear manufacturing 2 2

333613

Mechanical power transmission equipment manufacturing 2 2

333618

Other engine equipment manufacturing 3 3

333912

Air and gas compressor manufacturing 3 4

33391A

Pump and pumping equipment manufacturing 3 NA

333920

Material handling equipment manufacturing 3 3

333991

Power-driven handtool manufacturing 4 4

333993

Packaging machinery manufacturing 4 4

333994

Industrial process furnace and oven manufacturing 4 4

33399A

Other general purpose machinery manufacturing 4 4

33399B

Fluid power process machinery 2 2

334111

Electronic computer manufacturing 4 4

334112

Computer storage device manufacturing 3 3

33411A

Computer terminals and other computer peripheral equipment manufacturing 3 3

334210

Telephone apparatus manufacturing 2 4

334220

Broadcast and wireless communications equipment 4 4

334290

Other communications equipment manufacturing 3 2

334300

Audio and video equipment manufacturing 4 4

334413

Semiconductor and related device manufacturing 2 3

334418

Printed circuit assembly (electronic assembly) manufacturing 2 2

33441A

Other electronic component manufacturing 2 3

334510

Electromedical and electrotherapeutic apparatus manufacturing 4 4

334511

Search, detection, and navigation instruments manufacturing 4 4

334512

Automatic environmental control manufacturing 3 2

334513

Industrial process variable instruments manufacturing 4 4

334514

Totalizing fluid meter and counting device manufacturing 3 3

334515

Electricity and signal testing instruments manufacturing 4 4

334516

Analytical laboratory instrument manufacturing 4 4

334517

Irradiation apparatus manufacturing 4 4

33451A

Watch, clock, and other measuring and controlling device manufacturing 4 4

334610

Manufacturing and reproducing magnetic and optical media 1 NA

335110

Electric lamp bulb and part manufacturing 3 3

335120

Lighting fixture manufacturing 3 3

335210

Small electrical appliance manufacturing 4 4

335221

Household cooking appliance manufacturing 4 4

335222

Household refrigerator and home freezer manufacturing 4 4

335224

Household laundry equipment manufacturing 4 4

335228

Other major household appliance manufacturing 3 3

335311

Power, distribution, and specialty transformer manufacturing 3 3

335312

Motor and generator manufacturing 2 3

335313

Switchgear and switchboard apparatus manufacturing 3 3

335314

Relay and industrial control manufacturing 2 2

335911

Storage battery manufacturing 2 3

335912

Primary battery manufacturing 4 4

335920

Communication and energy wire and cable manufacturing 2 2

335930

Wiring device manufacturing 3 3

335991

Carbon and graphite product manufacturing 1 1

335999

All other miscellaneous electrical equipment and component manufacturing 4 4

336111

Automobile manufacturing 4 4

336112

Light truck and utility vehicle manufacturing 4 4

336120

Heavy duty truck manufacturing 4 4

336211

Motor vehicle body manufacturing 3 3

336212

Truck trailer manufacturing 4 4

336213

Motor home manufacturing 4 4

336214

Travel trailer and camper manufacturing 4 4

336310

Motor vehicle gasoline engine and engine parts manufacturing 3 NA

336320

Motor vehicle electrical and electronic equipment manufacturing 2 NA

336350

Motor vehicle transmission and power train parts manufacturing 3 NA

336360

Motor vehicle seating and interior trim manufacturing 3 NA

336370

Motor vehicle metal stamping 3 NA

336390

Other motor vehicle parts manufacturing 3 NA

3363A0

Motor vehicle steering, suspension component (except spring), and brake systems manufacturing 3 NA

336411

Aircraft manufacturing 4 4

336412

Aircraft engine and engine parts manufacturing 3 3

336413

Other aircraft parts and auxiliary equipment manufacturing 3 3

336414

Guided missile and space vehicle manufacturing 4 4

33641A

Propulsion units and parts for space vehicles and guided missiles 3 3

336500

Railroad rolling stock manufacturing 3 3

336611

Ship building and repairing 4 4

336612

Boat building 4 4

336991

Motorcycle, bicycle, and parts manufacturing 4 4

336992

Military armored vehicle, tank, and tank component manufacturing 2 4

336999

All other transportation equipment manufacturing 4 4

337110

Wood kitchen cabinet and countertop manufacturing 3 3

337121

Upholstered household furniture manufacturing 4 4

337122

Nonupholstered wood household furniture manufacturing 4 4

337127

Institutional furniture manufacturing 4 4

33712A

Other household nonupholstered furniture 4 4

337215

Showcase, partition, shelving, and locker manufacturing 3 3

33721A

Office furniture and custom architectural woodwork and millwork manufacturing 3 3

337900

Other furniture related product manufacturing 4 NA

339112

Surgical and medical instrument manufacturing 3 3

339113

Surgical appliance and supplies manufacturing 3 3

339114

Dental equipment and supplies manufacturing 3 3

339115

Ophthalmic goods manufacturing 4 4

339116

Dental laboratories 3 3

339910

Jewelry and silverware manufacturing 4 4

339920

Sporting and athletic goods manufacturing 4 4

339930

Doll, toy, and game manufacturing 4 4

339940

Office supplies (except paper) manufacturing 3 3

339950

Sign manufacturing 3 3

339990

All other miscellaneous manufacturing 3 NA

420000

Wholesale trade 2 3

441000

Motor vehicle and parts dealers 4 NA

445000

Food and beverage stores 4 NA

452000

General merchandise stores 4 NA

481000

Air transportation 3 4

482000

Rail transportation 1 2

483000

Water transportation 3 4

484000

Truck transportation 3 3

485000

Transit and ground passenger transportation 3 3

486000

Pipeline transportation 1 1

48A000

Scenic and sightseeing transportation and support activities for transportation 1 2

491000

Postal service 1 1

492000

Couriers and messengers 1 2

493000

Warehousing and storage 1 2

4A0000

Other retail 3 4

511110

Newspaper publishers 1 2

511120

Periodical publishers 2 2

511130

Book publishers 4 4

5111A0

Directory, mailing list, and other publishers 1 2

511200

Software publishers 4 3

512100

Motion picture and video industries 2 2

512200

Sound recording industries 3 3

515100

Radio and television broadcasting 1 2

515200

Cable and other subscription programming 1 1

517110

Wired telecommunications carriers 2 NA

517210

Wireless telecommunications carriers (except satellite) 3 NA

517A00

Satellite, telecommunications resellers, and all other telecommunications 2 NA

518200

Data processing, hosting, and related services 1 2

519130

Internet publishing and broadcasting and Web search portals 1 NA

5191A0

News syndicates, libraries, archives, and all other information services 3 NA

522A00

Nondepository credit intermediation and related activities 2 2

523900

Other financial investment activities 3 NA

523A00

Securities and commodity contracts intermediation and brokerage 1 NA

524100

Insurance carriers 2 3

524200

Insurance agencies, brokerages, and related activities 1 2

525000

Funds, trusts, and other financial vehicles 4 4

52A000

Monetary authorities and depository credit intermediation 2 1

531000

Real estate 2 1

532100

Automotive equipment rental and leasing 2 3

532400

Commercial and industrial machinery and equipment rental and leasing 1 2

532A00

Consumer goods and general rental centers 3 3

533000

Lessors of nonfinancial intangible assets 1 1

541100

Legal services 1 1

541200

Accounting, tax preparation, bookkeeping, and payroll services 1 1

541300

Architectural, engineering, and related services 2 3

541400

Specialized design services 1 2

541511

Custom computer programming services 4 4

541512

Computer systems design services 2 3

54151A

Other computer related services, including facilities management 1 2

541610

Management consulting services 1 1

5416A0

Environmental and other technical consulting services 1 2

541700

Scientific research and development services 4 3

541800

Advertising, public relations, and related services 1 1

541920

Photographic services 3 3

541940

Veterinary services 4 4

5419A0

Marketing research and all other miscellaneous professional, scientific, and technical services 1 1

550000

Management of companies and enterprises 1 2

561100

Office administrative services 1 2

561200

Facilities support services 1 3

561300

Employment services 1 1

561400

Business support services 1 2

561500

Travel arrangement and reservation services 2 2

561600

Investigation and security services 1 2

561700

Services to buildings and dwellings 1 2

561900

Other support services 1 2

562000

Waste management and remediation services 2 2

611100

Elementary and secondary schools 4 4

611A00

Junior colleges, colleges, universities, and professional schools 4 4

611B00

Other educational services 4 4

621100

Offices of physicians 4 NA

621200

Offices of dentists 4 NA

621300

Offices of other health practitioners 4 NA

621400

Outpatient care centers 4 NA

621500

Medical and diagnostic laboratories 4 NA

621600

Home health care services 4 4

621900

Other ambulatory health care services 3 NA

622000

Hospitals 4 4

623A00

Nursing and community care facilities 4 NA

623B00

Residential mental retardation, mental health, substance abuse, and other facilities 4 NA

624100

Individual and family services 4 NA

624400

Child daycare services 4 4

624A00

Community food, housing, and other relief services, including rehabilitation services 4 4

711100

Performing arts companies 4 3

711200

Spectator sports 1 1

711500

Independent artists, writers, and performers 1 1

711A00

Promoters of performing arts and sports and agents for public figures 2 2

712000

Museums, historical sites, zoos, and parks 4 4

713100

Amusement parks and arcades 4 NA

713200

Gambling industries (except casino hotels) 4 NA

713900

Other amusement and recreation industries 4 NA

721000

Accommodation 4 NA

722110

Full-service restaurants 4 NA

722211

Limited-service restaurants 4 NA

722A00

All other food and drinking places 4 NA

811100

Automotive repair and maintenance 4 NA

811200

Electronic and precision equipment repair and maintenance 2 3

811300

Commercial and industrial machinery and equipment repair and maintenance 1 1

811400

Personal and household goods repair and maintenance 2 3

812100

Personal care services 4 4

812200

Death care services 4 4

812300

Dry-cleaning and laundry services 3 3

812900

Other personal services 4 4

813100

Religious organizations 4 4

813A00

Grantmaking, giving, and social advocacy organizations 4 4

813B00

Civic, social, professional, and similar organizations 1 3

814000

Private households 4 4

S00101

Federal electric utilities 2 3

S00102

Other federal government enterprises 2 2

S00201

State and local government passenger transit 3 4

S00202

State and local government electric utilities 2 3

S00203

Other state and local government enterprises 3 4

S00800

Owner-occupied dwellings 4 4

↩ Return to text

Footnotes

[1] For a detailed description of the FDID system as well as other information pertaining to the system, please visit http://www.bls.gov/ppi/fdidaggregation.htm.

[2] This table is found in Benchmark InputOutput Accounts of the United States, 2007, published by BEA at http://bea.gov/newsreleases/industry/io/ionewsrelease.htm.

[3] In many cases, the same commodity is purchased by different buyer types, so commodities are often included in several FDID indexes. For example, regular gasoline is purchased for personal consumption, export, government use, and business use. The PPI program publishes only one commodity index for regular gasoline, reflecting sales to all types of buyers. It is this index that is used in all FDID aggregations, regardless of whether the gasoline is sold for personal consumption, as an export, to government, or to businesses, with differences accounted for in the applicable weights to each aggregate FD or ID index. In some cases, buyer type is an important price determining characteristic and results in commodity indexes being created on that basis. For example, within the PPI category for loan services, separate indexes for consumer loans and business loans were constructed. In this case, the commodity index for consumer loans would be included in the final-demand index, and the commodity index for business loans would fall under intermediate demand.

[4] For a detailed description of the methodology used to develop the PPI production flow model based on 2002 IO data, see http://www.bls.gov/ppi/expaggbeadata.pdf.


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Last Modified Date: February 23, 2015