PPI Weights Updated for 2012 Census Shipment Values

With the release of January 2018 Producer Price Index (PPI) data on February 15, 2018, the Bureau of Labor Statistics updated PPI value weights to more accurately reflect recent production and marketing patterns. The updated weights are based on shipment values from the year 2012. These value weights come from the Census of Manufactures, the Census of Mining, the Census of Services, and the Census of Agriculture. PPI weights were based on 2007 Census shipment values from January 2012 through December 2017.

All PPIs were affected by this weight update, including all the industry net output indexes, as well as indexes for traditional commodity groupings. In addition, weights were updated from the 2007 to the 2012 Census for all Final demand-Intermediate demand (FD-ID) indexes, durability of product indexes, special commodity-grouping indexes, and inputs to industry indexes. This weight revision did not result in changes to the arithmetic reference base for indexes, the dates when PPIs are set to 100.

It is important to note that the basic structures of the PPI commodity and FD-ID classification systems did not change as a result of the weight revision. However, PPIs classified according to the North American Industry Classification System (NAICS) were updated to reflect 2017 NAICS definitions established by the U.S. Census Bureau. The weight update also resulted in shifting relative importance values. These shifts impacted aggregate indexes in a manner commensurate with the relative gains and losses in value weights from 2007 to 2012.

In addition, the PPI sample updates normally occurring with the release of October and February data were combined and released in conjunction with this weight update. Commodity and FD-ID relative importance figures for December 2017 were released on February 13, 2018, two business days prior to the release of January 2018 PPI data. This information is available on the PPI website at www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

 

Last Modified Date: February 15, 2018