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http://www.bls.gov/ppi              APRIL 14, 2009

                                 Producer Price Indexes - March 2009

        The Producer Price Index for Finished Goods decreased 1.2 percent in March, seasonally 
adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  This 
decline followed a 0.1-percent advance in February and a 0.8-percent increase in January.  At the 
earlier stages of processing, prices received by producers of intermediate goods fell 1.5 percent 
after decreasing 0.9 percent a month earlier, and the crude goods index declined 0.3 percent 
following a 4.5-percent drop in February.  (See table A.)

        Among finished goods, the index for energy goods turned down 5.5 percent in March 
after rising 1.3 percent in the preceding month.  Prices for finished consumer goods less foods 
and energy inched up 0.1 percent following a 0.4-percent advance in February.  The capital 
equipment index fell 0.2 percent in March after moving up 0.1 percent in the prior month.  By 
contrast, partially offsetting the downturn in finished goods prices, the decline in the index for 
finished consumer foods slowed to 0.7 percent in March from 1.6 percent in the previous month.  
Excluding foods and energy, finished goods prices were unchanged following a 0.2-percent rise 
in February.
        
        During the first quarter of 2009, the finished goods index declined at a 0.9-percent 
seasonally adjusted annual rate (SAAR), after falling at a 24.9-percent SAAR during the fourth 
quarter of 2008.  This slower rate of decrease can be traced to prices for finished energy goods, 
which moved down at a 2.7-percent SAAR for the 3 months ended in March after dropping at a 
76.7-percent SAAR for the 3 months ended in December.  Conversely, the index for finished 
consumer foods decreased at a 10.1-percent SAAR for the 3 months ended in March after falling 
at a 4.8-percent SAAR for the 3 months ended in December.  Prices for finished goods less foods 
and energy increased at a 2.6-percent SAAR during the first quarter of 2009 after rising at the 
same rate in the fourth quarter of 2008.  At the earlier stages of processing, the intermediate 
goods index moved down at an 11.7-percent SAAR during the first quarter of 2009 after falling 
at a 39.7-percent SAAR during the fourth quarter of 2008, and prices for crude goods decreased 
at a 27.2-percent SAAR for the 3 months ended in March after dropping at a 78.0-percent SAAR 
for the 3 months ended in December.  (See summary table.)

        
        Before seasonal adjustment, the Producer Price Index for Finished Goods declined 0.7 
percent in March to 168.9 (1982 = 100).  From March 2008 to March 2009, finished goods 
prices fell 3.5 percent.  Over the same period, the index for finished energy goods decreased 25.4 
percent and prices for finished consumer foods moved down 1.1 percent.  By contrast, the index 
for finished goods less foods and energy advanced 3.8 percent.  For the 12 months ended in 
March, prices received by manufacturers of intermediate goods fell 8.9 percent, and the crude 
goods index dropped 39.0 percent.

Finished goods

	The finished energy goods index declined 5.5 percent following a 1.3-percent increase in 
February.  Most of this downturn can be attributed to gasoline prices, which fell 13.1 percent in 
March after rising 8.7 percent a month earlier.  The index for residential electric power also 
turned down following an increase in February.  Prices for liquefied petroleum gas, home heating 
oil, diesel fuel, kerosene, and lubricating and similar oils decreased more than they had in the 
preceding month.  By contrast, partially offsetting the downturn in finished energy goods prices, 
the decline in the index for residential natural gas slowed to 2.4 percent from 3.6 percent in 
February.  Prices for lubricating grease turned up in March.  (See table 2.)

        The index for finished consumer goods less foods and energy edged up 0.1 percent after 
rising 0.4 percent in February.  The increase in prices for sanitary paper products slowed to 0.1 
percent in March from 1.6 percent in the prior month.  The indexes for light motor trucks; 
alcoholic beverages; women's, girls', and infants' apparel; and periodical circulation turned 
down after increasing in February.  Conversely, prices for toys, sporting goods, and small arms 
rose 0.3 percent following a 2.6-percent decline in February.  The indexes for motor homes built 
on purchased chassis and for surgical appliances and supplies also turned up in March.  Prices 
for consumer plastic products fell less than they had in the preceding month.  During the first 
quarter of 2009, the index for finished consumer goods less foods and energy increased at a 3.4-
percent SAAR after rising at a 2.7-percent SAAR in the fourth quarter of 2008.

	Capital equipment prices decreased 0.2 percent in March after edging up 0.1 percent a 
month earlier.  The civilian aircraft index fell 1.4 percent following a 0.5-percent advance in 
February.  Prices also turned down in March for light motor trucks, turbine and turbine generator 
sets, heavy motor trucks, and x-ray and electromedical equipment.  The index for non-
lithographic printing presses was unchanged after rising in the previous month.  Conversely, 
prices for communication and related equipment were unchanged in March compared with a 0.8-
percent decline a month earlier.  The index for signs and advertising displays also was 
unchanged following a decrease in February.  Prices for electronic computers fell less than they 
had in February.  The indexes for nonwood furniture and store fixtures and for construction wheel
and crawler tractors turned up after falling in the prior month.  Prices for capital equipment 
increased at a 1.5-percent SAAR in the 3 months ended March 2009 after rising at a 2.6-percent 
SAAR in the 3 months ended December 2008.

        Price declines for finished consumer foods slowed to 0.7 percent in March from 1.6 
percent in February.  The index for fluid milk products fell 2.8 percent in March after dropping 
9.7 percent in the previous month.  The index for eggs for fresh use also decreased less than in 
February.  Prices for fresh vegetables (except potatoes), strawberries, shortening and cooking 
oils, and tree nuts turned up in March after falling a month earlier.  By contrast, beef and veal 
prices dropped 3.9 percent after declining 0.3 percent in the preceding month.  The pork index 
also decreased more than it had in February.  Prices for bread rolls, muffins, bagels, and 
croissants were unchanged in March after rising in the prior month.  

Intermediate goods

        The Producer Price Index for Intermediate Materials, Supplies, and Components fell 1.5 
percent in March subsequent to a 0.9-percent decrease in the prior month.  Prices for 
intermediate energy goods and for materials for nondurable manufacturing decreased more than 
they had a month earlier.  By contrast, partially offsetting the faster rate of decline in 
intermediate goods prices, the indexes for materials for durable manufacturing, intermediate 
foods and feeds, and materials and components for construction fell less than they had in 
February.  Prices for intermediate materials less foods and energy moved down 0.3 percent in 
March after declining 0.6 percent in the prior month.  (See table B.)  
        
        The intermediate energy goods index fell 6.3 percent in March following a 2.0-percent 
decrease in the previous month.  The electric power index moved down 0.3 percent after rising 
0.8 percent in February.  Gasoline prices also turned down in March.  The indexes for diesel fuel, 
jet fuel, liquefied petroleum gas, and heating oil decreased more than they had a month earlier.  
By contrast, prices for natural gas to electric utilities declined 1.8 percent compared with a 6.4-
percent drop in February.  The index for industrial natural gas also decreased less than it had in 
the prior month, and prices for residual fuels turned up in March.  (See table 2.)  The 
intermediate energy goods index declined at a 24.8-percent SAAR from December 2008 to 
March 2009 after decreasing at a 75.5-percent SAAR during the final quarter of 2008.  
        
        The index for materials for nondurable manufacturing decreased 1.0 percent following a 
0.8-percent decline in February.  Prices for basic inorganic chemicals moved down 4.6 percent 
after rising 6.4 percent a month earlier.  The index for rubber and rubber products also turned 
down in March.  Prices for phosphates and for thermoplastic resins and plastic materials 
increased less than they had in February.  By contrast, the basic organic chemicals index 
increased 1.5 percent compared with a 3.2-percent decline in the preceding month.  Prices for 
nitrogenates, medicinal and botanical chemicals, and water treating compounds also turned up in 
March.  The inedible fats and oils index declined less than it had a month earlier.  The index for 
materials for nondurable manufacturing moved down at a 7.0-percent SAAR for the 3 months 
ended March 2009 after dropping at a 58.8-percent SAAR in the previous 3 month period.  
        
        Prices for materials for durable manufacturing moved down 0.7 percent in March 
subsequent to a 2.6-percent decrease in the preceding month.  The cold rolled steel sheet and 
strip index fell 0.6 percent following a 5.8-percent decline a month earlier.  Prices for primary 
nonferrous metals also fell at slower rates compared with February.  The indexes for hot rolled 
steel sheet and strip and for semifinished steel mill products turned up in March.  Conversely, the 
index for basic inorganic chemicals decreased 4.6 percent after rising 6.4 percent in February.  
Prices for synthetic rubber also turned down in March.  The indexes for hot rolled steel bars, 
plates, and structural shapes and for steel pipe and tube decreased more than they had a month 
earlier.  From December 2008 to March 2009, prices for materials for durable manufacturing 
declined at a 24.0-percent SAAR after falling at a 52.6-percent SAAR from September to 
December 2008.  
        
        Prices for intermediate foods and feeds moved down 0.5 percent in March following a 
1.4-percent decrease in February.  The index for corn, cottonseed, and soybean cake and meal 
fell 1.9 percent subsequent to a 3.9-percent drop in the preceding month.  The fluid milk 
products index also declined less than a month earlier.  The indexes for shortening and cooking 
oils, processed eggs, and sugar and confectionary materials turned up in March.  By contrast, the 
beef and veal index fell 3.9 percent after edging down 0.3 percent in the previous month.  Prices 
for pork products also declined more than they had in February.  The index for formula feeds 
moved down in March after rising a month earlier.  The index for intermediate foods and feeds 
decreased at a 15.4-percent SAAR in the first quarter of 2009 after falling at a 33.8-percent 
SAAR in the final quarter of 2008.  
        
        Prices for materials and components for construction fell 0.3 percent in March following 
a 0.6-percent decline in the prior month.  The plastic products index inched down 0.1 percent 
subsequent to a 0.9-percent decline in February.  Prices for roofing asphalts, pitches, coatings, 
and cement also fell less than in the prior month.  The indexes for prefabricated metal buildings, 
metal doors and frames (except storm doors), and prefabricated structural wood members turned 
up in March.  By contrast, the index for prepared asphalt and tar roofing and siding products 
advanced 7.3 percent following a 10.5-percent gain a month earlier.  Prices for paving mixtures 
and blocks and for softwood lumber decreased more than they had in February.  The index for 
basic inorganic chemicals turned down in March.  The index for materials and components for 
construction declined at a 6.4-percent SAAR in the first quarter of 2009 after moving down at a 
10.9-percent SAAR in the prior quarter.  
        
Crude goods

        The Producer Price Index for Crude Materials for Further Processing fell 0.3 percent in 
March subsequent to a 4.5-percent decrease in February.  The index for crude foodstuffs and 
feedstuffs declined less than in the previous month.  Prices for crude energy materials turned up 
after falling in February.  Conversely, slightly counteracting the slower rate of decline in the 
crude goods index, prices for crude nonfood materials less energy turned down after rising a 
month earlier.  (See table B.)
        
        The index for crude foodstuffs and feedstuffs moved down 1.9 percent following a 3.9-
percent decrease in February.  In March, falling prices for slaughter poultry; hay, hayseeds, and 
oilseeds; slaughter cattle; and rough rice more than offset rising prices for slaughter barrows and 
gilts, corn, strawberries, tree nuts, and milk eligible for fluid use. (See table 2.)  The index for 
crude foodstuffs and feedstuffs declined at a 17.8-percent SAAR during the first quarter of 2009 
after dropping at a 51.2-percent SAAR in the fourth quarter of 2008.
        
        Prices for crude energy materials advanced 1.6 percent in March compared with an 8.5-
percent decrease in the prior month.  Leading this upturn, the increase in the index for crude 
petroleum accelerated to 30.0 percent from 2.5 percent in February.  Price declines for natural 
gas slowed to 15.6 percent in March from 17.8 percent in the previous month.  By contrast, coal 
prices rose 0.5 percent following a 2.2-percent gain a month earlier.  During the first 3 months of 
2009, the crude energy materials index fell at a 46.9-percent SAAR after plunging at an 87.9-
percent SAAR in the last 3 months of 2008.
        
        Prices for crude nonfood materials less energy turned down 1.6 percent in March 
subsequent to a 1.5-percent advance in February.  The index for iron and steel scrap decreased 
8.3 percent compared with a 2.6-percent decline in the previous month.  Price increases 
decelerated in March for gold ores, phosphates, grains, and for construction sand, gravel, and 
crushed stone.  The indexes for nonferrous scrap, ground or treated minerals and earths, and 
soybeans turned down after increasing in the preceding month.  By contrast, prices for high-
grade wastepaper decreased 4.2 percent in March following an 11.1-percent drop in the previous 
month.  Prices for strawberries turned up after falling in February.  For the 3 months ended 
March 2009, the crude nonfood materials less energy index moved down at a 0.4-percent SAAR 
after dropping at an 81.7-percent SAAR in the 3 months ended December 2008.
        
Net output price indexes

Mining, Utilities, and Manufacturing Industries.  The Producer Price Index for the Net Output 
of Total Mining, Utilities, and Manufacturing Industries fell 0.9 percent in March following a 
0.4-percent decrease in February.  (Net output price indexes are not seasonally adjusted.)  This 
faster rate of decline can be traced primarily to prices received by petroleum refineries, which 
dropped 6.8 percent in March after moving down 1.6 percent in the prior month.  The indexes for 
both electric power generation and distribution; automobile, light truck, and utility vehicle 
manufacturing; and aircraft manufacturing turned down after rising in February.  Prices received 
by phosphatic fertilizer manufacturers increased less than they had in the previous month.  By 
contrast, partially offsetting the faster rate of decline in the index for total mining, utilities, and 
manufacturing industries, the index for petrochemical manufacturing rose 11.5 percent in March 
following an 18.3-percent decrease a month earlier.  Prices received by the industries for crude 
oil and natural gas extraction and for oil and gas well drilling services also moved up after falling 
in February.  For the first 3 months of 2009, the total mining, utilities, and manufacturing 
industries index declined at a 4.5-percent annualized rate compared with a 33.8-percent 
annualized rate of decrease in the final quarter of 2008.  In March, the index for total mining, 
utilities, and manufacturing industries was 103.9 (December 2006 = 100), 5.9 percent below its 
year-ago level.

Trade Industries.  The Producer Price Index for the Net Output of Total Trade Industries moved 
up 0.2 percent in March following a 0.9-percent advance in February.  (Trade indexes measure 
changes in margins received by wholesalers and retailers.)  Margins received by women's 
clothing stores rose 0.9 percent in March after jumping 9.5 percent a month earlier.  The margin 
index for pharmacies and drug stores also increased less than it had in February.  Margins 
received by merchant wholesalers of nondurable goods and gasoline stations with convenience 
stores turned down in March.  Conversely, the margin index for supermarkets climbed 5.1 
percent after declining 1.7 percent in February.  Margins received by merchant wholesalers of 
durable goods, automotive parts and accessories stores, and family clothing stores also moved up 
in March following decreases in the preceding month.  The margin index for gasoline service 
stations fell less than it had in February.  During the first quarter of 2009, the index for total trade 
industries rose at a 3.3-percent annualized rate, the same rate of increase as in the final quarter of 
2008.  In March, the index for total trade industries was 112.0 (December 2006 = 100), 6.5 
percent higher than its year-ago level.

Transportation and Warehousing Industries.  The Producer Price Index for the Net Output of 
Total Transportation and Warehousing Industries declined 1.3 percent in March after falling 0.5 
percent in February.  Prices received by the truck transportation industry group decreased 1.4 
percent following a 0.2-percent advance in the prior month.  The index for Coastal and Great 
Lakes freight transportation also turned down in March.  Prices received by the couriers and 
messengers industry group increased less than they had in February.  Prices received by the 
inland water freight transportation industry fell more in March than they had a month earlier, 
while the index for the U.S. Postal Service was unchanged after rising in the prior month.  By 
contrast, the index for the scheduled air transportation industry group decreased 2.6 percent in 
March following a 4.4-percent drop in February.  Prices received by line-haul railroads also 
declined less than in the preceding month.  Prices received by the deep sea freight transportation 
industry were unchanged after falling in February, while the index for the nonscheduled air 
passenger chartering industry turned up in March.  For the first 3 months of 2009, the total 
transportation and warehousing industries index decreased at a 9.8-percent annualized rate after 
dropping at an 18.1-percent annualized rate in the final 3 months of 2008.  In March, the total 
transportation and warehousing industries index was 106.7 (December 2006 = 100), 2.8 percent 
lower than its year-ago level.

Total Traditional Service Industries.  The Producer Price Index for the Net Output of Total 
Traditional Service Industries moved down 0.5 percent in March following a 0.3-percent decline 
in February.  Prices received by the industry group for depository credit intermediation fell 5.7 
percent compared with a 3.1-percent decline in the preceding month.  The industry group index 
for securities, commodity contracts, and other financial investments and related activities also 
fell more than it had in February.  Prices received by general medical and surgical hospitals and 
by offices of physicians (excluding metal health) increased less in March than in the prior month.  
The index for real estate agents and brokers was unchanged after rising in February.  Conversely, 
prices received by direct health and medical insurance carriers advanced 1.4 percent in March 
following no change in the previous month.  The indexes for lessors of nonresidential buildings 
and for non-casino hotels and motels turned up after falling in February.  For the first 3 months 
of 2009, the total traditional service industries index decreased at a 1.6-percent annualized rate, 
the same rate of decline as in the final 3 months of 2008.  In March, the index for total traditional 
service industries was 101.5 (December 2006 = 100), unchanged from its year-ago level.
   
                                                 *****

Producer Price Index data for April 2009 are scheduled to be released on Thursday, May 14, 
2009 at 8:30 a.m. (EDT).