ࡱ> =< '@\pBureau Of The Census Ba==yX/#8X@"1& Courier New1Arial1Arial1Arial1& Courier New"$"#,##0_);\("$"#,##0\)!"$"#,##0_);[Red]\("$"#,##0\)""$"#,##0.00_);\("$"#,##0.00\)'""$"#,##0.00_);[Red]\("$"#,##0.00\)7*2_("$"* #,##0_);_("$"* \(#,##0\);_("$"* "-"_);_(@_).))_(* #,##0_);_(* \(#,##0\);_(* "-"_);_(@_)?,:_("$"* #,##0.00_);_("$"* \(#,##0.00\);_("$"* "-"??_);_(@_)6+1_(* #,##0.00_);_(* \(#,##0.00\);_(* "-"??_);_(@_)"$"#,##0;\-"$"#,##0"$"#,##0;[Red]\-"$"#,##0"$"#,##0.00;\-"$"#,##0.00#"$"#,##0.00;[Red]\-"$"#,##0.0050_-"$"* #,##0_-;\-"$"* #,##0_-;_-"$"* "-"_-;_-@_-,'_-* #,##0_-;\-* #,##0_-;_-* "-"_-;_-@_-=8_-"$"* #,##0.00_-;\-"$"* #,##0.00_-;_-"$"* "-"??_-;_-@_-4/_-* #,##0.00_-;\-* #,##0.00_-;_-* "-"??_-;_-@_-0.0 #,##0.0                     $ "     #    8 $< $8  <         ` &Main ><Terms" INTERNET=hh  SOURCE;#% TITLE=`ig Product PlywoodOther wood products(NA) NA Not available.)Source: U.S. Bureau of Labor Statistics, Producer Price Indexes, monthly.7Producer price indexes (PPI) measure average changes in;prices received by domestic producers of commodities in all5stages of processing. Most of the information used in:calculating the indexes is obtained through the systematic:sampling of nearly every industry in the manufacturing and<mining sectors of the economy. The PPI program also includes:some information from other sectors--agriculture, fishing,4forestry, services, and gas and electricity. Because7producer price indexes are designed to measure only the4change in prices received for the output of domestic:industries, imports are not included. The sample currently:contains about 3,200 commodities and 80,000 quotations permonth.5There are three primary systems of indexes within the;PPI program: (1) Stage of processing indexes; (2) commodity9indexes; and (3) indexes for the net output of industries5and their products. The stage-of-processing structure9(tables 1 and 2) organizes products by class of buyer and;degree of processing. The commodity structure (tables 2 and:3) organizes products by similarity of end-use or material7composition. The entire output of various industries is5sampled to derive price indexes for the net output of(industries and their products (table 4).5Within the stage-of-processing system, finished goods<are commodities that will not undergo further processing and6are ready for sale to the final demand user, either an<individual consumer or business firm. Consumer foods include<unprocessed foods such as eggs and fresh vegetables, as well;as processed foods such as bakery products and meats. Other5finished consumer goods include durable goods such as5automobiles, household furniture, and appliances, and6nondurable goods such as apparel and home heating oil.9Capital equipment includes producer durable goods such as0heavy motor trucks, tractors, and machine tools.1The stage-of-processing category for intermediate6materials, supplies, and components consists partly of8commodities that have been processed but require further7processing. Examples of such semifinished goods include8flour, cotton yarn, steel mill products, and lumber. The8intermediate goods category also encompasses nondurable,8physically complete items purchased by business firms as:inputs for their operations. Examples include diesel fuel,0belts and belting, paper boxes, and fertilizers.3Crude materials for further processing are products9entering the market for the first time that have not been<manufactured or fabricated and that are not sold directly to8consumers. Crude foodstuffs and feedstuffs include items7such as grains and livestock. Examples of crude nonfood:materials include raw cotton, crude petroleum, coal, hides$and skins, and iron and steel scrap.7Producer price indexes for the net output of industries8and their products are grouped according to the Standard;Industrial Classification (SIC) and the Census product code;extension of the SIC. Industry price indexes are compatible<with other economic time series organized by SIC codes, such7as data on employment, wages, and productivity. Table 44lists indexes for the net output of major mining and3manufacturing industry groups at the 2-digit level.2Producer price indexes are based on selling prices3reported by establishments of all sizes selected by7probability sampling, with the probability of selection7proportionate to size. Individual items and transaction5terms from these firms are also chosen by probability:proportionate to size. BLS strongly encourages cooperating<companies to supply actual transaction prices at the time of7shipment to minimize the use of list prices. Prices are:normally reported by mail questionnaire for the Tuesday ofthe week containing the 13th.7Price data are provided on a voluntary and confidential;basis; no one but sworn BLS employees are allowed access to<individual company price reports. All producer price indexes6are routinely subject to revision once, 4 months after9original publication, to reflect the availability of late'reports and corrections by respondents.6Net output values of shipments are used as weights for9industry indexes. Net output values refer to the value of0shipments from establishments in one industry to7establishments classified in another industry. However,6weights for commodity price indexes are based on gross2shipment values, including shipment values between;establishments within the same industry. As a result, broad<commodity grouping indexes such as the all commodities index8are affected by the multiple counting of price change at2successive stages of processing, which can lead to<exaggerated or misleading signals about inflation. Stage-of-5processing indexes partially correct this defect, but<industry indexes consistently correct for this at all levels;of aggregation. Therefore, industry and stage-of-processing;indexes are more appropriate than broad commodity groupings.for economic analysis of general price trends.7Weights for most traditional commodity groupings of the8PPI, as well as all indexes (such as stage-of-processing9indexes) calculated from traditional commodity groupings,9currently reflect 1987 values of shipments as reported in:the Census of Manufactures and other sources. From January91987 through December 1991, PPI weights were derived from;1982 shipment values. Industry indexes shown in table 4 are1also now calculated with 1987 net output weights.5Effective with publication of January 1988 data, many3important PPI series (including stage-of-processing9groupings and most commodity groups and individual items):were placed on a new reference base, 1982=100, to coincide:with the reference year of the shipment weights. From 19716through 1987, the standard reference base for most PPI9series was 1967=100. Except for rounding differences, the<shift to the new reference base did not alter any changes to5previously published percent changes for affected PPI9series. (See "Calculating Index Changes," below.) The new8reference base is not used for indexes with a base later9than December 1981, nor for indexes for the net output ofindustries and their products.6For further information on the underlying concepts and8methodology of the Producer Price Index, see chapter 16,8"Producer Prices," in BLS Handbook of Methods (September<1992), Bulletin 2414. Reprints are available from the Bureauof Labor Statistics on request.*MillworkITable 854. 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