FOR DATA ONLY:  (202) 691-5200      USDL 03-720
FOR TECHNICAL INFORMATION:          TRANSMISSION OF MATERIAL IN
(202) 691-7705                      THIS RELEASE IS EMBARGOED
MEDIA CONTACT:  (202) 691-5902      UNTIL 8:30 A.M. (EST), FRIDAY,
http://www.bls.gov/ppi              NOVEMBER 14, 2003
                                     
                  Producer Price Indexes -- October 2003

     The Bureau of Labor Statistics of the U.S. Department of Labor
reported today that the seasonally adjusted Producer Price Index for
Finished Goods advanced 0.8 percent in October.  This gain followed a 0.3-
percent rise in September and a 0.4-percent increase in August.  Rising
prices for beef and veal, light motor trucks, and passenger cars led the
increase in the finished goods index in October.  At the earlier stages of
processing, prices received by the manufacturers of intermediate goods went
up 0.4 percent, after edging down 0.1 percent in the prior month.  The rate
of increase in the index for crude materials slowed from 3.4 percent in
September to 2.6 percent in October.  (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                                                   
   Oct.       0.8       0.4         3.4       0.3          0.7         0.7         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.       1.4        .2         5.4        .7          4.0         2.1        13.0
   Apr.      -1.7        .8        -8.1       -.7          2.4        -2.3       -15.8
   May        -.4        .1        -2.9        .1          2.5         -.7         1.4
   June      r .5        .3       r 2.9       -.1          2.9          .5       r 4.4
   July      r .2       -.2        r .7        .2          3.0        r .1      r -2.7
   Aug.        .4        .7         1.2        .1          3.4          .5        -1.4
   Sept.       .3       1.2          .1         0          3.5         -.1         3.4
   Oct.        .8       2.2         -.1        .5          3.4          .4         2.6
r=revised.  Some of the figures shown above and elsewhere in this release may differ 
from those previously reported because data for June 2003 have been revised to reflect
the availability of late reports and corrections by respondents.

                                    -2-
                                     
     Among finished goods, prices for finished consumer foods moved up 2.2
percent in October, compared with a 1.2-percent increase in the previous
month.  (Excluding beef and veal, the finished goods index would have risen
0.5 percent in October.)  The index for finished goods other than foods and
energy rose 0.5 percent, after showing no change in September.  (Excluding
passenger cars and light trucks, prices for finished goods other than foods
and energy would have risen 0.2 percent in October.)  By contrast, prices
for finished energy goods inched down 0.1 percent in October, following a
0.1-percent gain a month earlier.

     Before seasonal adjustment, the Producer Price Index for Finished
Goods increased 1.1 percent in October to 145.5 (1982=100).  From October
2002 to October 2003, prices for finished goods advanced 3.4 percent.  Over
the same period, the index for finished consumer foods rose 8.5 percent,
finished energy goods prices went up 9.2 percent, and the index for
finished goods other than foods and energy climbed 0.5 percent.  Prices for
intermediate goods moved up 3.4 percent, and the crude goods index jumped
22.8 percent.

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                                                           
  Oct.    -0.3      3.4      0.2        1.6      0.2       5.1      0.3      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     10.2       .4        8.0     -1.8      30.1      -.3      46.8
  Apr.      .1    -11.0      -.2        4.6      1.2     -30.7     -1.1      18.2
  May      1.1     -4.4        0        4.2      2.0       1.9      -.7      19.1
  June     1.8    r 2.9        0        4.5    r -.4    r 10.5    r -.1    r 29.1
  July     -.4     r .5      -.1        4.4   r -3.4    r -3.3     r .2      24.5
  Aug.      .2      2.4       .1        4.4      3.7      -7.4      3.7      20.9
  Sept.    2.3     -2.3       .1        3.7      7.0        .6      2.3      22.3
  Oct.     3.1       .6       .3        3.4      8.9      -3.6      3.1      22.8
r=revised.  Some of the figures shown above and elsewhere in this release may 
differ from those previously reported because data for June 2003 have been revised 
to reflect the availability of late reports and corrections by respondents.

                                    -3-

Finished goods

     Prices for finished consumer foods rose 2.2 percent in October,
compared with a 1.2-percent gain in the preceding month.  An 18.3-percent
upsurge in October's beef and veal index followed a 4.2-percent increase in
September and led the acceleration in the finished consumer foods index.
Prices for fresh fruits and melons, processed young chickens, shortening
and cooking oils, processed fruits and vegetables, and confectionery end
products turned up, following decreases in September.  On the other hand,
the fresh and dry vegetables index dropped 9.1 percent in October, after
advancing 20.7 percent in the previous month.  The finfish and shellfish
index also turned down, following a gain in the prior month.  Prices for
dairy products, pork, soft drinks, and eggs for fresh use grew at slower
rates than they did in September.

     Prices for finished consumer goods other than foods and energy
advanced 0.6 percent in October, after inching up 0.1 percent in the
previous month.  The index for light motor trucks increased 3.4 percent,
compared with a 0.1-percent gain in September.  For the 12 months ended in
October 2003, light motor truck prices increased 1.7 percent.  The
passenger car index advanced 1.6 percent in October, following a 0.5-
percent decline in September.  From October 2002 to October 2003, prices
for passenger cars fell 0.4 percent.  In accordance with usual practice,
most new model year passenger cars and light trucks were introduced into
the PPI in October.  (See Report on Quality Changes for 2004 Model
Vehicles, USDL 03-721.)  Prices for book publishing, men's and boys'
apparel, and floor coverings turned up, after falling a month earlier.  The
indexes for cigarettes and newspaper circulation moved up at a faster pace
than they did in the preceding month.  Alternatively, prices for soaps and
synthetic detergents fell 0.2 percent in October, following a 0.6-percent
increase in the prior month.  Prices for toys, games, and children's
vehicles also declined, after rising a month earlier.  The indexes for
pharmaceutical preparations and mobile homes rose less than they did in
September.

     The capital equipment index climbed 0.6 percent in October, compared
with a 0.1-percent decline in the previous month.  Prices for light motor
trucks, passenger cars, and communication and related equipment accounted
for most of this upturn.  The rate of increase in prices for light motor
trucks rose from 0.1 percent in September to 3.4 percent in October.  The
indexes for passenger cars, communication and related equipment, and pumps
and compressors turned up, following decreases a month earlier.
Agricultural machinery and equipment prices advanced at a quicker rate in
October than they did in the prior month.  The index for heavy motor trucks
went up, after showing no change in September.  Conversely, prices for
integrating and measuring instruments, electronic computers, and metal
cutting machine tools fell, after showing no change in the preceding month.
The index for civilian aircraft rose less in October than it did in the
prior month, while prices for x-ray and electromedical equipment moved down
at a faster pace than they did in September.

     The index for finished energy goods edged down 0.1 percent in October,
after increasing by the same magnitude a month earlier.  Prices for
gasoline fell 3.0 percent, following a 2.2-percent rise in September.  The
index for residential natural gas also turned down, after moving up in the
previous month.  On the other hand, prices for home heating oil rebounded
9.6 percent in October, compared with a 14.3-percent drop in the prior
month.  The indexes for liquefied petroleum gas, diesel fuel, and kerosene
also turned up, after falling in the preceding month.  Residential electric
power prices advanced more in October than they did a month earlier.

                                    -4-
                                     
Intermediate goods

     The Producer Price Index for Intermediate Materials, Supplies, and
Components increased 0.4 percent in October, compared with a 0.1-percent
decrease in September.  Prices for intermediate energy goods and materials
for nondurable manufacturing turned up in October, following declines in
the preceding month, while the index for intermediate foods and feeds went
up at a faster rate than it did in September.  On the other hand, prices
for materials and components for construction and for materials for durable
manufacturing rose more slowly in October than they did a month earlier.
Excluding foods and energy, intermediate goods prices climbed 0.3 percent,
after inching up 0.1 percent in the prior month.  (See table B.)

     The index for intermediate energy goods advanced 0.6 percent in
October, following a 2.3-percent decrease in September.  Contributing
heavily to this reversal, prices for diesel fuel jumped 18.4 percent,
following a 17.0-percent drop in the previous month, and the index for jet
fuels increased 8.6 percent, after falling 17.4 percent a month earlier.
The indexes for home heating oil and liquefied petroleum gas also turned up
in October.  Prices for industrial electric power and commercial electric
power rose more quickly than they did in September, while the index for
residual fuels declined at a slower pace in October than it did in the
preceding month.  By contrast, gasoline prices fell 3.0 percent, compared
with a 2.2-percent gain in September.  The index for commercial natural gas
also moved down in October, after rising in the prior month.  Prices for
industrial natural gas and natural gas to electric utilities decreased more
than they did in September.

     The index for materials for nondurable manufacturing climbed 0.7
percent in October, after posting a 1.2-percent decline a month earlier.
Prices for primary basic organic chemicals advanced 2.4 percent, after
falling 0.8 percent in September.  The indexes for gray fabrics, inedible
fats and oils, and woodpulp also moved up, following decreases in the
preceding month.  Paperboard prices went down at a slower rate in October
than they did in September.  The index for plastic resins and materials
rose at a quicker pace than it did in the previous month.  On the other
hand, prices for intermediate basic organic chemicals moved down 0.5
percent, compared with a 2.7-percent gain in the prior month.  The indexes
for basic inorganic chemicals and nitrogenates increased less in October
than they did in the prior month, while paper prices fell more than they
did in September.

     Subsequent to a 2.3-percent advance in September, the index for
intermediate foods and feeds moved up 3.1 percent in October.   Price
increases for beef and veal led this acceleration, rising 18.3 percent in
October after posting a 4.2-percent increase a month earlier.  The indexes
for shortening and cooking oils, refined sugar and sugar byproducts,
processed young chickens, and for natural, processed, and imitation cheese
turned up in October.  By contrast, prices for prepared animal feeds rose
1.1 percent, after registering a 4.4-percent gain in the preceding month.
The index for fluid milk products also advanced less in October than it did
in September.  Prices for crude vegetable oils fell more in October than
they did in the previous month, and the index for confectionery materials
turned down, after rising in September.

     Prices for materials and components for construction went up 0.3
percent in October, following a 0.9-percent rise a month earlier.  The
plywood index climbed 5.4 percent, compared with a 17.1-percent advance in
the prior month.  Price increases for millwork and for prefabricated wood
buildings and components also slowed in October.  The indexes for softwood
lumber, hardwood lumber, treated wood, and gypsum products fell, after
moving up in September.  Prices for paving mixtures and blocks declined at
a quicker rate in October than they did in the previous month.  On the
other hand, the index for concrete products edged up 0.1 percent, following
a 0.4-percent decrease in September.  Prices for wiring devices also turned
up.  The indexes for steel mill products and plastic construction products
rose at a quicker pace in October than they did a month earlier.

                                    -5-
                                     
     Prices for materials for durable manufacturing advanced 0.6 percent in
October, after posting a 0.9-percent increase in September.  The indexes
for plywood, building paper and board, and cold-rolled steel sheet and
strip rose less than they did in the preceding month.  Prices for refined
gold, refined silver, industrial and other fabricated textile products,
hardwood lumber, and for adhesives and sealants moved down in October,
following gains a month earlier.  Conversely, the index for primary
aluminum (except extrusion billet) jumped 4.5 percent, compared with a 1.4-
percent decline in September.  Prices for semifinished steel mill products
and prepared paint also turned up in October.  The indexes for hot-rolled
bars, plates, and structural shapes; hot-rolled steel sheet and strip; and
copper cathode and refined copper advanced more than they did in the prior
month.

  Crude goods

     The rate of increase for the Producer Price Index for Crude Materials
for Further Processing slowed from 3.4 percent in September to 2.6 percent
in October.  Rising prices for crude foodstuffs and feedstuffs and for
crude nonfood materials less energy outweighed price declines for crude
energy materials.  (See table B.)

     The index for crude foodstuffs and feedstuffs climbed 8.9 percent in
October, after increasing 7.0 percent in September.  Prices for slaughter
cattle jumped 20.4 percent, compared with an 11.0-percent gain in the prior
month.  Fluid milk prices also rose more rapidly in October than they did
in the previous month.  The indexes for slaughter broilers and fryers and
for fresh fruits and melons turned up in October, after falling a month
earlier.  On the other hand, the corn index dropped 12.2 percent, following
a 12.8-percent increase in September.  Prices for fresh and dry vegetables
and slaughter hogs also turned down, after advancing in the prior month.
The index for slaughter turkeys rose at a slower pace in October than it
did in September.

     Prices for basic industrial materials moved up 3.1 percent, following
a 2.3-percent rise in September.  The raw cotton index jumped 23.5 percent
in October, after posting a 5.6-percent gain a month earlier.  The indexes
for copper base scrap, wastepaper, and for hides and skins increased at
faster rates in October than they did in September.  Prices for aluminum
base scrap turned up, following declines in the previous month.  By
contrast, prices for gold ores turned down 0.6 percent, after advancing 6.7
percent in the prior month.  The indexes for construction sand, gravel, and
crushed stone and for iron and steel scrap rose less quickly from September
to October.  Prices for hardwood logs, bolts, and timber declined, after
showing no change in September.
     
     Subsequent to a 0.6-percent gain in September, the index for crude
energy materials moved down 3.6 percent in October.  Natural gas prices
decreased 9.4 percent in October, following a 5.4-percent rise in the prior
month.  The coal index exhibited a slower rate of increase, climbing 0.8
percent in October after advancing 1.4 percent a month earlier.
Alternatively, crude petroleum prices turned up 6.8 percent, following an
8.4-percent drop in September.

                                    -6-

Net output price indexes for mining, manufacturing, and services industries

Mining.  The Producer Price Index for the Net Output of Total Mining
Industries fell 2.4 percent in October, after rising 0.8 percent in
September.  (Net output price indexes are not seasonally adjusted.)
Leading this reversal, prices received by the natural gas liquids and
natural gas residue industry turned down 6.5 percent, following a 3.3-
percent increase in the preceding month.  The index for the crude petroleum
and natural gas industry declined more rapidly in October than it did in
September.  Prices received by the gold ores industry moved down, after
advancing a month earlier.  The index for the crushed and broken limestone
industry rose at a slower rate in October than it did in the prior month.
Alternatively, prices for the oil and gas well drilling industry turned up
0.8 percent, after declining 1.2 percent in September.  The industry index
for bituminous coal underground mining increased more quickly in October
than it did in September.  In October, the Producer Price Index for Total
Mining Industries was 123.2 (December 1984=100), 17.9 percent above its
year-ago level.

Manufacturing.  The Producer Price Index for the Net Output of Total
Manufacturing Industries climbed 0.9 percent in October, after increasing
0.1 percent in September.  The industry group index for transportation
equipment advanced 3.6 percent, following a 0.4-percent drop in the
previous month.  Prices received by the food and kindred products industry
group rose more in October than they did a month earlier.  The index for
the petroleum refining and related products industry group fell at a slower
pace in October than it did in September.  Prices for the chemicals and
allied products industry group edged up, after showing no change in the
preceding month.  On the other hand, the industry group index for lumber
and wood products (except furniture) increased 0.4 percent in October,
following a 3.7-percent gain in September.  Prices received by the industry
group for fabricated metal products (except machinery and transportation
equipment) rose slightly less than they did in the prior month.  The index
for the stone, clay, glass, and concrete products industry group inched
down in October, after increasing in September.  In October, the Producer
Price Index for Total Manufacturing Industries was 138.3 (December
1984=100), 2.0 percent above its year-ago level.

Services.  Among service industries, prices received by the industries for
general medical and surgical hospitals, hotels and motels, television
broadcasting, investment advice, scheduled air transportation, property and
casualty insurance, and for skilled and intermediate care facilities
increased in October.  By contrast, the industry indexes for security
brokers, dealers, and investment banking companies; prepackaged software;
telephone communications (except radiotelephone); life insurance carriers;
legal services; and wireless communications declined during the same
period.

                                   *****
            Producer Price Index data for November 2003 will be
        released on Friday, December 12, 2003, at 8:30 a.m. (EST).

                             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.  A concordance between the two structures is
available at http://www.bls.gov/ppi/ppinaicstosic.htm through a World Wide
Web site.
     
     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|                       |Oct. 2003 from:|                          
                                                 |          |_______________________|_______________|__________________________
                                                 |   Dec.   |       |       |       |       |       |       |         |        
                                                 |          |June   |Sept.  |Oct.   |  Oct. | Sept. |July to|Aug.  to |Sept. to
                                                 |   2002 1/|2003 2/|2003 2/|2003 2/|  2002 | 2003  |  Aug. |   Sept. |  Oct.  
_________________________________________________|__________|_______|_______|_______|_______|_______|_______|_________|________
                                                 |                                                                             
Finished goods...................................|  100.000   143.0   143.9   145.5     3.4    1.1      0.4      0.3     0.8   
  Finished consumer goods........................|   73.339   145.0   146.3   147.7     4.3    1.0       .6       .3     1.0   
    Finished consumer foods......................|   20.672   145.2   147.9   151.0     8.5    2.1       .7      1.2     2.2   
      Crude......................................|    1.333   121.5   136.8   135.0     9.0   -1.3      5.6      5.5    -2.2   
      Processed..................................|   19.339   147.2   148.8   152.3     8.5    2.4       .3       .8     2.6   
    Finished consumer goods, excluding foods.....|   52.667   144.6   145.3   146.1     2.7     .6       .5       .1      .3   
      Nondurable goods less foods................|   36.364   148.9   150.2   149.2     3.8    -.7       .5       .1      .1   
      Durable goods..............................|   16.303   131.8   131.1   135.5      .5    3.4       .2      -.1     1.1   
  Capital equipment..............................|   26.661   138.9   139.1   141.1      .9    1.4       .1      -.1      .6   
    Manufacturing industries.....................|    7.839   139.7   140.4   140.9      .6     .4       .1      0        .1   
    Nonmanufacturing industries..................|   18.822   138.5   138.5   141.1     1.0    1.9       .1      -.1      .7   
                                                 |                                                                             
Intermediate materials, supplies, and components.|  100.000   133.5   134.1   134.1     3.4    0         .5      -.1      .4   
  Materials and components for manufacturing.....|   46.896   129.6   129.8   130.5     2.4     .5       .5      -.2      .5   
    Materials for food manufacturing.............|    2.918   134.2   137.1   142.0    14.2    3.6      1.3      1.2     3.8   
    Materials for nondurable manufacturing.......|   14.707   137.4   136.3   137.1     3.2     .6      1.1     -1.2      .7   
    Materials for durable manufacturing..........|    9.136   126.8   128.9   129.6     2.9     .5       .6       .9      .6   
    Components for manufacturing.................|   20.136   126.0   125.9   125.8     0      -.1      -.1      0       -.1   
  Materials and components for construction......|   12.772   153.0   155.1   155.2     2.3     .1       .1       .9      .3   
  Processed fuels and lubricants.................|   16.110   112.1   113.3   111.9    10.1   -1.2      2.0     -1.6      .5   
    Manufacturing industries ....................|    6.430   117.0   117.4   115.5    13.2   -1.6      1.8     -1.3     -.8   
    Nonmanufacturing industries..................|    9.680   109.1   110.7   109.7     8.1    -.9      2.0     -1.7     1.5   
  Containers.....................................|    3.248   154.1   153.6   153.2     -.1    -.3      -.1      0       -.3   
  Supplies.......................................|   20.974   141.5   141.7   141.8     1.6     .1      -.1       .2      .1   
    Manufacturing industries.....................|    4.589   146.7   146.7   146.6     1.2    -.1      0        -.2     0     
    Nonmanufacturing industries..................|   16.385   139.0   139.2   139.5     1.8     .2      -.2       .3      .2   
      Feeds......................................|    1.097   104.5   107.4   108.7     6.8    1.2     -2.8      5.5     1.2   
      Other supplies.............................|   15.288   143.3   143.3   143.4     1.4     .1      -.1      0        .1   
                                                 |                                                                             
Crude materials for further processing...........|  100.000   136.5   135.6   138.3    22.8    2.0     -1.4      3.4     2.6   
  Foodstuffs and feedstuffs......................|   38.685   110.4   118.7   127.9    28.0    7.8      3.7      7.0     8.9   
  Nonfood materials..............................|   61.315   152.8   144.5   141.9    19.2   -1.8     -4.2      1.1    -1.5   
    Nonfood materials except fuel 3/.............|   33.142   113.8   114.6   119.1    10.8    3.9      2.7     -2.1     4.5   
      Manufacturing 3/...........................|   32.295   104.6   105.3   109.5    11.1    4.0      2.8     -2.1     4.5   
      Construction...............................|    0.847   179.0   181.3   182.6     -.2     .7      1.0       .9      .8   
    Crude fuel 4/................................|   28.173   203.0   180.1   165.8    31.6   -7.9    -11.2      4.8    -7.9   
      Manufacturing industries...................|    2.540   192.4   171.3   158.2    30.4   -7.6    -10.8      4.7    -7.6   
      Nonmanufacturing industries................|   25.633   207.6   184.1   169.5    31.7   -7.9    -11.2      4.8    -7.9   
                                                 |                                                                             
               Special groupings                 |                                                                             
                                                 |                                                                             
Finished goods, excluding foods..................|5/ 79.328   142.2   142.6   143.8     2.1     .8       .4      0        .4   
Intermediate materials less foods and feeds......|6/ 95.985   134.0   134.5   134.4     3.1    -.1       .6      -.3      .3   
Intermediate foods and feeds.....................|6/  4.015   125.1   128.0   131.7    12.2    2.9       .2      2.3     3.1   
Crude materials less agricultural products 3/ 7/.|8/ 59.316   155.8   146.4   143.2    19.0   -2.2     -4.6      1.0    -2.0   
                                                 |                                                                             
Finished energy goods............................|5/ 14.951   103.1   105.0   103.2     9.2   -1.7      1.2       .1     -.1   
Finished goods less energy.......................|5/ 85.049   148.3   149.0   151.4     2.4    1.6       .3       .3     1.0   
Finished consumer goods less energy..............|5/ 58.388   152.4   153.3   155.9     3.0    1.7       .3       .5     1.2   
                                                 |                                                                             
Finished goods less foods and energy.............|5/ 64.377   149.8   149.7   152.0      .5    1.5       .1      0        .5   
Finished consumer goods less foods and energy....|5/ 37.716   157.1   156.9   159.2      .1    1.5       .1       .1      .6   
Consumer nondurable goods less foods and energy..|5/ 21.413   177.7   177.8   178.1     -.2     .2       .1       .1      .2   
                                                 |                                                                             
Intermediate energy goods........................|6/ 16.468   111.3   112.4   111.1     9.4   -1.2      2.4     -2.3      .6   
Intermediate materials less energy...............|6/ 83.532   137.6   138.0   138.5     2.3     .4       .1       .3      .4   
Intermediate materials less foods and energy.....|6/ 79.517   138.4   138.8   139.0     1.8     .1       .1       .1      .3   
                                                 |                                                                             
Crude energy materials 3/........................|8/ 41.909   156.2   140.7   135.7    21.9   -3.6     -7.4       .6    -3.6   
Crude materials less energy......................|8/ 58.093   119.4   127.9   135.5    23.3    5.9      3.7      5.5     7.0   
Crude nonfood materials less energy 4/...........|8/ 19.406   146.3   155.5   158.8    14.0    2.1      3.7      2.3     3.1   
                                                 |                                                                             
_______________________________________________________________________________________________________________________________
                                                                                                                               
  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 June 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 |                                                       |                       |Oct. 2003 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to  
           |                                                       |2003 1/|2003 1/|2003 1/| 2002  | 2003  |  Aug. |  Sept.|  Oct.   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           |FINISHED GOODS.........................................| 143.0   143.9   145.5     3.4    1.1      0.4     0.3     0.8   
           | FINISHED CONSUMER GOODS...............................| 145.0   146.3   147.7     4.3    1.0       .6      .3     1.0   
           |  FINISHED CONSUMER FOODS..............................| 145.2   147.9   151.0     8.5    2.1       .7     1.2     2.2   
           |                                                       |                                                                 
01-11      |   Fresh fruits and melons 2/..........................|  79.3    82.7    88.9    -6.1    7.5      7.1    -1.9     7.5   
01-13      |   Fresh and dry vegetables 2/.........................| 125.5   151.6   137.8    14.9   -9.1      4.3    20.7    -9.1   
01-71-07   |   Eggs for fresh use (Dec. 1991=100)..................|  95.6   111.1   119.3    61.0    7.4      3.2     5.2     4.3   
02-11      |   Bakery products 2/..................................| 195.0   195.4   195.6     2.5     .1      -.1      .2      .1   
02-13      |   Milled rice 2/......................................|  98.9   111.9   115.3    38.4    3.0      4.7     5.7     3.0   
02-14-02   |   Pasta products (June 1985=100) 2/...................| 126.7   127.0   126.8     4.4    -.2      0        .4     -.2   
02-21-01   |   Beef and veal 2/....................................| 139.1   141.3   167.2    52.6   18.3      3.8     4.2    18.3   
02-21-04   |   Pork................................................| 124.5   116.8   120.7    13.4    3.3     -3.7     4.6     4.2   
02-22-03   |   Processed young chickens............................| 118.9   124.9   126.1    19.6    1.0      -.3    -1.6     3.2   
02-22-06   |   Processed turkeys...................................|  90.2    93.6    94.9     1.2    1.4      -.7     2.0     1.1   
02-23      |   Finfish and shellfish...............................| 196.0   195.7   190.2    -7.0   -2.8       .8      .5    -2.9   
02-3       |   Dairy products......................................| 134.3   147.5   147.6     8.8     .1      2.4     2.0      .3   
02-4       |   Processed fruits and vegetables 2/..................| 133.6   132.8   133.5      .2     .5      -.4     -.2      .5   
02-55      |   Confectionery end products 2/.......................| 183.4   183.9   184.9     5.8     .5      0       -.1      .5   
02-62      |   Soft drinks.........................................| 152.9   152.5   152.9     1.3     .3      -.3      .4      .3   
02-63-01   |   Roasted coffee 2/...................................| 127.7   127.7   127.9     5.4     .2       .1     -.1      .2   
02-78      |   Shortening and cooking oils 2/......................| 159.0   156.7   171.3    15.7    9.3       .5    -1.8     9.3   
           |                                                       |                                                                 
           |  FINISHED CONSUMER GOODS EXCLUDING FOODS..............| 144.6   145.3   146.1     2.7     .6       .5      .1      .3   
           |                                                       |                                                                 
02-61      |   Alcoholic beverages.................................| 148.9   148.3   148.6     1.0     .2      -.2     -.1     -.1   
03-81-01   |   Women's apparel 2/..................................| 124.4   122.3   122.7     -.2     .3       .1     0        .3   
03-81-02   |   Men's and boys' apparel 2/..........................| 126.6   126.8   127.5     -.7     .6       .4     -.1      .6   
03-81-03   |   Girls', children's, and infants' apparel 2/.........| 119.5   120.2   120.2      .7    0         .5     -.3     0     
03-82      |   Textile housefurnishings 2/.........................| 122.4   122.2   122.2     0      0         .6      .1     0     
04-3       |   Footwear 2/.........................................| 148.0   147.5   148.0     1.3     .3      0       -.1      .3   
05-41      |   Residential electric power (Dec. 1990=100)..........| 122.4   124.1   121.7     5.3   -1.9       .5      .1      .8   
05-51      |   Residential gas (Dec. 1990=100).....................| 174.5   170.2   169.0    24.9    -.7     -1.5     1.6    -1.8   
05-71      |   Gasoline............................................|  99.4   109.9   103.1     3.7   -6.2      6.3     2.2    -3.0   
05-73-02-01|   Fuel oil No. 2......................................|  84.4    85.1    94.1     3.2   10.6      1.6   -14.3     9.6   
06-38      |   Pharmaceutical preparations (June 2001=100) 2/......| 107.1   108.2   108.4     4.1     .2       .3      .4      .2   
06-71      |   Soaps and synthetic detergents 2/...................| 129.6   130.9   130.7      .3    -.2      0        .6     -.2   
06-75      |   Cosmetics and other toilet preparations 2/..........| 140.5   140.5   140.6      .7     .1      0        .1      .1   
07-12      |   Tires, tubes, tread, etc 2/.........................|  97.5    98.3    98.9     3.8     .6      -.1      .3      .6   
09-15-01   |   Sanitary papers and health products 2/..............| 150.3   150.3   150.3     1.0    0         .2      .1     0     
09-31-01   |   Newspaper circulation 2/............................| 229.9   230.3   232.5     2.4    1.0      0        .2     1.0   
09-32-01   |   Periodical circulation..............................| 220.6   220.1   220.1     4.0    0        -.3     -.1      .5   
09-33      |   Book publishing.....................................| 242.9   243.5   244.9     3.3     .6       .2     -.7      .4   
12-1       |   Household furniture.................................| 158.3   158.0   158.4      .4     .3       .1     -.1      .1   
12-3       |   Floor coverings 2/..................................| 134.6   134.0   135.1     3.1     .8      -.1     -.5      .8   
12-4       |   Household appliances 2/.............................| 102.3   101.7   102.1    -2.4     .4      -.3     -.1      .4   
12-5       |   Home electronic equipment 2/........................|  67.6    66.9    67.1    -2.2     .3      0       -.1      .3   
12-62      |   Household glassware.................................| 169.0   167.8   169.1     -.4     .8       .1     -.7      .5   
12-64      |   Household flatware 2/...............................| 145.2   145.2   145.2     0      0        0       0       0     
12-66      |   Lawn and garden equip., ex. tractors 2/.............| 133.8   131.9   132.3    -1.1     .3     -1.5     -.1      .3   
14-11-01   |   Passenger cars......................................| 127.4   125.1   133.8     -.4    7.0       .3     -.5     1.6   
15-11      |   Toys, games, and children's vehicles 2/.............| 125.0   125.1   124.5     -.3    -.5      0        .1     -.5   
15-12      |   Sporting and athletic goods 2/......................| 124.9   123.4   123.6    -1.4     .2      -.4     -.6      .2   
15-2       |   Tobacco products 2/.................................| 429.4   430.3   432.5    -7.4     .5      0        .1      .5   
15-5       |   Mobile homes 2/.....................................| 169.0   171.4   172.4     3.2     .6       .3     1.0      .6   
15-94-02   |   Jewelry, platinum, & karat gold 2/..................| 131.9   132.2   132.7     2.0     .4       .1      .5      .4   
15-94-04   |   Costume jewelry and novelties 2/....................| 144.8   144.8   144.8      .3    0         .3     0       0     
           |                                                       |                                                                 
           | CAPITAL EQUIPMENT.....................................| 138.9   139.1   141.1      .9    1.4       .1     -.1      .6   
           |                                                       |                                                                 
11-1       |   Agricultural machinery and equipment 2/.............| 160.3   160.2   161.9     1.7    1.1      -.3      .1     1.1   
11-2       |   Construction machinery and equipment................| 153.5   153.8   153.8     1.5    0         .1      .1      .1   
11-37      |   Metal cutting machine tools 2/......................| 150.6   150.5   148.4    -1.9   -1.4       .1     0      -1.4   
11-38      |   Metal forming machine tools 2/......................| 167.3   167.9   167.9      .4    0        0        .1     0     
11-39      |   Tools, dies, jigs, fixtures, and ind. molds 2/......| 139.3   139.6   139.7     -.6     .1      0        .3      .1   
11-41      |   Pumps, compressors, and equipment...................| 162.8   163.3   163.7     1.4     .2       .4     -.2      .6   
11-44      |   Industrial material handling equipment 2/...........| 138.1   138.2   138.3      .9     .1      -.1     0        .1   
11-51      |   Electronic computers (Dec. 1998=100) 2/.............|  34.5    33.4    32.8   -17.6   -1.8     -1.5     0      -1.8   
11-62      |   Textile machinery 2/................................| 157.9   158.1   158.0      .6    -.1      0        .1     -.1   
11-64      |   Paper industries machinery (June 1982=100)..........| 170.3   170.3   170.3      .4    0         .1      .1     0     
11-65      |   Printing trades machinery 2/........................| 142.9   142.6   143.3     -.6     .5      -.3     -.4      .5   
11-74      |   Transformers and power regulators 2/................| 131.4   132.3   132.2      .6    -.1      0       0       -.1   
11-76      |   Communication & related equip. (Dec. 1985=100) 2/...| 105.7   104.9   105.5    -1.1     .6      -.9     -.6      .6   
11-79-05   |   X-ray and electromedical equipment 2/...............| 101.0   100.3    99.7    -1.2    -.6      -.3     -.2     -.6   
11-91      |   Oil field and gas field machinery ..................| 139.9   140.1   140.5     3.3     .3       .2      .1      .1   
11-92      |   Mining machinery and equipment 2/...................| 154.7   154.8   155.1     1.5     .2      0        .1      .2   
11-93      |   Office and store machines and equipment 2/..........| 111.9   114.1   113.2      .8    -.8       .1     -.1     -.8   
12-2       |   Commercial furniture 2/.............................| 162.5   162.7   163.1      .8     .2       .1      .1      .2   
14-11-05   |   Light motor trucks..................................| 145.0   144.0   157.6     1.7    9.4       .8      .1     3.4   
14-11-06   |   Heavy motor trucks 2/...............................| 155.1   154.3   155.1     1.4     .5      -.1     0        .5   
14-14      |   Truck trailers 2/...................................| 139.6   139.5   139.5      .9    0         .1     0       0     
14-21-02   |   Civilian aircraft (Dec. 1985=100)...................| 178.9   184.2   184.5     6.5     .2      1.3      .2      .1   
14-31      |   Ships (Dec. 1985=100) 2/............................| 158.2   159.3   159.0     5.1    -.2      0        .7     -.2   
14-4       |   Railroad equipment 2/...............................| 136.3   136.9   136.9     1.8    0        -.9      .3     0     
           |                                                       |                                                                 
           |INTERMEDIATE MATERIALS, SUPPLIES, AND COMPONENTS.......| 133.5   134.1   134.1     3.4    0         .5     -.1      .4   
           |                                                       |                                                                 
           | INTERMEDIATE FOODS AND FEEDS..........................| 125.1   128.0   131.7    12.2    2.9       .2     2.3     3.1   
           |                                                       |                                                                 
02-12-03   |   Flour 2/............................................| 124.5   122.9   119.2    -5.4   -3.0      1.1    -1.4    -3.0   
02-53      |   Refined sugar and byproducts 2/.....................| 122.7   120.6   122.7     3.0    1.7       .2    -2.1     1.7   
02-54      |   Confectionery materials 2/..........................| 124.4   125.1   121.6    -2.0   -2.8      -.4      .8    -2.8   
02-72      |   Crude vegetable oils 2/.............................| 139.5   138.8   122.9    22.4  -11.5      3.6    -2.7   -11.5   
02-9       |   Prepared animal feeds 2/............................| 111.1   113.6   114.8     5.8    1.1     -2.3     4.4     1.1   
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS...........| 134.0   134.5   134.4     3.1    -.1       .6     -.3      .3   
           |                                                       |                                                                 
03-1       |   Synthetic fibers 2/.................................| 106.9   106.4   106.0     -.3    -.4       .2     -.5     -.4   
03-2       |   Processed yarns and threads 2/......................| 103.6   103.5   103.4      .9    -.1       .4     -.2     -.1   
03-3       |   Gray fabrics 2/.....................................| 110.2   110.1   111.6     -.3    1.4      -.5     -.5     1.4   
03-4       |   Finished fabrics....................................| 120.6   121.1   121.1     -.2    0         .7     -.2     -.2   
03-83-03   |   Industrial textile products 2/......................| 130.9   130.9   130.4     -.3    -.4      -.3      .2     -.4   
04-2       |   Leather 2/..........................................| 212.6   213.4   216.1     4.7    1.3      0        .8     1.3   
05-32      |   Liquefied petroleum gas 2/..........................| 145.6   138.1   147.2    13.4    6.6      -.1    -3.3     6.6   
____________________________________________________________________________________________________________________________________ 
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 |                                                       |                       |Oct. 2003 from:|                         
   code    |                      Grouping                         |_______________________|_______________|________________________ 
           |                                                       |       |       |       |       |       |       |       |         
           |                                                       |June   |Sept.  |Oct.   | Oct.  | Sept. |July to|Aug. to|Sept.to  
           |                                                       |2003 1/|2003 1/|2003 1/| 2002  | 2003  |  Aug. |  Sept.|  Oct.   
___________|_______________________________________________________|_______|_______|_______|_______|_______|_______|_______|________ 
           |                                                       |                                                                 
           | INTERMEDIATE MATERIALS LESS FOODS AND FEEDS           |                                                                 
           |   -Continued..........................................|                                                                 
05-42      |   Commercial electric power...........................| 143.2   149.0   145.5     6.5   -2.3      1.0     2.2     2.7   
05-43      |   Industrial electric power...........................| 148.3   152.2   148.9     6.4   -2.2       .6      .3     1.1   
05-52      |   Commercial natural gas (Dec. 1990=100)..............| 177.2   172.7   170.0    24.8   -1.6      0        .3    -3.1   
05-53      |   Industrial natural gas (Dec. 1990=100)..............| 185.5   177.6   175.6    27.7   -1.1      2.2     -.8    -3.2   
05-54      |   Natural gas to electric utilities (Dec. 1990=100)...| 152.3   140.9   139.8    26.3    -.8      7.8     -.5    -6.2   
05-72-03   |   Jet fuels...........................................|  80.5    74.6    77.7   -10.8    4.2       .2   -17.4     8.6   
05-73-03   |   No. 2 Diesel fuel...................................|  89.8    91.1   101.1     2.4   11.0      2.7   -17.0    18.4   
05-74      |   Residual fuel 2/....................................|  90.9   103.3    96.0     3.8   -7.1      5.3   -15.0    -7.1   
06-1       |   Industrial chemicals 2/.............................| 142.0   139.5   140.8     6.2     .9      1.3    -1.2      .9   
06-21      |   Prepared paint......................................| 170.7   171.4   171.5     2.6     .1       .1     -.2      .2   
06-22      |   Paint materials 2/..................................| 174.0   172.9   172.7      .8    -.1      -.2     -.3     -.1   
06-31      |   Medicinal and botanical chemicals 2/................| 135.4   135.1   135.2     1.7     .1       .2     -.1      .1   
06-4       |   Fats and oils, inedible.............................| 120.9   112.6   127.8    34.0   13.5     -3.6    -4.2    15.9   
06-51      |   Mixed fertilizers...................................| 119.9   120.1   120.4     5.4     .2       .3      .5      .7   
06-52-01   |   Nitrogenates........................................| 147.3   147.5   149.7    39.1    1.5      3.8     2.2     1.4   
06-52-02   |   Phosphates 2/.......................................| 108.8   110.3   110.0     8.7    -.3      2.5     -.3     -.3   
06-53      |   Other agricultural chemicals 2/.....................| 148.5   148.2   149.3     1.3     .7      0       -.2      .7   
06-6       |   Plastic resins and materials........................| 149.2   144.8   145.4     5.2     .4     -1.2      .6      .9   
07-11-02   |   Synthetic rubber 2/.................................| 126.2   127.9   128.2     4.9     .2      -.5      .2      .2   
07-21      |   Plastic construction products ......................| 139.5   137.8   138.6     0       .6      -.2      .7     1.5   
07-22      |   Unsupported plastic film, sheet, & other shapes 2/..| 142.7   143.8   141.4     2.4   -1.7       .4    -1.0    -1.7   
07-26      |   Plastic parts and components for manufacturing 2/...| 116.2   116.2   116.2     -.3    0        0       0       0     
08-11      |   Softwood lumber.....................................| 164.9   184.5   178.1     7.2   -3.5       .4    10.2    -1.9   
08-12      |   Hardwood lumber ....................................| 190.0   193.1   193.4     7.7     .2       .3      .5     -.2   
08-2       |   Millwork............................................| 181.3   183.6   183.6     1.9    0         .1      .8      .2   
08-3       |   Plywood 2/..........................................| 148.9   193.4   203.9    36.6    5.4      1.9    17.1     5.4   
09-11      |   Woodpulp 2/.........................................| 125.2   121.0   123.3     3.1    1.9     -1.0    -2.0     1.9   
09-13      |   Paper 2/............................................| 146.6   146.2   145.6     -.3    -.4      -.3     -.1     -.4   
09-14      |   Paperboard 2/.......................................| 163.4   160.1   160.0    -4.2    -.1      0      -1.4     -.1   
09-15-03   |   Paper boxes and containers 2/.......................| 173.3   172.7   171.7    -1.5    -.6      -.1      .1     -.6   
09-2       |   Building paper and board 2/.........................| 146.3   187.5   195.3    50.5    4.2      3.0    10.8     4.2   
09-37      |   Commercial printing (June 1982=100) 2/..............| 158.5   158.5   158.5     1.0    0         .4     -.1     0     
10-15      |   Foundry and forge shop products.....................| 137.4   137.6   137.7      .4     .1      0       0        .1   
10-17      |   Steel mill products.................................| 108.8   108.9   110.0     -.4    1.0       .6      .1     1.4   
10-22      |   Primary nonferrous metals 2/........................| 101.1   105.7   108.8    12.3    2.9      1.9      .6     2.9   
10-25-01   |   Aluminum mill shapes 2/.............................| 143.6   142.4   142.2     -.6    -.1      -.1     -.8     -.1   
10-25-02   |   Copper and brass mill shapes 2/.....................| 149.2   154.7   156.9     9.1    1.4       .9      .8     1.4   
10-26      |   Nonferrous wire and cable 2/........................| 135.1   135.4   135.5     2.2     .1       .2      .1      .1   
10-3       |   Metal containers 2/.................................| 109.0   109.2   109.4     1.1     .2      0        .1      .2   
10-4       |   Hardware 2/.........................................| 156.4   156.1   156.4      .4     .2      -.1     0        .2   
10-5       |   Plumbing fixtures and brass fittings................| 183.6   184.0   183.5      .6    -.3       .3      .2     -.3   
10-6       |   Heating equipment 2/................................| 163.5   163.7   163.8     3.5     .1       .1      .2      .1   
10-7       |   Fabricated structural metal products 2/.............| 145.5   145.6   145.8     0       .1       .1      .1      .1   
10-88      |   Fabricated ferrous wire products (June 1982=100) 2/.| 130.4   132.5   132.8     2.2     .2      1.2     0        .2   
10-89      |   Other misc. metal products 2/.......................| 127.4   127.6   127.6      .9    0         .2     0       0     
11-45      |   Mechanical power transmission equipment.............| 171.3   170.6   170.8      .6     .1       .1      .2      .2   
11-48      |   Air conditioning and refrigeration equipment 2/.....| 137.3   136.7   137.3      .1     .4      -.1     -.1      .4   
11-49-02   |   Metal valves, ex.fluid power (Dec. 1982=100)........| 169.6   169.7   170.0     1.2     .2      -.1      .1     -.1   
11-49-05   |   Ball and roller bearings............................| 171.8   171.2   170.9      .4    -.2      -.2     0       -.2   
11-71      |   Wiring devices 2/...................................| 152.0   152.7   152.9     -.5     .1       .1     -.5      .1   
11-73      |   Motors, generators, motor generator sets............| 147.3   147.5   147.2      .5    -.2      0        .4     -.1   
11-75      |   Switchgear, switchboard, etc., equipment 2/.........| 160.3   159.1   159.7      .9     .4       .1     -.1      .4   
11-78      |   Electronic components and accessories 2/............|  91.1    91.0    90.6    -1.5    -.4      -.7      .2     -.4   
11-94      |   Internal combustion engines.........................| 144.1   145.8   145.6      .1    -.1      1.2     -.1     -.1   
11-95      |   Machine shop products 2/............................| 140.6   140.6   141.1      .6     .4      0       0        .4   
13-11      |   Flat glass 2/.......................................| 111.5   110.6   110.1     -.9    -.5      0       -.5     -.5   
13-22      |   Cement..............................................| 152.7   151.8   151.9    -1.4     .1      -.3      .1     0     
13-3       |   Concrete products...................................| 153.2   153.4   153.4      .5    0         .2     -.4      .1   
13-6       |   Asphalt felts and coatings..........................| 119.4   116.9   116.4     4.4    -.4      -.3     -.7     -.4   
13-7       |   Gypsum products 2/..................................| 164.2   178.1   172.0     -.8   -3.4     -2.7     4.3    -3.4   
13-8       |   Glass containers 2/.................................| 140.0   140.8   140.7     3.2    -.1       .6      .1     -.1   
14-12      |   Motor vehicle parts 2/..............................| 112.0   111.7   111.5     -.6    -.2      -.1      .1     -.2   
14-23      |   Aircraft engines & engine parts (Dec. 1985=100).....| 154.0   153.7   153.8     5.7     .1       .2     -.2     0     
14-25      |   Aircraft parts & aux.equip.,nec (June 1985=100).....| 150.5   149.5   149.5    -1.0    0         .2     -.2     0     
15-42      |   Photographic supplies 2/............................| 118.6   118.6   116.4    -1.5   -1.9      0       0      -1.9   
15-6       |   Medical/surgical/personal aid devices 2/............| 154.4   154.6   155.6     2.6     .6      0        .1      .6   
           |                                                       |                                                                 
           | CRUDE MATERIALS FOR FURTHER PROCESSING................| 136.5   135.6   138.3    22.8    2.0     -1.4     3.4     2.6   
           |                                                       |                                                                 
           |  CRUDE FOODSTUFFS AND FEEDSTUFFS......................| 110.4   118.7   127.9    28.0    7.8      3.7     7.0     8.9   
           |                                                       |                                                                 
01-21      |   Wheat 2/............................................|  98.2    95.7    92.8   -25.5   -3.0     11.6    -2.6    -3.0   
01-22-02-05|   Corn................................................|  97.3    96.6    84.9   -14.7  -12.1     -1.7    12.8   -12.2   
01-31      |   Slaughter cattle 2/.................................| 113.8   130.5   157.1    62.0   20.4      6.1    11.0    20.4   
01-32      |   Slaughter hogs......................................|  82.2    69.1    65.6    23.8   -5.1      3.8     2.8    -3.8   
01-41-02   |   Slaughter broilers/fryers...........................| 146.3   156.1   154.6    33.2   -1.0      2.4    -3.2     5.5   
01-42      |   Slaughter turkeys...................................| 100.5   103.1   111.1     6.4    7.8     -7.3     9.6     3.7   
01-6       |   Fluid milk..........................................|  83.0   104.9   110.9    22.5    5.7      6.9     4.9     9.3   
01-83-01-31|   Soybeans 2/.........................................| 108.0   104.8   125.1    35.1   19.4     -5.3     8.5    19.4   
02-52-01-01|   Cane sugar,raw 2/...................................| 115.6   112.4   111.6    -3.6    -.7      -.4    -1.6     -.7       
           |                                                       |                                                                 
           |  CRUDE NONFOOD MATERIALS..............................| 152.8   144.5   141.9    19.2   -1.8     -4.2     1.1    -1.5   
           |                                                       |                                                                 
01-51-01-01|   Raw cotton 2/.......................................|  83.6    89.8   110.9    70.4   23.5     -7.7     5.6    23.5   
01-92-01-01|   Leaf tobacco 2/.....................................|   (3)   109.9   111.1     1.9    1.1      (3)     4.5     1.1   
04-19      |   Hides and skins (June 2001=100) 2/..................|  80.9    86.5    87.8     -.5    1.5      6.0      .7     1.5   
05-1       |   Coal 2/.............................................| 100.4   100.3   101.1     2.5     .8      1.3     1.4      .8   
05-31      |   Natural gas 2/......................................| 237.4   206.7   187.3    39.2   -9.4    -13.1     5.4    -9.4   
05-61      |   Crude petroleum 2/..................................|  82.3    76.5    81.7     6.5    6.8      1.5    -8.4     6.8   
08-5       |   Logs, timber, etc...................................| 178.6   183.0   185.8     2.6    1.5      1.6     1.5     1.7   
09-12      |   Wastepaper 2/.......................................| 202.2   198.4   201.7     5.8    1.7       .4     1.0     1.7   
10-11      |   Iron ore 2/.........................................|  95.9    96.5    96.5     1.6    0         .4     0       0     
10-12      |   Iron and steel scrap................................| 163.7   193.9   195.6    29.1     .9      8.8     4.8     4.7   
10-21      |   Nonferrous metal ores (Dec. 1983=100) 2/............|  77.0    80.5    81.3    19.2    1.0      3.1     4.3     1.0   
10-23-01   |   Copper base scrap 2/................................| 123.8   128.5   132.0    20.7    2.7      3.2     1.2     2.7   
10-23-02   |   Aluminum base scrap.................................| 166.4   167.3   171.3     9.9    2.4      2.0     -.3     4.4   
13-21      |   Construction sand, gravel, and crushed stone........| 177.3   178.0   178.1     2.7     .1       .2      .6      .3   
____________________________________________________________________________________________________________________________________ 
                                                                                                                                     
1/  The indexes for June 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                    | June 2003 |Sept. 2003 | Oct. 2003 |
_________|________________________________________________|___________|___________|___________|
         |                                                |           |           |           |
         | Finished Goods (1967=100)......................|   401.2   |   403.9   |   408.3   |
         | All commodities................................|   138.0   |   138.5   |   139.4   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |            MAJOR COMMODITY GROUPS              |           |           |           |
         |                                                |           |           |           |
         | Farm products and processed foods and feeds....|   131.2   |   136.1   |   141.1   |
01       |   Farm products................................|   107.3   |   116.1   |   124.1   |
02       |   Processed foods and feeds....................|   143.2   |   145.0   |   148.5   |
         |                                                |           |           |           |
         | Industrial commodities.........................|   139.2   |   139.2   |   139.3   |
03       |   Textile products and apparel.................|   119.7   |   119.5   |   119.7   |
04       |   Hides, skins, leather, and related products..|   160.8   |   162.8   |   163.8   |
05       |   Fuels and related products and power.........|   114.3   |   113.1   |   111.1   |
06       |   Chemicals and allied products 2/.............|   162.2   |   161.2   |   161.9   |
07       |   Rubber and plastic products..................|   130.5   |   130.5   |   130.4   |
08       |   Lumber and wood products.....................|   173.8   |   184.4   |   184.3   |
09       |   Pulp, paper, and allied products.............|   190.2   |   190.7   |   190.8   |
10       |   Metals and metal products....................|   128.3   |   129.6   |   130.2   |
11       |   Machinery and equipment......................|   122.0   |   122.0   |   121.9   |
12       |   Furniture and household durables.............|   134.0   |   133.7   |   134.1   |
13       |   Nonmetallic mineral products.................|   148.2   |   148.4   |   148.1   |
14       |   Transportation equipment.....................|   144.3   |   144.0   |   148.3   |
15       |   Miscellaneous products.......................|   179.3   |   179.7   |   180.4   |
         |                                                |           |           |           |
         | Industrial commodities less fuels and related  |           |           |           |
         |   products and power...........................|   144.8   |   145.1   |   145.9   |
         |                                                |           |           |           |
         |                                                |           |           |           |
         |             OTHER COMMODITY GROUPINGS          |           |           |           |
         |                                                |           |           |           |
01-1     | Fruits and melons, fresh and dry vegetables,   |           |           |           |
         |   and tree nuts................................|   105.8   |   118.7   |   116.3   |
01-2     | Grains.........................................|    97.9   |    97.2   |    87.9   |
01-3     | Slaughter livestock............................|   106.3   |   114.5   |   132.7   |
01-4     | Slaughter poultry..............................|   135.2   |   143.4   |   143.8   |
01-5     | Plant and animal fibers........................|    84.6   |    90.9   |   111.8   |
01-7     | Chicken eggs...................................|   115.7   |   145.4   |   159.4   |
01-8     | Hay, hayseeds, and oilseeds....................|   131.8   |   125.8   |   143.3   |
01-83    | Oilseeds.......................................|   118.5   |   114.6   |   134.4   |
01-9     | Other farm products............................|  'N.A.'   |   163.9   |   165.7   |
02-1     | Cereal and bakery products.....................|   170.7   |   171.4   |   171.3   |
02-2     | Meats, poultry, and fish.......................|   132.9   |   133.6   |   143.5   |
02-22    | Processed poultry..............................|   115.6   |   119.9   |   120.5   |
02-5     | Sugar and confectionery........................|   148.7   |   148.5   |   148.6   |
02-6     | Beverages and beverage materials...............|   150.1   |   149.7   |   150.0   |
02-63    | Packaged beverage materials....................|   129.2   |   129.1   |   129.1   |
02-7     | Fats and oils..................................|   157.2   |   153.1   |   165.2   |
03-81    | Apparel........................................|   125.5   |   124.8   |   125.2   |
04-4     | Other leather and related products.............|   148.1   |   148.7   |   148.1   |
05-3     | Gas fuels......................................|   212.5   |   187.5   |   175.0   |
05-4     | Electric power.................................|   144.2   |   147.9   |   144.7   |
05-7     | Refined petroleum products.....................|    92.3   |    97.8   |    96.6   |
06-3     | Drugs and pharmaceuticals......................|   274.3   |   276.4   |   276.6   |
06-5     | Agricultural chemicals and products............|   135.0   |   135.4   |   136.2   |
06-7     | Other chemicals and allied products............|   140.8   |   141.5   |   141.7   |
07-1     | Rubber and rubber products.....................|   119.1   |   119.9   |   120.2   |
07-11    | Rubber, except natural rubber..................|   125.6   |   127.2   |   127.6   |
07-13    | Miscellaneous rubber products..................|   140.8   |   141.3   |   141.3   |
07-2     | Plastic products...............................|   139.0   |   138.8   |   138.5   |
08-1     | Lumber.........................................|   171.0   |   184.5   |   180.5   |
09-1     | Pulp, paper, and products, excluding building  |           |           |           |
         |   paper and board..............................|   157.9   |   156.8   |   156.7   |
09-15    | Converted paper and paperboard products........|   165.6   |   165.3   |   164.8   |
10-1     | Iron and steel.................................|   119.2   |   122.2   |   123.2   |
10-2     | Nonferrous metals..............................|   122.8   |   124.5   |   125.6   |
10-25    | Nonferrous mill shapes.........................|   137.0   |   137.3   |   137.6   |
11-3     | Metalworking machinery and equipment...........|   150.2   |   150.3   |   150.0   |
11-4     | General purpose machinery and equipment........|   155.6   |   155.6   |   155.8   |
11-6     | Special industry machinery.....................|   166.6   |   169.2   |   169.6   |
11-7     | Electrical machinery and equipment.............|   114.9   |   114.6   |   114.5   |
11-9     | Miscellaneous machinery and equipment..........|   137.2   |   137.9   |   138.2   |
12-6     | Other household durable goods..................|   158.9   |   158.3   |   158.6   |
13-2     | Concrete ingredients...........................|   165.2   |   165.3   |   165.4   |
14-1     | Motor vehicles and equipment...................|   127.8   |   126.8   |   132.6   |
15-1     | Toys, sporting goods, small arms, etc..........|   133.2   |   132.2   |   132.2   |
15-4     | Photographic equipment and supplies............|   104.9   |   104.9   |   103.6   |
15-9     | Other miscellaneous products...................|   141.1   |   141.1   |   141.7   |
__________________________________________________________|___________|___________|___________|
                                                                                               
1/  Data for June 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. 
3/  Not available.

                                 
                                                                                               
Table 4.  Producer price indexes for the net output of major industry groups, not seasonally adjusted             
__________________________________________________________________________________________________________________
                  |                                              |     |         Index         |  Percent change  
  Industry        |                Industry 1/                   |Index|_______________________|to_Oct._2003_from:
    code          |                                              |base |       |       |       |        |         
                  |                                              |     |June   |Sep.   |Oct.   |  Oct.  |  Sep.   
                  |                                              |     |2003 2/|2003 2/|2003 2/|  2002  |  2003   
__________________|______________________________________________|_____|_______|_______|_______|________|_________
                  |                                              |     |                                          
                  |Total mining industries...................... |12/84| 137.1   126.2   123.2     17.9     -2.4  
       10         | Metal mining................................ |12/84|  80.1    83.1    84.0     15.4      1.1  
       12         | Coal mining................................. |12/85|  94.4    94.3    95.0      1.7       .7  
       13         | Oil and gas extraction...................... |12/85| 169.3   152.0   147.0     23.0     -3.3  
       14         | Mining and quarrying of non-metallic         |     |                                          
                  |  minerals, except fuels..................... |12/84| 146.6   146.9   147.0      2.3       .1  
                  |                                              |     |                                          
                  |Total manufacturing industries............... |12/84| 136.3   137.1   138.3      2.0       .9  
       20         | Food and kindred products................... |12/84| 137.1   138.8   141.6      7.6      2.0  
       21         | Tobacco manufactures........................ |12/84| 376.1   376.8   378.7     -7.3       .5  
       22         | Textile mill products....................... |12/84| 115.4   115.5   116.6       .9      1.0  
       23         | Apparel and other finished products made     |     |                                          
                  |  from fabrics and similar materials......... |12/84| 124.9   124.9   125.0      -.1       .1  
       24         | Lumber and wood products, except furniture.. |12/84| 157.2   166.8   167.4      8.3       .4  
       25         | Furniture and fixtures...................... |12/84| 147.5   147.6   147.9       .5       .2  
       26         | Paper and allied products................... |12/84| 145.1   144.6   144.3      -.2      -.2  
       27         | Printing, publishing, and allied industries. |12/84| 197.6   197.9   198.2      2.4       .2  
       28         | Chemicals and allied products............... |12/84| 165.0   164.5   164.9      3.3       .2  
       29         | Petroleum refining and related products..... |12/84| 116.0   122.1   121.1      3.1      -.8  
       30         | Rubber and miscellaneous plastic products... |12/84| 128.8   128.6   128.5      1.7      -.1  
       31         | Leather and leather products................ |12/84| 142.7   142.6   143.2      1.0       .4  
       32         | Stone, clay, glass, and concrete products... |12/84| 137.7   138.1   137.9       .4      -.1  
       33         | Primary metal industries.................... |12/84| 117.8   118.3   119.0       .8       .6  
       34         | Fabricated metal products, except machinery  |     |                                          
                  |  and transportation equipment............... |12/84| 132.7   133.1   133.2       .9       .1  
       35         | Machinery, except electrical................ |12/84| 116.0   115.9   116.0      -.7       .1  
       36         | Electrical and electronic machinery,         |     |                                          
                  |  equipment, and supplies.................... |12/84| 103.6   102.3   102.2     -2.8      -.1  
       37         | Transportation equipment.................... |12/84| 136.8   136.5   141.4      1.4      3.6  
       38         | Measuring and controlling instruments;       |     |                                          
                  |  photographic, medical, optical goods;       |     |                                          
                  |  watches, clocks............................ |12/84| 129.9   129.9   130.2      1.1       .2  
       39         | Miscellaneous manufacturing industries...... |12/85| 133.9   134.2   134.0       .3      -.1  
                  |                                              |     |                                          
                  |Services industries                           |     |                                          
       40         | Railroad transportation..................... |12/96| 109.2   108.8   109.4      2.4      0.6  
       42         | Motor freight transportation and warehousing |06/93| 127.4   128.7   128.6      2.5      -.1  
       43         | United States Postal Service................ |06/89| 155.0   155.0   155.0    0        0      
       44         | Water transportation........................ |12/92| 147.6   151.7   151.7      7.6    0      
       45         | Transportation by air....................... |12/92| 162.3   162.9   164.1      2.5       .7  
       46         | Pipelines, except natural gas............... |12/86| 111.9   112.2   112.1      -.5      -.1  
       48         | Communications.............................. |06/01|  97.8    97.2    97.3      -.2       .1  
       54         | Food stores................................. |12/99| 117.9   118.9   120.9      6.7      1.7  
       55         | Automotive dealers and gasoline service      |     |                                          
                  |  stations................................... |12/01|  92.4    94.8    94.7     12.3      -.1  
       59         | Miscellaneous retail........................ |06/00| 105.7   104.3   104.0      -.3      -.3  
       80         | Health services............................. |12/94| 124.0   124.7   125.8      4.3       .9  
       81         | Legal services.............................. |12/96| 125.3   126.5   126.3      2.8      -.2  
__________________________________________________________________________________________________________________
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 June 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                                |        |        |        |        |        |        
                                                       |   May  |  June  |  July  |  Aug.  |  Sep.  |  Oct.  
                                                       |  2003  |  2003  |  2003  |  2003  |  2003  |  2003  
_______________________________________________________|________|________|________|________|________|________
                                                       |                                                     
      Finished goods...................................|  141.8    142.5    142.8    143.4    143.8    144.9 
        Finished consumer goods........................|  143.4    144.4    144.5    145.3    145.8    147.2 
          Finished consumer foods......................|  144.5    145.0    144.7    145.7    147.4    150.7 
            Crude......................................|  133.5    122.5    123.3    130.2    137.3    134.3 
            Processed..................................|  145.3    146.8    146.5    147.0    148.2    152.0 
          Finished consumer goods, excluding foods.....|  142.7    143.8    144.1    144.8    144.9    145.4 
            Nondurable goods less foods................|  145.6    147.5    147.9    148.7    148.8    149.0 
            Durable goods..............................|  132.6    132.2    132.5    132.7    132.6    134.1 
        Capital equipment..............................|  139.1    139.1    139.7    139.8    139.7    140.5 
          Manufacturing industries.....................|  139.5    139.8    140.4    140.6    140.6    140.8 
          Nonmanufacturing industries..................|  138.9    138.8    139.3    139.5    139.3    140.3
                                                       |                                            
      Intermediate materials, supplies, and components.|  132.5    133.2    133.3    134.0    133.8    134.3 
        Materials and components for manufacturing.....|  129.2    129.5    129.3    130.0    129.8    130.5 
          Materials for food manufacturing.............|  130.6    133.9    133.1    134.8    136.4    141.6 
          Materials for nondurable manufacturing.......|  136.8    137.2    136.5    138.0    136.4    137.3 
          Materials for durable manufacturing..........|  126.7    126.6    127.0    127.7    128.8    129.6 
          Components for manufacturing.................|  126.1    126.0    126.0    125.9    125.9    125.8 
        Materials and components for construction......|  152.6    152.7    153.3    153.5    154.9    155.3 
        Processed fuels and lubricants.................|  108.2    111.2    111.6    113.8    112.0    112.6 
          Manufacturing industries ....................|  113.2    116.6    117.4    119.5    117.9    117.0 
          Nonmanufacturing industries..................|  105.2    107.9    108.0    110.2    108.3    109.9 
        Containers.....................................|  153.9    154.1    153.7    153.6    153.6    153.2 
        Supplies.......................................|  141.5    141.5    141.6    141.4    141.7    141.8 
          Manufacturing industries.....................|  146.9    146.7    146.9    146.9    146.6    146.6 
          Nonmanufacturing industries..................|  139.0    139.0    139.1    138.8    139.2    139.5 
            Feeds......................................|  104.6    104.5    104.7    101.8    107.4    108.7 
            Other supplies.............................|  143.3    143.3    143.4    143.3    143.3    143.4 
                                                       |                                            
      Crude materials for further processing...........|  130.1    135.8    132.1    130.3    134.7    138.2 
        Foodstuffs and feedstuffs......................|  109.7    109.3    105.6    109.5    117.2    127.6 
        Nonfood materials..............................|  142.0    152.5    148.9    142.6    144.2    142.0
          Nonfood materials except fuel 2/.............|  108.7    113.4    113.5    116.6    114.2    119.3 
            Manufacturing 2/...........................|   99.8    104.3    104.3    107.2    105.0    109.7 
            Construction...............................|  179.4    178.2    177.9    179.7    181.4    182.9 
          Crude fuel 3/................................|  183.7    203.0    193.4    171.8    180.1    165.8 
            Manufacturing industries...................|  174.7    192.4    183.4    163.6    171.3    158.2 
            Nonmanufacturing industries................|  187.9    207.6    197.8    175.7    184.1    169.5 
                                                       |                                            
                     Special groupings                 |                                            
                                                       |                                            
      Finished goods, excluding foods..................|  140.9    141.7    142.1    142.6    142.6    143.2 
      Intermediate materials less foods and feeds......|  133.0    133.7    133.8    134.6    134.2    134.6 
      Intermediate foods and feeds.....................|  122.7    124.9    124.4    124.6    127.5    131.5 
      Crude materials less agricultural products 2/....|  144.6    155.6    151.6    144.7    146.2    143.3
                                                       |                                            
      Finished energy goods............................|   98.0    100.8    101.5    102.7    102.8    102.7 
      Finished goods less energy.......................|  148.4    148.4    148.6    149.0    149.4    150.9 
      Finished consumer goods less energy..............|  152.3    152.4    152.4    152.9    153.6    155.4 
                                                       |                                            
      Finished goods less foods and energy.............|  150.1    150.0    150.3    150.5    150.5    151.3 
      Finished consumer goods less foods and energy....|  157.5    157.3    157.4    157.6    157.7    158.6 
      Consumer nondurable goods less foods and energy..|  177.6    177.7    177.5    177.7    177.9    178.2 
                                                       |                                            
      Intermediate energy goods........................|  107.3    110.4    111.0    113.7    111.1    111.8
      Intermediate materials less energy...............|  137.4    137.5    137.4    137.6    138.0    138.5
      Intermediate materials less foods and energy.....|  138.4    138.4    138.3    138.5    138.7    139.1 
                                                       |                                            
      Crude energy materials 2/........................|  141.4    156.2    151.0    139.9    140.7    135.7 
      Crude materials less energy......................|  118.7    118.3    115.7    120.0    126.6    135.4
      Crude nonfood materials less energy 3/...........|  145.4    145.3    145.6    151.0    154.5    159.3 
_____________________________________________________________________________________________________________
                                                                                                             
  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 June 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.