FOR DATA ONLY:  (202) 691-5200      USDL 03-421
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EDT), THURSDAY,
http://www.bls.gov/ppi              AUGUST 14, 2003
                                     
                    Producer Price Indexes -- July 2003

     The Producer Price Index for Finished Goods inched up 0.1 percent in
July, seasonally adjusted, the Bureau of Labor Statistics of the U.S.
Department of Labor reported today.  This increase followed a 0.5-percent
rise in June and a 0.3-percent decrease in May.  At the earlier stages of
processing, prices received by manufacturers of intermediate goods went up
0.2 percent in July, compared with a 0.5-percent gain in June.  The index
for crude materials declined 2.9 percent, after climbing 4.5 percent in the
prior month.  (See table A.)

Table A.  Monthly and annual percent changes in selected stage-of-processing price
indexes, seasonally adjusted
 ______________________________________________________________________________________
|        |                                                         |         |         |
|        |                   Finished goods                        |         |         |
|        |                                                         |         |         |
|        |---------------------------------------------------------|         |         |
|        |          |          |          |         |  Change in   |         |         |
|        |          |          |          | Except  |finished goods| Inter-  |         |
|        |          |          |          |foods and|from 12 months| mediate |  Crude  |
| Month  |  Total   |  Foods   |  Energy  | energy  |  ago(unadj.) | goods   |  goods  |
|--------------------------------------------------------------------------------------|

 2002                                                   
   July       0.0       -0.1        1.1       -0.3        -1.2         0.2        0.8
   Aug.         0        -.4        1.4        -.1        -1.5          .4        1.8
   Sept.       .3        -.4        1.2         .3        -1.8          .5        2.2
   Oct.        .8         .4        3.4         .3          .7          .7        2.2
   Nov.       -.3         .4       -1.6        -.1         1.0         -.1        3.7
   Dec.       -.3         .4         .2        -.6         1.2         -.1        2.0
                                                                               
 2003                                                                          
   Jan.       1.4        1.9        4.6         .3         2.5         1.2        7.6
   Feb.       1.1         .4        7.4        -.1         3.3         2.0        5.2
   Mar.     r 1.4       r .2      r 5.4       r .7       r 4.0         2.1     r 13.0
   Apr.    r -1.7       r .8     r -8.5      r -.6         2.4        -2.2    r -16.0
   May        -.3         .1       -2.6         .1         2.5         -.8        1.7
   June        .5         .4        3.4        -.1         2.9          .5        4.5
   July        .1        -.2         .3         .2         3.0          .2       -2.9
r=revised.  Some of the figures shown above and elsewhere in this release may differ 
from those previously reported because data for March 2003 have been revised to reflect 
the availability of late reports and corrections by respondents.

                                    -2-

     The index for finished energy goods advanced 0.3 percent in July,
following a 3.4-percent rise in June, and accounted for most of the slower
rate of increase in finished goods prices.  Prices for finished consumer
foods moved down 0.2 percent, after rising 0.4 percent in the preceding
month.  By contrast, the index for finished goods other than foods and
energy turned up 0.2 percent in July, following a 0.1-percent decrease a
month earlier.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods declined 0.1 percent in July to 143.0 (1982 = 100).  From July 2002
to July 2003, the finished goods index moved up 3.0 percent.  Over the same
period, prices for finished energy goods increased 14.4 percent, the index
for finished consumer foods rose 3.7 percent, and prices for finished goods
other than foods and energy edged up 0.2 percent.  Earlier in the pipeline,
the index for intermediate goods climbed 4.4 percent and prices received by
crude goods producers jumped 24.5 percent for the 12-month period ended in
July.

Finished goods

     The rate of increase in prices for finished energy goods slowed to 0.3
percent in July from a 3.4-percent rate in June.  The gasoline index went
up 3.6 percent, compared with a 7.6-percent gain in the previous month.
Prices for home heating oil also rose less in July than they did a month
earlier.  The index for residential natural gas was unchanged, following a
June increase.  Prices for residential electric power and liquefied
petroleum gas turned down in July.

Table B.  Monthly and annual percent changes in selected price indexes for 
intermediate goods and crude goods, seasonally adjusted
 __________________________________________________________________________________
|      |                                     |                                     |
|      |       Intermediate goods            |       Crude goods                   |
|      |                                     |                                     |
|      |---------------------------------------------------------------------------|
|      |       |        |         |Change in |       |         |         | Change  |
|      |       |        |         | interme- |       |         |         |in crude |
|      |       |        |         |  diate   |       |         |         | goods   |
|      |       |        |         |goods from|       |         |         | from 12 |
|      |       |        | Except  |12 months |       |         | Except  | months  |
|      |       |        |foods and|   ago    |       | Energy  |foods and|  ago    |
|Month | Foods | Energy | energy  | (unadj.) | Foods | (unadj.)| energy  |(unadj.) |
|----------------------------------------------------------------------------------|

 2002                                                           
  July    1.3       0.0      0.2       -1.5      0.6       0.3      1.7      -6.2
  Aug.     .7       1.5       .2       -1.0      1.7       3.2      -.4      -3.8
  Sept.   1.1       2.2       .1        -.6      1.3       4.6      -.2       3.1
  Oct.    -.3       3.4       .2        1.6       .2       5.1       .3      15.4
  Nov.     .5      -1.2       .1        2.4      1.1       7.8      1.4      13.7
  Dec.    1.0       -.5      -.1        3.2      1.3       3.3       .2      24.7
                                                                           
 2003                                                                       
  Jan.    1.5       5.6       .4        4.5      5.3      13.0      1.3      28.7
  Feb.     .7       7.9       .7        6.6       .7       9.9      3.4      36.7
  Mar.    -.3    r 10.2     r .4        8.0   r -1.8    r 30.1    r -.3    r 46.8
  Apr.     .1   r -10.8    r -.1        4.7     r .5   r -30.5   r -1.1      18.0
  May     1.0      -4.4      -.1        4.2      2.4       2.5     -1.9      19.1
  June    1.9       2.0        0        4.5      -.5      10.7       .6      29.4
  July    -.4       1.3      -.1        4.4     -3.0      -4.4       .8      24.5
r=revised.  Some of the figures shown above and elsewhere in this release may 
differ from those previously reported because data for March 2003 have been 
revised to reflect the availability of late reports and corrections by 
respondents.

                                    -3-

     The finished consumer foods index declined 0.2 percent in July, its
first decrease in 10 months.  The beef and veal index declined 5.6 percent
in July, after rising 6.7 percent in the previous month.  Prices for pork,
roasted coffee, and for shortening and cooking oils also fell, following
increases in June.  The soft drinks index was unchanged in July, following
an increase a month earlier.  Finfish and shellfish prices fell more
rapidly in July then they did in the preceding month.  On the other hand,
the dairy products index jumped 3.4 percent in July, compared with a 1.1-
percent decrease in June.  Prices for fresh fruits and melons and for
bakery products also turned up in July.  The index for fresh and dry
vegetables fell less in July than it did in the prior month.  Prices for
eggs for fresh use rose at a faster rate than they did in June.

     The capital equipment index climbed 0.4 percent in July, after inching
down 0.1 percent in June.  Light motor truck prices moved up 0.5 percent,
following a 1.5-percent decline in the previous month.  The indexes for
communication and related equipment, passenger cars, office and store
machines and equipment, and tools and dies also rose, after falling in
June.  Prices for civilian aircraft and for railroad equipment increased at
a quicker pace in July than they did in the prior month.  By contrast, the
index for printing trades machinery decreased 0.7 percent, compared with a
1.7-percent rise in June.  Prices for commercial furniture also turned down
in July.  The indexes for x-ray and electromedical equipment, electronic
computers, and computer storage devices fell more than they did a month
earlier.

     Prices for finished consumer goods other than foods and energy inched
up 0.1 percent in July, after falling at the same rate in June.  In July,
rising prices for pharmaceutical preparations, light motor trucks,
passenger cars, book publishing, and for soaps and synthetic detergents
slightly outweighed falling prices for home electronic equipment, textile
housefurnishings, compact discs, sporting and athletic goods, and men's and
boys' apparel.

Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components moved up 0.2 percent in July, following a 0.5-percent rise in
the previous month.  Prices for intermediate energy goods advanced at a
slower pace than they did in the prior month.  The indexes for materials
for nondurable manufacturing, intermediate foods and feeds, and materials
for durable manufacturing turned down, after increasing in June.
Alternatively, prices for materials and components for construction rose
more in July than they did a month earlier.  The index for intermediate
goods other than foods and energy inched down 0.1 percent, after showing no
change in the previous month.  (See table B.)

     Prices for intermediate energy goods rose 1.3 percent in July,
following a 2.0-percent increase in the prior month.  Increasing prices for
residual fuel, gasoline, industrial electric power, and diesel fuel more
than offset declining prices for natural gas to electric utilities,
industrial natural gas, liquefied petroleum gas, and jet fuels.

     The index for materials for nondurable manufacturing turned down 0.3
percent in July, compared with a 0.4-percent increase in the previous
month.  Prices for primary basic organic chemicals, which fell 4.4 percent
following a 5.4-percent gain in June, led the reversal in the nondurable
manufacturing materials index.  The plastic resins and materials index
decreased at a faster rate in July than it did in the prior month.  Prices
for finished fabrics, gray fabrics, medicinal and botanical chemicals, and
inedible fats and oils declined, after moving up a month earlier.  By
contrast, the intermediate basic organic chemicals index fell 1.0 percent
in July, following a 5.9-percent drop in the previous month.  The indexes
for fertilizer materials and woodpulp also decreased less than they did a
month earlier.  Prices for leather and sulfuric acid rose, after moving
down in June.

                                    -4-

     Intermediate foods and feeds prices decreased 0.4 percent in July,
following a 1.9-percent increase in the prior month.  The beef and veal
index declined 5.6 percent, compared with a 6.7-percent gain in the
previous month.  Prices for crude vegetable oils, pork, shortening and
cooking oils, and refined sugar and byproducts also turned down, after
rising in June.  The flour index decreased at a quicker pace than it did a
month earlier.  Partially counteracting these decelerating prices, the
natural, processed, and imitation cheese index jumped 8.8 percent in July,
following a 1.3-percent drop in the preceding month.  Prices for prepared
animal feeds, processed young chickens, and fluid milk products advanced
more than they did in June.  The indexes for confectionery materials and
butter turned up, following declines in the prior month.

     Prices for durable manufacturing materials moved down 0.2 percent in
July, compared with a 0.3-percent increase in the previous month.  The
index for aluminum mill shapes fell 1.2 percent, following a 1.3-percent
gain in the preceding month.  The indexes for industrial and other
fabricated textile products and for unprocessed filament yarns also turned
down, after moving up a month earlier.  Prices for steel mill products
decreased more than they did in June.   The indexes for copper and brass
mill shapes, copper cathode and refined copper, and hardwood lumber
advanced at a slower rate than they did in the prior month.  On the other
hand, the building paper and board index jumped 12.5 percent in July,
following a 3.1-percent increase in the preceding month.  Plywood prices
also rose more than they did in June.  The indexes for prepared paint,
silver, and flat glass turned up, following declines a month earlier.
Prices for primary aluminum (except extrusion billet) fell at a slower pace
than they did in the previous month.

     The index for construction materials and components climbed 0.3
percent in July, after edging up 0.1 percent a month earlier.  Softwood
lumber prices moved up 4.6 percent, following a 0.6-percent increase in the
prior month.  The indexes for gypsum products, concrete products, and
architectural coatings turned up, after falling in June.  Prices for
plywood, treated wood, and millwork advanced more than they did in the
previous month.  By contrast, the nonferrous wire and cable index fell 0.7
percent in July, compared with a 1.3-percent rise in the preceding month.
Prices for fabricated structural metal products also turned down in June.
The indexes for plastic construction products, steel mill products, paving
mixtures and blocks, and asphalt felts and coatings decreased at a quicker
pace than they did a month earlier.

Crude goods

     The Producer Price Index for Crude Materials for Further Processing
fell 2.9 percent in July, after rising 4.5 percent in June.  Prices for
crude energy materials posted a decline in July, following an increase in
the prior month.  The crude foodstuffs and feedstuffs index fell more in
July than it did in June.  Conversely, prices for basic industrial
materials rose more than they did in June.  (See table B.)
     
     Prices for crude energy materials turned down 4.4 percent in July,
following an increase of 10.7 percent in the prior month.  Prices for
natural gas contributed heavily to this change of direction, declining 6.2
percent after advancing 11.8 percent in June.  The index for crude
petroleum slipped 0.7 percent, compared with a 12.3-percent increase in the
previous month.  Prices for coal followed suit, dropping 3.0 percent in
July after rising 1.5 percent in June.
     
     The index for foodstuffs and feedstuffs declined 3.0 percent in July,
after falling 0.5 percent in June.  Corn prices dropped 13.4 percent,
compared with a 1.0-increase in June.  The indexes for wheat, slaughter
cattle, and soybeans fell more in July than they did in June.  Prices for
slaughter hogs and Irish potatoes for processing turned down, after rising
in the previous month.  By contrast, the fluid milk index advanced 4.1
percent, following a 2.3-percent decrease in June.  Prices for fresh fruits
and melons also turned up, after falling in June.  The index for fresh
vegetables (except potatoes) fell less than it did in the previous month.
Prices for slaughter broilers and fryers rose more quickly in July than
they did in June.
     
                                    -5-
                                     
     Prices for crude nonfood materials other than energy rose 0.8 percent
in July, following a June rise of 0.6 percent.  The iron and steel scrap
index increased 3.1 percent, after falling 2.5 percent in June.  Prices for
raw cotton advanced at a faster pace in July than they did in June.  July
prices for hides and skins exhibited no change, after falling in the
previous month.  The index for phosphates declined at a slower rate than in
June.  On the other hand, nonferrous metal ore prices fell 1.2 percent,
following an increase of 7.2 percent in the previous month.  The indexes
for gold ores and copper base scrap also turned down.  Wastepaper prices
dropped in July, after showing no movement in June.

Net output price indexes for mining, manufacturing, and services industries

Mining.  The Producer Price Index for the Net Output of Total Mining
Industries fell 3.7 percent in July, after registering an 8.6-percent gain
in June.  (Net output price indexes are not seasonally adjusted.)  Prices
received by the crude petroleum and natural gas industry declined 4.5
percent, following an 11.8-percent increase in the preceding month.  The
industry indexes for natural gas liquids and natural gas residue,
bituminous coal and lignite surface mining, gold ores, crushed and broken
limestone, and oil and gas field exploration services also turned down in
July.  Prices received by the oil and gas well drilling industry rose less
in July than they did a month earlier.  On the other hand, the industry
index for coal mining services advanced 8.3 percent, after decreasing 0.9
percent in June.  Prices received by the industry for bituminous coal
underground mining showed no change in July, compared with a 0.5-percent
decline in the previous month.  In July, the Producer Price Index for the
Net Output of Total Mining Industries was 133.2 (December 1984 = 100), 42.5
percent above its year-ago level.

Manufacturing.  The Producer Price Index for the Net Output of Total
Manufacturing Industries went up 0.2 percent in July, slightly less than
the 0.3-percent increase observed in June.  Prices received by the
industries for petroleum refining and related products, lumber and wood
products (except furniture), fabricated metal products, nonmetallic mineral
products, and electrical and electronic machinery and equipment rose in
July.  Conversely, the industry indexes for primary metals, transportation
equipment, and for chemicals and allied products fell in July.  In July,
the Producer Price Index for the Net Output of Total Manufacturing
Industries was 136.5 (December 1984 = 100), 2.2 percent above its year-ago
level.

Services.  Among service industries, prices received by the industries for
offices of physicians, operators and lessors of nonresidential buildings,
property and casualty insurance, deep sea foreign transportation of
freight, general medical and surgical hospitals, hotels and motels, and
scheduled air transportation increased in July.  Alternatively, the
industry indexes for building cleaning and maintenance services, cable and
other pay television services, and air courier services fell in July.

                                   *****
             Producer Price Index data for August 2003 will be
        released on Friday, September 12, 2003, at 8:30 a.m. (EDT).

                                    -6-
                                     
                         Resampling of Industries
                                     
     Effective with this release, the Producer Price Index (PPI) includes
data for 26 resampled industries.  The Bureau of Labor Statistics
periodically updates the sample of producers providing data for the PPI to
reflect current conditions more accurately when the structure, membership,
technology, or product mix of an industry shifts.  The first results of
this systematic process were published in July 1986.  Subsequent efforts
have been completed at 6-month intervals.

     For information on specific index additions, deletions, and recodes
that are effective with this semiannual update, see the July 2003 issue of
the PPI Detailed Report or contact the Division of Industrial Prices and
Price Indexes, Section of Index Analysis and Public Information at ppi-
info@BLS.gov or (202) 691-7705.

Standard
Industrial
Classification
(SIC) Code                      Industry

2021                         Creamery butter
2044                         Rice milling
2046                         Wet corn milling
2394                         Canvas and related products
2397                         Schiffli machine embroideries
2591                         Drapery hardware and blinds and shades
2771                         Greeting card publishing
2813                         Industrial gases
2822                         Synthetic rubber
2873                         Nitrogenous fertilizers
2874                         Phosphatic fertilizers
2875                         Fertilizers, mixing only
2879                         Pesticides and other agricultural chemicals
3021                         Rubber and plastic footwear
3087                         Custom compounding of purchased resins
3524                         Lawn and garden equipment
3581                         Automatic merchandising machines
3582                         Commercial laundry equipment
3596                         Scales and balances, except laboratory
3678                         Electronic connector manufacturing
3691                         Storage batteries
3692                         Primary batteries, dry and wet
4612                         Crude petroleum pipelines
4613                         Refined petroleum pipelines
7349                         Building cleaning and maintenance services,
                               not elsewhere classified
8712                         Architectural services

                                    -7-

                             NAICS Conversion

     The net output price indexes will be converted from the 1987 Standard
Industrial Classification (SIC) basis to the 2002 North American Industry
Classification System (NAICS) basis with the February 2004 release of
January 2004 indexes.  The NAICS conversion involves major definitional
changes to many of the currently published SIC-based indexes.  After the
conversion to NAICS, SIC-based indexes will no longer be produced or
published.  Historical index data based on the NAICS publication structure
will be available depending on the scope of the definitional changes
between SIC and NAICS.

     For more information contact the Division of Industrial Prices and
Price Indexes, Section of Index Analysis and Public Information at ppi-
info@bls.gov or (202) 691-7705.

Table 1.  Producer price indexes and percent changes by stage of processing                                                     
(1982=100)                                                                                                                      
________________________________________________________________________________________________________________________________
                                                 |          |                       |Unadjusted     |                           
                                                 |          |                       |  percent      |Seasonally adjusted        
                                                 | Relative |    Unadjusted index   |change to      |percent change from:       
                    Grouping                     |importance|                       |July 2003 from:|                           
                                                 |          |_______________________|_______________|___________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |         
                                                 |          |Mar.   |June   |July   |  July | June  |Apr. to| May  to |June  to 
                                                 |   2002 1/|2003 2/|2003 2/|2003 2/|  2002 | 2003  |   May |   June  |  July   
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|_________
                                                 |                                                                              
Finished goods...................................|  100.000   144.2   143.1   143.0     3.0   -0.1     -0.3      0.5     0.1    
  Finished consumer goods........................|   73.339   146.3   145.1   145.0     3.9    -.1      -.5       .8      .1    
    Finished consumer foods......................|   20.672   142.8   145.3   145.0     3.7    -.2       .1       .4     -.2    
      Crude......................................|    1.333   123.7   121.1   119.8    -4.8   -1.1     -1.6     -8.3     1.0    
      Processed..................................|   19.339   144.4   147.3   147.1     4.4    -.1       .2      1.1     -.3    
    Finished consumer goods, excluding foods.....|   52.667   147.4   144.7   144.7     4.0    0        -.7       .9      .1    
      Nondurable goods less foods................|   36.364   151.7   149.0   149.1     5.7     .1     -1.0      1.4      .2    
      Durable goods..............................|   16.303   134.4   131.8   131.6      .1    -.2       .1      -.4      .2    
  Capital equipment..............................|   26.661   139.9   139.0   139.3      .7     .2       .1      -.1      .4    
    Manufacturing industries.....................|    7.839   139.9   139.8   140.3      .4     .4      -.1      0        .4    
    Nonmanufacturing industries..................|   18.822   139.8   138.6   138.8      .8     .1       .2      -.2      .3    
                                                 |                                                                              
Intermediate materials, supplies, and components.|  100.000   136.2   133.4   133.7     4.4     .2      -.8       .5      .2    
  Materials and components for manufacturing.....|   46.896   130.1   129.6   129.4     2.5    -.2      -.3       .3     -.2    
    Materials for food manufacturing.............|    2.918   129.0   134.4   133.7     9.0    -.5       .5      2.6     -.7    
    Materials for nondurable manufacturing.......|   14.707   140.1   137.0   136.6     5.3    -.3      -.9       .4     -.3    
    Materials for durable manufacturing..........|    9.136   126.9   127.3   127.3     1.6    0        -.2       .3     -.2    
    Components for manufacturing.................|   20.136   126.0   125.9   126.0     0       .1       .1      -.2      .1    
  Materials and components for construction......|   12.772   152.3   153.2   153.7     1.3     .3       .1       .1      .3    
  Processed fuels and lubricants.................|   16.110   124.8   111.5   113.0    16.1    1.3     -4.2      2.1      .9    
    Manufacturing industries ....................|    6.430   124.0   116.1   118.5    19.5    2.1     -3.7      2.0     1.5    
    Nonmanufacturing industries..................|    9.680   125.4   108.7   109.6    14.0     .8     -4.5      2.2      .5    
  Containers.....................................|    3.248   153.8   153.9   153.7     1.5    -.1       .1      -.2     -.1    
  Supplies.......................................|   20.974   141.2   141.4   141.6     1.8     .1       .1      -.1      .1    
    Manufacturing industries.....................|    4.589   146.4   146.8   146.9     1.5     .1      -.1      -.1      .1    
    Nonmanufacturing industries..................|   16.385   138.7   138.9   139.1     1.9     .1       .1      0        .1    
      Feeds......................................|    1.097   102.9   104.3   104.7     4.5     .4      2.1       .1      .4    
      Other supplies.............................|   15.288   143.1   143.2   143.4     1.8     .1      0        -.1      .1    
                                                 |                                                                              
Crude materials for further processing...........|  100.000   152.2   136.8   133.0    24.5   -2.8      1.7      4.5    -2.9    
  Foodstuffs and feedstuffs......................|   38.685   105.7   110.0   107.4     9.6   -2.4      2.4      -.5    -3.0    
  Nonfood materials..............................|   61.315   184.4   153.7   149.1    35.3   -3.0      1.2      7.7    -2.9    
    Nonfood materials except fuel 3/.............|   33.142   121.8   113.8   113.9    10.0     .1     -2.6      5.2      .1    
      Manufacturing 3/...........................|   32.295   112.1   104.6   104.7    10.3     .1     -2.7      5.3      .1    
      Construction...............................|    0.847   180.6   179.3   178.5    -2.3    -.4      -.2      -.4     -.3    
    Crude fuel 4/................................|   28.173   271.5   205.4   193.4    76.1   -5.8      5.2     10.3    -5.8    
      Manufacturing industries...................|    2.540   255.4   194.6   183.4    72.2   -5.8      4.9     10.1    -5.8    
      Nonmanufacturing industries................|   25.633   277.9   210.1   197.8    76.4   -5.9      5.2     10.3    -5.9    
                                                 |                                                                              
               Special groupings                 |                                                                              
                                                 |                                                                              
Finished goods, excluding foods..................|5/ 79.328   144.3   142.2   142.3     2.9     .1      -.4       .5      .3    
Intermediate materials less foods and feeds......|6/ 95.985   137.0   133.9   134.2     4.2     .2     -1.0       .5      .1    
Intermediate foods and feeds.....................|6/  4.015   121.0   125.1   124.8     7.8    -.2      1.0      1.9     -.4    
Crude materials less agricultural products 3/ 7/.|8/ 59.316   188.5   156.8   151.9    36.7   -3.1      1.3      7.9    -3.1    
                                                 |                                                                              
Finished energy goods............................|5/ 14.951   107.4   103.5   103.5    14.4    0       -2.6      3.4      .3    
Finished goods less energy.......................|5/ 85.049   148.6   148.3   148.3     1.1    0         .1      0        .1    
Finished consumer goods less energy..............|5/ 58.388   152.3   152.3   152.2     1.3    -.1       .1       .1     0      
                                                 |                                                                              
Finished goods less foods and energy.............|5/ 64.377   151.0   149.7   149.8      .2     .1       .1      -.1      .2    
Finished consumer goods less foods and energy....|5/ 37.716   158.4   157.0   156.9     -.1    -.1       .1      -.1      .1    
Consumer nondurable goods less foods and energy..|5/ 21.413   177.7   177.4   177.5     -.2     .1       .2       .1      .1    
                                                 |                                                                              
Intermediate energy goods........................|6/ 16.468   124.2   110.5   112.3    16.1    1.6     -4.4      2.0     1.3    
Intermediate materials less energy...............|6/ 83.532   137.6   137.6   137.5     2.0    -.1      -.1       .1     -.1    
Intermediate materials less foods and energy.....|6/ 79.517   138.7   138.5   138.4     1.8    -.1      -.1      0       -.1    
                                                 |                                                                              
Crude energy materials 3/........................|8/ 41.909   200.2   157.9   151.0    53.9   -4.4      2.5     10.7    -4.4    
Crude materials less energy......................|8/ 58.093   116.5   118.9   117.3     7.7   -1.3      1.0      -.2    -1.8    
Crude nonfood materials less energy 4/...........|8/ 19.406   148.1   145.4   146.5     3.9     .8     -1.9       .6      .8    
                                                 |                                                                              
________________________________________________________________________________________________________________________________
                                                                                                                                
  1/  Comprehensive relative importance figures are initially computed          4/  Excludes crude petroleum.
      after the publication of December indexes and are recalculated            5/  Percent of total finished goods.            
      after final December indexes are available.                               6/  Percent of total intermediate materials.    
  2/  The indexes for March 2003 have been recalculated to incorporate          7/  Formerly titled "Crude materials for        
      late reports and corrections by respondents.  All indexes                     further processing, excluding crude         
      are subject to revision 4 months after original publication.                  foodstuffs and feedstuffs, plant and        
  3/  Includes crude petroleum.                                                     animal fibers, oilseeds, and leaf tobacco." 
                                                                                8/  Percent of total crude materials.     
                 

Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing                         
(1982=100 unless otherwise indicated)                                                                                                
____________________________________________________________________________________________________________________________________ 
           |                                                       |                       |Unadjusted     |                         
           |                                                       |                       | percent       |Seasonally adjusted      
           |                                                       |   Unadjusted index    |change to      |percent change from:     
 Commodity |                                                       |                       |July 2003 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |Mar.   |June   |July   | July  | June  |Apr. to| May to|June to  
           |                                                       |2003 1/|2003 1/|2003 1/| 2002  | 2003  |   May |  June |  July   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           |FINISHED GOODS.........................................| 144.2   143.1   143.0     3.0   -0.1     -0.3     0.5     0.1   
           | FINISHED CONSUMER GOODS...............................| 146.3   145.1   145.0     3.9    -.1      -.5      .8      .1   
           |  FINISHED CONSUMER FOODS..............................| 142.8   145.3   145.0     3.7    -.2       .1      .4     -.2   
           |                                                       |                                                                 
01-11      |   Fresh fruits and melons 2/..........................|  73.0    78.2    78.7    -8.4     .6     17.8   -11.9      .6   
01-13      |   Fresh and dry vegetables 2/.........................| 137.6   125.6   120.4   -13.0   -4.1     -2.5   -14.1    -4.1   
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  97.9    95.6    97.9    27.5    2.4     -1.8      .8     8.2   
02-11      |   Bakery products 2/..................................| 195.0   195.0   195.3     3.1     .2       .2     -.3      .2   
02-13      |   Milled rice 2/......................................|  88.1    98.9   101.1    33.2    2.2      8.1     -.2     2.2   
02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.3   126.5   126.5     4.2    0        0       -.1     0     
02-21-01   |   Beef and veal 2/....................................| 126.7   138.4   130.6    14.2   -5.6      1.8     6.7    -5.6   
02-21-04   |   Pork................................................| 110.8   125.5   123.1     9.5   -1.9      -.1     7.8    -4.0   
02-22-03   |   Processed young chickens............................| 115.8   119.6   122.0    11.1    2.0       .3      .9     2.1   
02-22-06   |   Processed turkeys...................................|  88.6    88.8    90.0    -6.3    1.4       .1    -2.6     1.0   
02-23      |   Finfish and shellfish...............................| 197.6   196.9   192.7      .7   -2.1     -6.0    -1.5    -2.1   
02-3       |   Dairy products......................................| 133.4   134.1   139.3     3.9    3.9      -.4    -1.1     3.4   
02-4       |   Processed fruits and vegetables 2/..................| 133.7   133.2   133.5     1.2     .2       .1     -.1      .2   
02-55      |   Confectionery end products 2/.......................| 183.0   183.0   184.0     3.9     .5       .4     -.2      .5   
02-62      |   Soft drinks.........................................| 152.4   153.0   152.6     1.3    -.3       .2      .7     0     
02-63-01   |   Roasted coffee 2/...................................| 127.7   127.8   127.7     5.2    -.1      -.2     4.6     -.1   
02-78      |   Shortening and cooking oils 2/......................| 152.1   159.2   158.7    13.0    -.3      1.8     1.2     -.3   
           |                                                       |                                                                 
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 147.4   144.7   144.7     4.0    0        -.7      .9      .1   
           |                                                       |                                                                 
02-61      |   Alcoholic beverages.................................| 149.2   149.1   149.0     1.4    -.1       .1      .1      .1   
03-81-01   |   Women's apparel 2/..................................| 124.5   122.2   122.2     0      0        -.3     -.2     0     
03-81-02   |   Men's and boys' apparel 2/..........................| 127.8   126.6   126.4    -1.9    -.2      -.9      .2     -.2   
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 119.3   120.0   120.0      .4    0        -.7      .6     0     
03-82      |   Textile housefurnishings 2/.........................| 122.4   122.1   121.4     -.7    -.6       .1     0       -.6   
04-3       |   Footwear 2/.........................................| 147.3   147.5   147.6     1.0     .1      -.1     -.1      .1   
05-41      |   Residential electric power (Dec. 1990=100)..........| 114.8   123.1   123.3     3.2     .2      -.4     1.1     -.3   
05-51      |   Residential gas (Dec. 1990=100).....................| 174.5   174.1   172.7    34.1    -.8       .8     3.6     0     
05-71      |   Gasoline............................................| 120.4    99.5   101.1    16.2    1.6    -11.1     7.6     3.6   
05-73-02-01|   Fuel oil No. 2......................................| 129.3    85.7    87.3    18.9    1.9    -14.6     9.0     1.7   
06-38      |   Pharmaceutical preparations (June 2001=100) 2/......| 105.7   106.9   107.5     4.7     .6      -.1      .7      .6   
06-71      |   Soaps and synthetic detergents 2/...................| 129.5   129.5   130.1     0       .5       .1      .1      .5   
06-75      |   Cosmetics and other toilet preparations 2/..........| 140.5   140.3   140.4      .5     .1      -.1     -.1      .1   
07-12      |   Tires, tubes, tread, etc 2/.........................|  97.8    97.5    98.1     2.9     .6       .2     -.1      .6   
09-15-01   |   Sanitary papers and health products 2/..............| 150.5   150.2   149.9      .7    -.2      3.0     -.2     -.2   
09-31-01   |   Newspaper circulation 2/............................| 229.7   230.0   230.0     1.8    0        1.0     -.9     0     
09-32-01   |   Periodical circulation..............................| 220.2   220.7   220.7     5.1    0         .5      .4      .3   
09-33      |   Book publishing.....................................| 240.5   242.9   243.8     3.4     .4       .5     0        .6   
12-1       |   Household furniture.................................| 158.1   158.3   158.3      .5    0         .1     0        .1   
12-3       |   Floor coverings 2/..................................| 131.4   134.1   134.9     2.9     .6      -.9     1.9      .6   
12-4       |   Household appliances 2/.............................| 102.7   102.3   102.1    -2.3    -.2      -.5     -.4     -.2   
12-5       |   Home electronic equipment 2/........................|  67.9    67.6    67.0    -3.0    -.9      -.1     -.4     -.9   
12-62      |   Household glassware.................................| 169.2   169.0   169.0     -.4    0        2.0     -.1      .1   
12-64      |   Household flatware 2/...............................| 145.2   145.2   145.2      .1    0        0       0       0     
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 133.4   133.3   134.0     0       .5      0       -.1      .5   
14-11-01   |   Passenger cars......................................| 132.8   127.2   126.5      .4    -.6       .2     -.7      .4   
15-11      |   Toys, games, and children's vehicles 2/.............| 125.2   125.0   125.0      .2    0        0       0       0     
15-12      |   Sporting and athletic goods 2/......................| 125.5   125.3   124.6     -.6    -.6       .3     -.2     -.6   
15-2       |   Tobacco products 2/.................................| 434.9   429.4   429.6    -8.0    0         .2     -.1     0     
15-5       |   Mobile homes 2/.....................................| 166.9   168.9   169.2     1.3     .2       .4      .1      .2   
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 132.1   131.9   131.5     1.2    -.3       .2      .3     -.3   
15-94-04   |   Costume jewelry and novelties 2/....................| 144.3   144.3   144.3     0      0        0       0       0     
           |                                                       |                                                                 
           | CAPITAL EQUIPMENT.....................................| 139.9   139.0   139.3      .7     .2       .1     -.1      .4   
           |                                                       |                                                                 
11-1       |   Agricultural machinery and equipment 2/.............| 160.0   160.4   160.6     1.3     .1      1.0      .1      .1   
11-2       |   Construction machinery and equipment................| 152.8   153.6   153.6     1.5    0         .2      .1      .1   
11-37      |   Metal cutting machine tools 2/......................| 150.8   150.2   150.4    -2.1     .1      -.1     -.1      .1   
11-38      |   Metal forming machine tools 2/......................| 167.3   167.3   167.7      .5     .2      0       0        .2   
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 139.6   138.7   139.2    -1.1     .4      -.4     -.1      .4   
11-41      |   Pumps, compressors, and equipment...................| 162.5   162.9   163.1     1.2     .1       .1      .2     -.1   
11-44      |   Industrial material handling equipment 2/...........| 137.7   138.0   138.3     1.1     .2      0        .3      .2   
11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  35.0    34.5    33.9   -20.2   -1.7      -.6    -1.1    -1.7   
11-62      |   Textile machinery 2/................................| 157.9   157.9   157.9      .8    0         .1      .6     0     
11-64      |   Paper industries machinery (June 1982=100)..........| 170.3   170.7   170.3      .7    -.2       .1     -.2     -.2   
11-65      |   Printing trades machinery 2/........................| 142.7   144.6   143.6     -.2    -.7      -.5     1.7     -.7   
11-74      |   Transformers and power regulators 2/................| 131.5   131.4   132.3      .7     .7      0       -.8      .7   
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 106.4   106.1   106.5     -.4     .4       .6     -.7      .4   
11-79-05   |   X-ray and electromedical equipment 2/...............| 100.0   101.6   100.8     -.4    -.8       .7     -.3     -.8   
11-91      |   Oil field and gas field machinery ..................| 138.1   139.9   140.2     3.2     .2       .4      .2      .3   
11-92      |   Mining machinery and equipment 2/...................| 155.0   154.7   154.7     1.8    0        0       -.4     0     
11-93      |   Office and store machines and equipment 2/..........| 110.4   112.1   114.1     1.6    1.8       .4     -.5     1.8   
12-2       |   Commercial furniture 2/.............................| 161.8   162.6   162.5      .9    -.1       .2      .1     -.1   
14-11-05   |   Light motor trucks..................................| 155.0   145.2   144.5     -.8    -.5       .3    -1.5      .5   
14-11-06   |   Heavy motor trucks 2/...............................| 154.5   154.2   154.4     1.2     .1      -.8     -.1      .1   
14-14      |   Truck trailers 2/...................................| 139.5   139.5   139.4      .9    -.1      0       0       -.1   
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 175.4   178.9   181.4     6.1    1.4       .3     1.1     1.3   
14-31      |   Ships (Dec. 1985=100) 2/............................| 158.2   158.2   158.2     5.2    0        0       0       0     
14-4       |   Railroad equipment 2/...............................| 135.5   136.5   137.8     2.1    1.0       .3      .1     1.0   
           |                                                       |                                                                 
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 136.2   133.4   133.7     4.4     .2      -.8      .5      .2   
           |                                                       |                                                                 
           | INTERMEDIATE FOODS AND FEEDS..........................| 121.0   125.1   124.8     7.8    -.2      1.0     1.9     -.4   
           |                                                       |                                                                 
02-12-03   |   Flour 2/............................................| 123.1   124.6   123.2     6.9   -1.1      1.8     -.6    -1.1   
02-53      |   Refined sugar and byproducts 2/.....................| 122.1   123.1   122.9     4.2    -.2      -.6      .8     -.2   
02-54      |   Confectionery materials 2/..........................| 126.8   124.4   124.6     5.7     .2     -1.0     -.4      .2   
02-72      |   Crude vegetable oils 2/.............................| 110.2   139.5   137.8    63.7   -1.2      2.6    23.7    -1.2   
02-9       |   Prepared animal feeds 2/............................| 109.6   110.9   111.4     3.7     .5      1.7      .1      .5   
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 137.0   133.9   134.2     4.2     .2     -1.0      .5      .1   
           |                                                       |                                                                 
03-1       |   Synthetic fibers 2/.................................| 106.6   106.9   106.7      .6    -.2       .1      .2     -.2   
03-2       |   Processed yarns and threads 2/......................| 103.1   103.5   103.3     -.3    -.2       .3     -.2     -.2   
03-3       |   Gray fabrics 2/.....................................| 110.5   111.5   111.1     -.9    -.4       .7      .7     -.4   
03-4       |   Finished fabrics....................................| 119.9   120.8   120.6     -.1    -.2       .7      .4     -.5   
03-83-03   |   Industrial textile products 2/......................| 130.6   131.3   131.1    -1.8    -.2      -.4      .6     -.2   
04-2       |   Leather 2/..........................................| 210.8   209.6   211.9     3.7    1.1     -1.2    -1.7     1.1   
05-32      |   Liquefied petroleum gas 2/..........................| 171.4   149.9   142.9    46.6   -4.7      6.4     6.6    -4.7   
____________________________________________________________________________________________________________________________________ 
See footnotes at end of table.                                                                                                       

Table 2.  Producer price indexes and percent changes for selected commodity groupings by stage of processing - Continued             
(1982=100 unless otherwise indicated)                                                                                                
____________________________________________________________________________________________________________________________________ 
           |                                                       |                       |Unadjusted     |                         
           |                                                       |                       | percent       |Seasonally adjusted      
           |                                                       |   Unadjusted index    |change to      |percent change from:     
 Commodity |                                                       |                       |July 2003 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |Mar.   |June   |July   | July  | June  |Apr. to| May to|June to  
           |                                                       |2003 1/|2003 1/|2003 1/| 2002  | 2003  |   May |  June |  July   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |                                                                 
           |   -Continued..........................................|                                                                 
05-42      |   Commercial electric power...........................| 135.8   143.1   144.6     0.6    1.0     -0.8    -3.2     0     
05-43      |   Industrial electric power...........................| 143.3   148.2   151.2     4.3    2.0     -1.2    -2.4      .8   
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 191.6   175.3   175.4    35.4     .1       .2     4.7      .8   
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 202.8   183.5   182.8    40.6    -.4     -4.5     6.5     -.7   
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 257.7   150.8   148.1    57.9   -1.8     -9.2    12.8    -4.3   
05-72-03   |   Jet fuels...........................................| 117.8    79.4    79.6    11.3     .3     -8.3     6.4    -1.0   
05-73-03   |   No. 2 Diesel fuel...................................| 129.4    89.8    92.7    19.5    3.2    -17.6     4.1     2.8   
05-74      |   Residual fuel 2/....................................| 111.1    79.8   115.4    45.5   44.6     -9.4    -4.8    44.6   
06-1       |   Industrial chemicals 2/.............................| 149.1   141.0   139.4     8.6   -1.1     -1.1     1.2    -1.1   
06-21      |   Prepared paint......................................| 169.1   171.1   171.7     2.9     .4      1.5     -.2      .6   
06-22      |   Paint materials 2/..................................| 173.6   174.2   173.8      .8    -.2      -.2      .6     -.2   
06-31      |   Medicinal and botanical chemicals 2/................| 135.8   135.4   134.9     1.4    -.4      -.8      .4     -.4   
06-4       |   Fats and oils, inedible.............................| 121.9   118.2   116.9    21.1   -1.1     -5.9     1.9    -2.8   
06-51      |   Mixed fertilizers...................................| 119.0   119.9   119.5     4.8    -.3      -.4     0       0     
06-52-01   |   Nitrogenates........................................| 151.7   146.9   143.1    35.4   -2.6      -.5    -1.1     -.5   
06-52-02   |   Phosphates 2/.......................................| 111.9   108.8   107.9     9.0    -.8      -.4    -2.8     -.8   
06-53      |   Other agricultural chemicals 2/.....................| 148.5   148.5   148.5     -.1    0        -.4     -.6     0     
06-6       |   Plastic resins and materials........................| 149.6   150.9   147.9     9.3   -2.0     -3.7    -1.1    -2.7   
07-11-02   |   Synthetic rubber 2/.................................| 125.1   128.7   128.3     8.5    -.3       .4      .6     -.3   
07-21      |   Plastic construction products ......................| 138.8   139.5   137.7    -1.4   -1.3      -.8    -1.1    -1.5   
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 145.1   144.7   144.7     6.7    0         .1     -.3     0     
07-26      |   Plastic parts and components for manufacturing 2/...| 116.0   116.4   116.2      .1    -.2       .4     -.1     -.2   
08-11      |   Softwood lumber.....................................| 164.5   165.0   171.6      .7    4.0       .2      .6     4.6   
08-12      |   Hardwood lumber ....................................| 184.9   190.4   191.5     7.6     .6       .6     1.1      .7   
08-2       |   Millwork............................................| 180.4   181.4   182.3     1.2     .5      -.1      .1      .4   
08-3       |   Plywood 2/..........................................| 146.0   149.0   162.1     7.6    8.8      -.2     2.4     8.8   
09-11      |   Woodpulp 2/.........................................| 115.9   125.9   124.7     6.9   -1.0      4.1    -1.3    -1.0   
09-13      |   Paper 2/............................................| 145.5   146.9   146.9     1.9    0         .5      .1     0     
09-14      |   Paperboard 2/.......................................| 164.4   163.1   162.4      .4    -.4       .2     -.4     -.4   
09-15-03   |   Paper boxes and containers 2/.......................| 173.7   172.9   172.7      .8    -.1       .3     -.5     -.1   
09-2       |   Building paper and board 2/.........................| 133.4   146.1   164.3    26.2   12.5      1.7     3.1    12.5   
09-37      |   Commercial printing (June 1982=100) 2/..............| 158.4   158.4   158.0      .3    -.3      -.1      .1     -.3   
10-15      |   Foundry and forge shop products.....................| 137.0   137.2   137.4      .5     .1       .1      .2      .3   
10-17      |   Steel mill products.................................| 109.4   109.1   107.9     1.8   -1.1      -.9     -.6    -1.3   
10-22      |   Primary nonferrous metals 2/........................| 104.1   103.0   103.1      .9     .1       .8     -.1      .1   
10-25-01   |   Aluminum mill shapes 2/.............................| 143.7   145.4   143.6      .9   -1.2      -.1     1.3    -1.2   
10-25-02   |   Copper and brass mill shapes 2/.....................| 148.6   150.5   152.2     -.4    1.1      -.4     2.0     1.1   
10-26      |   Nonferrous wire and cable 2/........................| 132.3   135.9   134.9      .5    -.7      1.3     1.3     -.7   
10-3       |   Metal containers 2/.................................| 109.0   109.1   109.1     1.5    0        0       0       0     
10-4       |   Hardware 2/.........................................| 156.3   156.1   156.3      .3     .1      -.3      .3      .1   
10-5       |   Plumbing fixtures and brass fittings................| 183.0   183.6   183.5      .8    -.1       .3     0       -.1   
10-6       |   Heating equipment 2/................................| 163.0   163.3   163.3     3.5    0        -.1     0       0     
10-7       |   Fabricated structural metal products 2/.............| 145.4   145.5   145.3     -.3    -.1      -.1      .1     -.1   
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 130.7   130.4   130.9      .7     .4       .5      .4      .4   
10-89      |   Other misc. metal products 2/.......................| 127.5   127.3   127.4      .5     .1      -.2     -.1      .1   
11-45      |   Mechanical power transmission equipment.............| 171.3   171.5   170.6      .6    -.5       .1      .1     -.5   
11-48      |   Air conditioning and refrigeration equipment 2/.....| 137.2   137.3   137.0     -.2    -.2      0       -.1     -.2   
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100)........| 169.1   169.3   169.9     1.6     .4       .2      .2      .4   
11-49-05   |   Ball and roller bearings............................| 171.3   171.7   171.7      .8    0        0        .1     -.2   
11-71      |   Wiring devices 2/...................................| 153.0   153.3   153.4    -1.2     .1       .1      .2      .1   
11-73      |   Motors, generators, motor generator sets............| 147.5   147.2   147.3      .3     .1      -.1      .1     -.1   
11-75      |   Switchgear, switchboard, etc., equipment 2/.........| 159.6   159.2   159.1     1.3    -.1      -.3      .3     -.1   
11-78      |   Electronic components and accessories 2/............|  91.2    91.2    91.4    -1.0     .2      0       -.7      .2   
11-94      |   Internal combustion engines.........................| 144.0   143.9   144.4      .3     .3       .1     0        .2   
11-95      |   Machine shop products 2/............................| 140.5   140.5   140.6      .5     .1      -.1     0        .1   
13-11      |   Flat glass 2/.......................................| 111.1   111.1   111.2     -.7     .1       .1     -.1      .1   
13-22      |   Cement..............................................| 152.6   152.7   152.6     -.5    -.1       .7     0       0     
13-3       |   Concrete products...................................| 153.2   153.3   153.4      .5     .1       .2     -.2      .2   
13-6       |   Asphalt felts and coatings..........................| 115.1   119.0   118.2     5.6    -.7      3.0     -.4    -1.1   
13-7       |   Gypsum products 2/..................................| 165.6   166.6   175.5     5.2    5.3      -.5    -3.9     5.3   
13-8       |   Glass containers 2/.................................| 139.3   140.1   139.9     2.9    -.1      -.1      .4     -.1   
14-12      |   Motor vehicle parts 2/..............................| 111.9   111.7   111.7    -1.2    0         .3     -.1     0     
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 153.6   152.6   154.1     5.8    1.0       .1      .1     1.0   
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100).....| 150.8   149.2   149.4    -1.1     .1      -.1     0        .2   
15-42      |   Photographic supplies 2/............................| 118.5   118.6   118.6     -.4    0        0       0       0     
15-6       |   Medical/surgical/personal aid devices 2/............| 154.4   154.4   154.5     2.5     .1      -.6      .3      .1   
           |                                                       |                                                                 
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 152.2   136.8   133.0    24.5   -2.8      1.7     4.5    -2.9   
           |                                                       |                                                                 
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 105.7   110.0   107.4     9.6   -2.4      2.4     -.5    -3.0   
           |                                                       |                                                                 
01-21      |   Wheat 2/............................................|  96.6    98.2    88.1    -7.5  -10.3      7.3    -2.0   -10.3   
01-22-02-05|   Corn................................................|  94.6    97.3    86.1    -3.0  -11.5      3.1     1.0   -13.4   
01-31      |   Slaughter cattle 2/.................................| 112.4   114.2   110.8    17.7   -3.0      1.0    -2.7    -3.0   
01-32      |   Slaughter hogs......................................|  60.5    78.1    74.8    18.7   -4.2     24.1     9.5    -5.7   
01-41-02   |   Slaughter broilers/fryers...........................| 145.2   146.3   155.5    17.8    6.3     -2.8     2.9     5.0   
01-42      |   Slaughter turkeys...................................| 100.8   100.5    95.7   -12.4   -4.8     -4.2    -3.1    -6.5   
01-6       |   Fluid milk..........................................|  82.2    83.0    88.4     5.7    6.5       .6    -2.3     4.1   
01-83-01-31|   Soybeans 2/.........................................|  97.6   108.0   102.0     4.3   -5.6      3.9    -1.5    -5.6   
02-52-01-01|   Cane sugar,raw 2/...................................| 118.1   115.7   114.7     4.4    -.9       .3     -.5     -.9   
           |                                                       |                                                                 
           |  CRUDE NONFOOD MATERIALS..............................| 184.4   153.7   149.1    35.3   -3.0      1.2     7.7    -2.9   
           |                                                       |                                                                 
01-51-01-01|   Raw cotton 2/.......................................|  89.4    83.6    92.1    39.1   10.2     -8.1     1.3    10.2   
01-92-01-01|   Leaf tobacco 2/.....................................|  92.3     (3)     (3)     (3)    (3)      (3)     (3)     (3)   
04-19      |   Hides and skins (June 2001=100) 2/..................|  87.8    81.0    81.0    -1.6    0       -3.5    -3.0     0     
05-1       |   Coal 2/.............................................|  99.0   100.6    97.6    -1.8   -3.0     -2.5     1.5    -3.0   
05-31      |   Natural gas 2/......................................| 330.1   240.6   225.7   100.4   -6.2      6.6    11.8    -6.2   
05-61      |   Crude petroleum 2/..................................|  95.1    82.9    82.3    20.5    -.7     -3.8    12.3     -.7   
08-5       |   Logs, timber, etc...................................| 180.2   178.8   178.5    -1.0    -.2       .3     -.9      .3   
09-12      |   Wastepaper 2/.......................................| 195.8   202.7   195.6    -5.3   -3.5     -1.0     0      -3.5   
10-11      |   Iron ore 2/.........................................|  95.3    95.2    96.1     1.2     .9       .1     -.1      .9   
10-12      |   Iron and steel scrap................................| 176.1   162.8   168.6    10.8    3.6     -6.6    -2.5     3.1   
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  72.8    75.8    74.9     7.6   -1.2       .6     7.2    -1.2   
10-23-01   |   Copper base scrap 2/................................| 121.4   124.0   123.1     7.8    -.7     -1.4     4.6     -.7   
10-23-02   |   Aluminum base scrap.................................| 170.2   165.7   166.2     2.0     .3     -1.6     1.0     1.1   
13-21      |   Construction sand, gravel, and crushed stone........| 175.8   177.6   177.3     2.1    -.2       .2      .5     -.1   
____________________________________________________________________________________________________________________________________ 
                                                                                                                                     
1/  The indexes for March 2003 have been recalculated to incorporate                 2/  Not seasonally adjusted.                    
    late reports and corrections by respondents.  All indexes are subject            3/  Not available.                              
    to revision 4 months after original publication.                                                                                 

Table 3.  Producer price indexes for selected commodity groupings                                  
(1982=100 unless otherwise indicated)                                                    
_______________________________________________________________________________________________    
         |                                                |                                   |    
         |                                                |         Unadjusted index 1/       |    
Commodity|                                                |___________________________________|    
  code   |                    Grouping                    |March 2003 | June 2003 | July 2003 |    
_________|________________________________________________|___________|___________|___________|    
         |                                                |           |           |           |    
         | Finished Goods (1967=100)......................|   404.6   |   401.5   |   401.4   |    
         | All commodities................................|   141.2   |   138.0   |   137.8   |    
         |                                                |           |           |           |    
         |                                                |           |           |           |    
         |            MAJOR COMMODITY GROUPS              |           |           |           |    
         |                                                |           |           |           |    
         | Farm products and processed foods and feeds....|   128.1   |   131.2   |   130.7   |    
01       |   Farm products................................|   104.0   |   106.9   |   104.6   |    
02       |   Processed foods and feeds....................|   140.1   |   143.3   |   142.9   |    
         |                                                |           |           |           |    
         | Industrial commodities.........................|   143.6   |   139.2   |   139.2   |    
03       |   Textile products and apparel.................|   119.7   |   119.5   |   119.3   |    
04       |   Hides, skins, leather, and related products..|   162.3   |   159.8   |   160.6   |    
05       |   Fuels and related products and power.........|   129.6   |   114.4   |   114.1   |    
06       |   Chemicals and allied products 2/.............|   164.5   |   162.0   |   161.3   |    
07       |   Rubber and plastic products..................|   129.9   |   130.8   |   130.7   |    
08       |   Lumber and wood products.....................|   172.6   |   173.9   |   177.0   |    
09       |   Pulp, paper, and allied products.............|   189.1   |   190.0   |   190.1   |    
10       |   Metals and metal products....................|   128.5   |   128.4   |   128.3   |    
11       |   Machinery and equipment......................|   122.1   |   122.2   |   122.4   |    
12       |   Furniture and household durables.............|   133.6   |   134.0   |   134.0   |    
13       |   Nonmetallic mineral products.................|   147.8   |   148.4   |   148.4   |    
14       |   Transportation equipment.....................|   146.9   |   144.0   |   144.1   |    
15       |   Miscellaneous products.......................|   179.9   |   179.4   |   179.3   |    
         |                                                |           |           |           |    
         | Industrial commodities less fuels and related  |           |           |           |    
         |   products and power...........................|   145.3   |   144.8   |   144.8   |    
         |                                                |           |           |           |    
         |                                                |           |           |           |    
         |             OTHER COMMODITY GROUPINGS          |           |           |           |    
         |                                                |           |           |           |    
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |    
         |   and tree nuts................................|   107.5   |   105.3   |   103.4   |    
01-2     | Grains.........................................|    95.3   |    97.9   |    87.9   |    
01-3     | Slaughter livestock............................|    99.2   |   105.4   |   101.8   |    
01-4     | Slaughter poultry..............................|   134.5   |   135.2   |   141.6   |    
01-5     | Plant and animal fibers........................|    90.6   |    84.6   |    93.1   |    
01-7     | Chicken eggs...................................|   113.9   |   115.7   |   121.3   |    
01-8     | Hay, hayseeds, and oilseeds....................|   122.5   |   131.9   |   124.8   |    
01-83    | Oilseeds.......................................|   108.8   |   118.6   |   112.4   |    
01-9     | Other farm products............................|   137.6   |  'N.A.'   |  'N.A.'   |    
02-1     | Cereal and bakery products.....................|   170.0   |   170.8   |   170.9   |    
02-2     | Meats, poultry, and fish.......................|   125.0   |   133.1   |   130.1   |    
02-22    | Processed poultry..............................|   113.9   |   116.0   |   117.7   |    
02-5     | Sugar and confectionery........................|   149.0   |   148.6   |   149.0   |    
02-6     | Beverages and beverage materials...............|   149.9   |   150.2   |   150.0   |    
02-63    | Packaged beverage materials....................|   129.4   |   129.2   |   129.1   |    
02-7     | Fats and oils..................................|   142.2   |   158.6   |   154.0   |    
03-81    | Apparel........................................|   125.9   |   124.6   |   124.6   |    
04-4     | Other leather and related products.............|   148.2   |   147.6   |   148.4   |    
05-3     | Gas fuels......................................|   288.3   |   215.8   |   203.0   |    
05-4     | Electric power.................................|   136.8   |   144.5   |   145.8   |    
05-7     | Refined petroleum products.....................|   118.4   |    91.5   |    94.9   |    
06-3     | Drugs and pharmaceuticals......................|   272.1   |   274.2   |   274.9   |    
06-5     | Agricultural chemicals and products............|   136.7   |   134.9   |   133.9   |    
06-7     | Other chemicals and allied products............|   140.5   |   140.9   |   141.5   |    
07-1     | Rubber and rubber products.....................|   119.1   |   119.5   |   119.8   |    
07-11    | Rubber, except natural rubber..................|   124.4   |   128.0   |   127.7   |    
07-13    | Miscellaneous rubber products..................|   141.0   |   140.8   |   141.2   |    
07-2     | Plastic products...............................|   138.1   |   139.3   |   139.0   |    
08-1     | Lumber.........................................|   169.0   |   171.2   |   175.7   |    
09-1     | Pulp, paper, and products, excluding building  |           |           |           |    
         |   paper and board..............................|   157.0   |   157.8   |   157.4   |    
09-15    | Converted paper and paperboard products........|   165.5   |   165.4   |   165.4   |    
10-1     | Iron and steel.................................|   120.7   |   119.3   |   119.1   |    
10-2     | Nonferrous metals..............................|   122.3   |   123.1   |   122.8   |    
10-25    | Nonferrous mill shapes.........................|   137.0   |   138.4   |   137.5   |    
11-3     | Metalworking machinery and equipment...........|   150.2   |   150.0   |   150.4   |    
11-4     | General purpose machinery and equipment........|   155.6   |   155.7   |   155.7   |    
11-6     | Special industry machinery.....................|   165.5   |   166.8   |   168.7   |    
11-7     | Electrical machinery and equipment.............|   115.1   |   115.1   |   115.3   |    
11-9     | Miscellaneous machinery and equipment..........|   136.8   |   137.1   |   137.6   |    
12-6     | Other household durable goods..................|   158.6   |   158.7   |   159.1   |    
13-2     | Concrete ingredients...........................|   164.3   |   165.4   |   165.2   |    
14-1     | Motor vehicles and equipment...................|   131.7   |   127.6   |   127.3   |    
15-1     | Toys, sporting goods, small arms, etc..........|   133.6   |   133.5   |   133.1   |    
15-4     | Photographic equipment and supplies............|   105.2   |   105.3   |   105.3   |    
15-9     | Other miscellaneous products...................|   140.7   |   141.5   |   140.9   |    
__________________________________________________________|___________|___________|___________|    
                                                                                                   
1/  Data for March 2003 have been revised to reflect the availability of late reports and           
    corrections by respondents.  All data are subject to revision 4 months after original          
    publication.                                                                                   
                                                                                                   
2/  Prices of some items in this grouping are lagged 1 month.                                      
                                                                                                   
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted             
___________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change  
  Industry        |                Industry 1/                   |Index|_______________________|to_July_2003_from:_
    code          |                                              |base |       |       |       |        |         
                  |                                              |     |Mar.   |June   |July   |  July  |  June   
                  |                                              |     |2003 2/|2003 2/|2003 2/|  2002  |  2003   
__________________|______________________________________________|_____|_______|_______|_______|________|__________
                  |                                              |     |                                          
                  |Total mining industries...................... |12/84| 169.1   138.3   133.2     42.5     -3.7  
       10         | Metal mining................................ |12/84|  76.8    79.1    78.7      5.4      -.5  
       12         | Coal mining................................. |12/85|  93.7    94.1    93.4      -.5      -.7  
       13         | Oil and gas extraction...................... |12/85| 220.0   171.3   163.6     60.4     -4.5  
       14         | Mining and quarrying of non-metallic         |     |                                          
                  |  minerals, except fuels..................... |12/84| 145.9   146.7   146.7      2.1    0      
                  |                                              |     |                                          
                  |Total manufacturing industries............... |12/84| 138.7   136.2   136.5      2.2       .2  
       20         | Food and kindred products................... |12/84| 134.8   137.3   137.2      4.3      -.1  
       21         | Tobacco manufactures........................ |12/84| 380.9   376.1   376.3     -7.9       .1  
       22         | Textile mill products....................... |12/84| 115.1   115.5   115.4      -.3      -.1  
       23         | Apparel and other finished products made     |     |                                          
                  |  from fabrics and similar materials......... |12/84| 124.9   124.9   124.9      -.3    0      
       24         | Lumber and wood products, except furniture.. |12/84| 155.3   157.3   160.3      3.1      1.9  
       25         | Furniture and fixtures...................... |12/84| 147.2   147.5   147.5       .6    0      
       26         | Paper and allied products................... |12/84| 144.9   145.0   144.8      1.3      -.1  
       27         | Printing, publishing, and allied industries. |12/84| 196.7   197.2   197.2      2.1    0      
       28         | Chemicals and allied products............... |12/84| 165.2   165.2   164.9      4.0      -.2  
       29         | Petroleum refining and related products..... |12/84| 145.9   115.4   118.1     16.8      2.3  
       30         | Rubber and miscellaneous plastic products... |12/84| 128.1   129.0   128.8      2.6      -.2  
       31         | Leather and leather products................ |12/84| 142.4   141.8   142.4       .7       .4  
       32         | Stone, clay, glass, and concrete products... |12/84| 137.7   137.7   138.2       .9       .4  
       33         | Primary metal industries.................... |12/84| 118.0   118.3   117.6       .6      -.6  
       34         | Fabricated metal products, except machinery  |     |                                          
                  |  and transportation equipment............... |12/84| 132.7   132.7   132.9       .8       .2  
       35         | Machinery, except electrical................ |12/84| 116.0   116.2   116.1      -.9      -.1  
       36         | Electrical and electronic machinery,         |     |                                          
                  |  equipment, and supplies.................... |12/84| 104.0   103.6   103.7     -1.7       .1  
       37         | Transportation equipment.................... |12/84| 139.8   136.7   136.6       .8      -.1  
       38         | Measuring and controlling instruments;       |     |                                          
                  |  photographic, medical, optical goods;       |     |                                          
                  |  watches, clocks............................ |12/84| 129.7   130.0   130.0      1.3    0      
       39         | Miscellaneous manufacturing industries...... |12/85| 133.8   133.9   134.3       .7       .3  
                  |                                              |     |                                          
                  |Services industries                           |     |                                          
       40         | Railroad transportation..................... |12/96| 108.3   108.4   108.3      1.4     -0.1  
       42         | Motor freight transportation and warehousing |06/93| 127.3   127.5   127.8      2.8       .2  
       43         | United States Postal Service................ |06/89| 155.0   155.0   155.0    0        0      
       44         | Water transportation........................ |12/92| 140.9   147.8   151.1     11.6      2.2  
       45         | Transportation by air....................... |12/92| 161.8   162.4   163.3      3.4       .6  
       46         | Pipelines, except natural gas............... |12/86| 111.0   111.9   111.9      -.4    0      
       48         | Communications.............................. |06/01|  96.9    97.6    97.2      -.1      -.4  
       54         | Food stores................................. |12/99| 113.1   115.5   119.6      7.2      3.5  
       55         | Automotive dealers and gasoline service      |     |                                          
                  |  stations................................... |12/01|  88.5    92.0    88.6    -10.3     -3.7  
       59         | Miscellaneous retail........................ |06/00| 106.5   105.8   103.8       .7     -1.9  
       80         | Health services............................. |12/94| 122.8   123.7   124.3      3.9       .5  
       81         | Legal services.............................. |12/96| 125.1   125.4   125.4      3.3    0      
___________________________________________________________________________________________________________________
1/ Indexes in this table are derived from the net-output-weighted industry price indexes.  Because of differences 
   in coverage and aggregation methodology, they will generally not match movements of similarly titled indexes
   which are derived from traditional commodity groupings.                                                        
2/ The indexes for March 2003 have been recalculated to incorporate late reports and corrections by respondents.  
   All indexes are subject to revision 4 months after original publication.                                    
3/ Not available.                                                                                                 
   
Note: NAICS 2002 replaces the SIC classification system beginning with the release of PPI data for January 2004.  
See http://www.bls.gov/ppi/ppinaics.htm for details.

Table 5.  Producer price indexes by stage of processing, seasonally adjusted
(1982=100)
_____________________________________________________________________________________________________________
                                                       |
                                                       |                      Index 1/   
                                                       |_____________________________________________________
               Grouping                                |        |        |        |        |        |        
                                                       |  Feb.  |  Mar.  |  Apr.  |  May   |  June  |  July
                                                       |  2003  |  2003  |  2003  |  2003  |  2003  |  2003  
_______________________________________________________|________|________|________|________|________|________
                                                       |                                                    
      Finished goods...................................|  142.8    144.8    142.3    141.9    142.6    142.8    
        Finished consumer goods........................|  144.8    147.2    144.0    143.3    144.4    144.5
          Finished consumer foods......................|  142.9    143.2    144.3    144.4    145.0    144.7
            Crude......................................|  117.5    124.1    135.2    133.1    122.1    123.3
            Processed..................................|  145.0    144.8    145.0    145.3    146.9    146.5
          Finished consumer goods, excluding foods.....|  145.3    148.4    143.6    142.6    143.9    144.1
            Nondurable goods less foods................|  149.4    153.2    147.0    145.5    147.6    147.9      
            Durable goods..............................|  132.6    134.3    132.6    132.7    132.2    132.5
        Capital equipment..............................|  139.0    139.8    139.3    139.4    139.2    139.7
          Manufacturing industries.....................|  139.7    139.8    139.9    139.8    139.8    140.4
          Nonmanufacturing industries..................|  138.6    139.8    138.9    139.2    138.9    139.3
                                                       |
      Intermediate materials, supplies, and components.|  133.8    136.6    133.6    132.5    133.1    133.3
        Materials and components for manufacturing.....|  129.5    130.1    129.5    129.1    129.5    129.3
          Materials for food manufacturing.............|  130.3    129.4    130.0    130.7    134.1    133.1
          Materials for nondurable manufacturing.......|  138.1    140.0    137.7    136.4    136.9    136.5
          Materials for durable manufacturing..........|  127.0    127.0    127.0    126.8    127.2    127.0
          Components for manufacturing.................|  125.8    125.9    126.0    126.1    125.9    126.0
        Materials and components for construction......|  152.3    152.4    152.6    152.7    152.8    153.3
        Processed fuels and lubricants.................|  114.7    126.7    113.1    108.3    110.6    111.6
          Manufacturing industries ....................|  113.5    125.1    117.8    113.4    115.7    117.4
          Nonmanufacturing industries..................|  115.6    127.7    110.1    105.2    107.5    108.0
        Containers.....................................|  153.7    153.8    154.0    154.2    153.9    153.7
        Supplies.......................................|  140.7    141.2    141.4    141.5    141.4    141.6
          Manufacturing industries.....................|  145.7    146.4    147.1    146.9    146.8    146.9
          Nonmanufacturing industries..................|  138.3    138.7    138.8    138.9    138.9    139.1
            Feeds......................................|  102.2    102.9    102.1    104.2    104.3    104.7
            Other supplies.............................|  142.8    143.1    143.3    143.3    143.2    143.4
                                                       |
      Crude materials for further processing...........|  134.9    152.4    128.0    130.2    136.1    132.1
        Foodstuffs and feedstuffs......................|  108.2    106.3    106.8    109.4    108.9    105.6
        Nonfood materials..............................|  151.8    184.4    140.7    142.4    153.4    148.9
          Nonfood materials except fuel 2/.............|  122.0    121.8    110.7    107.8    113.4    113.5
            Manufacturing 2/...........................|  112.3    112.1    101.7     99.0    104.2    104.3
            Construction...............................|  181.2    180.8    179.5    179.1    178.4    177.9 
          Crude fuel 3/................................|  186.6    271.5    177.0    186.2    205.4    193.4
            Manufacturing industries...................|  177.1    255.4    168.5    176.8    194.6    183.4
            Nonmanufacturing industries................|  190.8    277.9    181.0    190.4    210.1    197.8
                                                       |
                     Special groupings                 |
                                                       |
      Finished goods, excluding foods..................|  142.6    144.9    141.6    141.0    141.7    142.1
      Intermediate materials less foods and feeds......|  134.4    137.4    134.3    133.0    133.6    133.8
      Intermediate foods and feeds.....................|  121.7    121.3    121.4    122.6    124.9    124.4
      Crude materials less agricultural products 2/....|  153.8    188.5    143.2    145.0    156.5    151.6
                                                       |
      Finished energy goods............................|  104.2    109.8    100.5     97.9    101.2    101.5
      Finished goods less energy.......................|  147.8    148.6    148.3    148.4    148.4    148.6
      Finished consumer goods less energy..............|  151.6    152.4    152.1    152.3    152.4    152.4
                                                       |
      Finished goods less foods and energy.............|  149.9    150.9    150.0    150.2    150.0    150.3 
      Finished consumer goods less foods and energy....|  157.3    158.4    157.2    157.4    157.2    157.4
      Consumer nondurable goods less foods and energy..|  177.2    177.6    177.0    177.3    177.4    177.5
                                                       |
      Intermediate energy goods........................|  114.3    126.0    112.4    107.4    109.6    111.0
      Intermediate materials less energy...............|  137.1    137.6    137.4    137.3    137.5    137.4    
      Intermediate materials less foods and energy.....|  138.2    138.7    138.5    138.4    138.4    138.3
                                                       |
      Crude energy materials 2/........................|  153.9    200.2    139.1    142.6    157.9    151.0
      Crude materials less energy......................|  118.4    116.9    116.8    118.0    117.8    115.7
      Crude nonfood materials less energy 3/...........|  148.5    148.1    146.4    143.6    144.5    145.6
_____________________________________________________________________________________________________________

  1/  All seasonally adjusted indexes are subject to change up to 5 years after original publication due to
      the recalculation of seasonal factors each January.  The indexes for March 2003 have been recalculated
      to incorporate late reports and corrections by respondents.
  2/  Includes crude petroleum.
  3/  Excludes crude petroleum.

Technical Note


                Brief Explanation of Producer Price Indexes

     The term Producer Price Index (PPI) refers to a family of indexes that
measure the average change over time in the selling prices received by
domestic producers of goods and services.  PPIs measure price change from
the perspective of the seller.  This contrasts with other measures, such as
the Consumer Price Index (CPI); CPIs measure price change from the
purchaser's perspective.  Sellers' and purchasers' prices may differ due to
government subsidies, sales and excise taxes, and distribution costs.

     More than 10,000 PPIs for individual products and groups of products
are released each month.  PPIs are available for the products of virtually
every industry in the mining and manufacturing sectors of the U.S. economy.
New PPIs are gradually being introduced for the products of industries in
the transportation, utilities, trade, finance, and services sectors of the
economy.

     More than 100,000 price quotations per month are organized into three
sets of producer price indexes: (1) stage-of-processing indexes; (2)
commodity indexes; and (3) indexes for the net output of industries and
their products.  The stage-of-processing structure (tables 1, 2, and 5)
organizes products by class of buyer and degree of fabrication.  The
commodity structure (tables 2 and 3) organizes products by similarity of
end-use or material composition.  The entire output of various industries
is sampled to derive price indexes for the net output of industries and
their products (table 4).

     Within the stage-of-processing system, finished goods are commodities
that will not undergo further processing and are 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.  Other
finished consumer goods include durable goods such as automobiles,
household furniture, and appliances; and nondurable goods such as apparel
and home heating oil.  Capital equipment includes producer durable goods
such as heavy motor trucks, tractors, and machine tools.

     The stage-of-processing category for intermediate materials, supplies,
and components consists partly of commodities that have been processed but
require further processing.  Examples of such semifinished goods include
flour, cotton yarn, steel mill products, and lumber.  The intermediate
goods category also encompasses nondurable physically complete items
purchased by business firms as inputs for their operations.  Examples
include diesel fuel, belts and belting, paper boxes, and fertilizers.

     Crude materials for further processing are products entering the
market for the first time that have not been manufactured or fabricated and
that are not sold directly to consumers.  Crude foodstuffs and feedstuffs
include items such as grains and livestock.  Examples of crude nonfood
materials include raw cotton, crude petroleum, coal, hides and skins, and
iron and steel scrap.

     Producer price indexes for the net output of industries and their
products are grouped according to the Standard Industrial Classification
(SIC).  Industry price indexes are compatible with other economic time
series organized by SIC codes, such as data on employment, wages, and
productivity.  Table 4 lists indexes for the net output of major mining and
manufacturing industry groups at the 2-digit level.

     Producer price indexes are based on selling prices reported by
establishments of all sizes selected by probability sampling, with the
probability of selection proportionate to size.  Individual items and
transaction terms from these firms are also chosen by probability
proportionate to size.  BLS strongly encourages cooperating companies to
supply actual transaction prices at the time of shipment to minimize the
use of list prices.  Prices are normally reported by mail questionnaire for
the Tuesday of the week containing the 13th.

    Price data are provided on a voluntary and confidential basis; no one
but sworn BLS employees are allowed access to individual company price
reports.  The Bureau publishes price indexes instead of unit dollar prices.
All producer price indexes are routinely subject to revision once, 4 months
after original publication, to reflect the availability of late reports and
corrections by respondents.

    The BLS periodically updates the PPI sample of survey respondents to
better reflect current conditions when the structure, membership,
technology, or product mix of an industry shifts significantly and to
spread reporting burden among smaller firms.  Results of these resampling
efforts are incorporated into the PPI every January and July.

    As part of an ongoing effort to expand coverage to sectors of the
economy other than mining and manufacturing, an increasing number of
service sector industries have been introduced into the PPI.  The following
list of recently introduced service industries includes the month in which
an article describing the industry's content appeared in the PPI Detailed
Report:

                                           PPI
                                        Detailed
             Industry                                    SIC   Report
                                                               Issue
                                                 
Wireless Telecommunications............................. 4812  July 1999
Telephone Communications, Except Radio Telephone........ 4813  July 1995
Television Broadcasting................................. 4833  July 2002
Grocery Stores.......................................... 5411  July 2000
Meat and Fish (Seafood) Markets......................... 5421  July 2000
Fruit and Vegetable Markets............................. 5431  July 2000
Candy, Nut, and Confectionery Stores.................... 5441  July 2000
Retail Bakeries......................................... 5461  July 2000
Miscellaneous Food Stores............................... 5499  July 2000
New Car Dealers......................................... 5511  July 2000
Gasoline Service Stations............................... 5541  January 2002
Boat Dealers............................................ 5551  January 2002
Recreational Vehicle Dealers............................ 5561  January 2002
Miscellaneous Retail.................................... 59    January 2001
Security Brokers, Dealers, and Investment Bankers....... 6211  January 2001
Investment Advice....................................... 6282  January 2003
Life Insurance Carriers................................. 6311  January 1999
Property and Casualty Insurance......................... 6331  July 1998
Insurance Agencies and Brokerages....................... 6412  January 2003
Operators and Lessors of Nonresidential Buildings....... 6512  January 1996
Real Estate Agents and Managers......................... 6531  January 1996
Prepackaged Software.................................... 7372  January 1998
Data Processing Services................................ 7374  January 2002
Home Health Care Services............................... 8082  January 1997
Legal Services.......................................... 8111  January 1997
Engineering Design, Analysis, and Consulting Services... 8711  January 1997
Architectural Design, Analysis, and Consulting Services. 8712  January 1997
Premiums for Property and Casualty Insurance............ 9331  July 1998

     Weights for most traditional commodity groupings of the PPI, as well
as all indexes (such as stage-of-processing indexes) calculated from
traditional commodity groupings, currently reflect 1992 values of shipments
as reported in the Census of Manufactures and other sources.  From January
1992 through December 1995, PPI weights were derived from 1987 shipment
values.  Industry indexes shown in table 4 are also now calculated with
1992 net output weights.  This periodic update of the value weights used to
calculate the PPI is done to more accurately reflect changes in production
and marketing patterns in the economy.

     Net output values of shipments are used as weights for industry
indexes. Net output values refer to the value of shipments from
establishments in one industry to establishments classified in another
industry.  However, weights for commodity price indexes are based on gross
shipment values, including shipment values between establishments within
the same industry. As a result, broad commodity grouping indexes such as
the all commodities index are affected by the multiple counting of price
change at successive stages of processing, which can lead to exaggerated or
misleading signals about inflation.  Stage-of-processing 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.

     Effective with publication of January 1988 data, many important PPI
series (including stage-of-processing groupings and most commodity groups
and individual items) were placed on a new reference base, 1982=100.  From
1971 through 1987, the standard reference base for most PPI series was
1967=100. Except for rounding differences, the shift to the new reference
base did not alter any changes to previously published percent changes for
affected PPI series. (See "Calculating Index Changes," below.) The new
reference base is not used for indexes with a base later than December
1981, nor for indexes for the net output of industries and their products.

     For further information on the underlying concepts and methodology of
the Producer Price Index, see chapter 14, "Producer Prices," in BLS
Handbook of Methods (April 1997), Bulletin 2490. Reprints are available
from the Bureau of Labor Statistics on request.

                         Calculating Index Changes

     Each index measures price changes from a reference period which equals
100.0 (1982 or some later month). An increase of 5.5 percent from the
reference period in the Finished Goods Price Index, for example, is shown
as 105.5.  This change can also be expressed in dollars as follows:
"Prices received by domestic producers of a systematic sample of finished
goods have risen from $100 in 1982 to $105.50 today." Likewise, a current
index of 90.0 would indicate that prices received by producers of finished
goods today are 10 percent lower than they were in 1982.

    Movements of price indexes from one month to another are usually
expressed as percent changes rather than as changes in index points because
index point changes are affected by the level of the index in relation to
its base period, whereas percent changes are not.  The example below shows
the computation of index point and percent changes.

     Index point change

     Finished Goods Price Index              107.5
     Less previous index                     104.0
     Equals index point change                 3.5

     Index percent change

     Index point change                        3.5
     Divided by the previous index           104.0
     Equals                                  0.034
     Result multiplied by 100          0.034 x 100
     Equals percent change                     3.4



                  Seasonally Adjusted and Unadjusted Data

     Because price data are used for different purposes by different
groups, the Bureau of Labor Statistics publishes seasonally adjusted and
unadjusted changes each month.  Seasonally adjusted data are preferred for
analyzing general price trends in the economy because they eliminate the
effect of changes that normally occur at about the same time and in about
the same magnitude every year--such as price movements resulting from
normal weather patterns, regular production and marketing cycles, model
changeovers, seasonal discounts, and holidays.  For these reasons,
seasonally adjusted data more clearly reveal underlying cyclical trends.

     Unadjusted data are of primary interest to users who need information
that can be related to actual dollar values of transactions.  Individuals
requiring this information include marketing specialists, purchasing
agents, budget and cost analysts, contract specialists, and commodity
traders.  It is the unadjusted data that are generally cited in escalating
long-term contracts such as purchasing agreements or real estate leases.
(See Escalation and Producer Price Indexes:  A Guide for Contracting
Parties, BLS Report 807, September 1991, available on request from BLS.)

     For more information, see (1) "Appendix A: Seasonal Adjustment
Methodology at BLS," in the BLS Handbook of Methods (April 1997), Bulletin
2490 and (2) "Summary of  Changes to the PPI's  Seasonal Adjustment
Methodology" in the January 1995 issue of Producer Price Indexes.