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New stage of process price system developed for the Producer Price Index.

New stage of process price system developed for the Producer Price Index

The new industry-based system applies input/output transaction relationships to the measurement of industrial price change ROBERT GADDIE AND MAUREEN ZOLLER

A new industry-based stage of process price index system was first published with the release of the Producer Price Index for January 1988. This index system for the first time combines the industry price indexes developed through the Product Price Index revision with inter-industry transaction data from the Department of Commerce Input/Output Tables of the United States to create a rigorous input/output price model of the industrial economy. Development and publication of this new set of industry-based stage of process indexes accomplishes one of the major objectives of the Producer Price Index revision.(1) This revision began in 1977 and now covers virtually all of the nearly 500 Standard Industrial Classification (SIC) industries in the mining and manufacturing sectors of the economy.

In addition to the new industry-based stage of process price system, the Bureau is continuing to publish the traditional commodity-based stage of processing system, which has been the focus of Producer Price Index presentation and analysis since 1978.

The new industry-based stage of process system consists of the following specific indexes:

1. Four major output indexes a. Crude processors b. Primary processors c. Semifinished processors d. Finished processors

2. Four major input indexes with two major subindexes for inputs to final demand a. Inputs to primary processors b. Inputs to semifinished processors c. Inputs to finished processors d. Inputs to final demand (i) Inputs to personal consumption (ii) Inputs to capital investment.

These new indexes reflect the following advancements in concept and approach:

Explicit conceptual definition of the type of index produced. In this new system, each index is explicitly either an index of output from an index of input to a defined economic activity.

Rigorous allocation of industries to processing stages, using inter-industry shipments flow data developed from the Input/Output Tables of the Unnited States.

Use of net output and net input weighting to eliminate multiple counting of price change within the stage of process system.

This article discusses the economic interest and conceptual foundation of stage of process indexes, the algorithms for assignment of industries to processing stages, and the detailed methods of weighting and calculation.

Economic interest

Although a single number often is used to summarize the rate of inflation in the economy, there are, at any given time, a variety of rates of price change which characterize different industries and economic sectors. In 1987, for example, the widely cited Producer Price Index (PPI) for Finished Goods rose 2.1 percent. However, in the same year, passenger car prices fell 3.1 percent while gasoline prices climbed 20.5 percent. Also in 1987, the index for Crude Materials moved up 8.8 percent and that for Intermediate Materials, Supplies, and Components increased 5.5 percent.

A major challenge in constructing price indexes is to develop an index system that summarizes this diversity of price change into meaningful analytic constructs. The Bureau's chief mechanism for accomplishing this is the stage or process structure, which has been its primary vehicle for publication and analysis of industrial price change since 1978.

The basic idea of a stage of process system is that the economy can be subdivided into distinct economic segments which can be arranged sequentially so that the outputs of earlier segments become inputs to subseqent ones, up through final demand. As a simple example, one economic sector may produce wheat, which is input to another that produces flour, which is input to another that produces bread. To the extent that such a sequential system of processing stages can be defined, it is possible to trace the transmission of price change through the economy and to develop information on both the timing and magnitude of price passthroughs to final demand.

The stage of process approach is of particular interest when inflationary pressures are first reflected in crude commodities. This was certainly the case with the oil price shocks of the 1970's, but there has long been concern among economists aboiut about have price changes in basic industries such as steel are transmitted to other industries and economic sectors.

At the time of the 1973-74 oil price shock, the Bureau's major publication vehicle for producer prices was the "All Commodities" index, which included the full range of priced items irrespective of their degree of fabrication. This index became subject to considerable criticism as oil prices surged because the crude oil increase was multiplied as it passed through into the cost structures of, first, refined petroleum products manufacturers and then to other producers as the higher energy prices were embodied in their cost structures. (2)

With a stage of process, approach this multiple counting of price change in the same index is limited. In addition, the actual transmission of the crude changes is more easily discerned than when it is masked in a single All Commodities index number.

In 1978, the Bureau shifted its publication emphasis from the All Commodities index to the commodity-based stage of process system. The latter set of indexes had been calculated for many years as an analytic aid. In the commodity-based stage of process system, products priced in the PPI were allocated to three stages of process based on their degree of fabrication and end use. Because industry indexes were not available in the PPI system, it was impossible to create aggregates that would specifically reflect inputs and outputs of defined economic sectors. But it was at least possible to separate out major stages of a product's fabrication to mitigate multiple counting of price change. The Finished Goods index was emphasized because it measured the prices of goods nearest final consumption. The Crude and Intermediate indexes served both as price measures for less fabricated goods and as possible indicators of future movements in Finished Goods prices as price changes were passed through the economy.

While the emphasis on the stage of process system was certainly an analytic advancement from summarizing all price change in a single index number, the commodity-based stage of process system still contains some multiple counting, particularly within the Intermediate Materials index, and is not analytically rigorous in composition or input/output definition. Therefore, the Bureau undertook an effort to produce a stage of process system which would reflect the actual input/output flow of transactions in the economy and which would totally eliminate multiple counting of price change.(3) The new industry-based stage of process system is the result of that effort.

Conceptual design

An industry-based stage of process design places industries in processing stages based on their transaction relationships to other industries. For example, the agricultural industries sell wheat to the flour milling industry which sells flour to the bakery industry. In an industry-based stage of process system, these industries would be placed in sequential stages, because that is the way the sales and the cost impacts flow.

The industry-based stage of process structure is explicitly based on an input/output matrix as displayed in table 1. The left hand column of table 1 consists of all the producing industries in the economy, plus imports. Along the top of the table are arrayed the same economic sectors, along with final demand. Each box or cell within the matrix represents the output of the category in the left-hand column which is consumed by the category at the top of the column. For example, cell "C" represents the output of primary goods producers which is consumed by producers of semifinished goods.

An output index for primary producers will include all of the transactions in cells "A" through "H," "H," except cell "B," which represents the value of sales of primary producers to other primary producers. Alternatively, an input index for primary producers will cover transactions in cells "I," "J," "K," and "L" in the column below primary producers. Again, cell "B" is excluded because it contains only internal sales among primary producers.

This generalized input/output matrix can be used to characterize the basic flow of a stage of process system as well as the real world problems that may occur in constructing one. As mentioned previously, the fundamental idea of a stage of process system is that there are identifiable and distinct econmic sectors which can be arrange sequentially so that the outputs of earlier segments become inputs to subsequent ones up through final demand. Therefore, in an ideal stage of process system, all of the value of output of primary producers would be in cell "C" and all of the value of input to semifinished processors would be in cell "C." Unfortunately, the real world is more complex.

Variations from the ideal stage of process flow take the following forms:

Backflow occurs when part of the output of a given stage of process is consumed by an earlier stage of process. Cell "A" in table 1 represents backflow because output of primary producers is consumed by crude producers. For example, the refined petroleum industry is a primary producer but crude goods industries all use petroleum products such as gasoline. The value of these sales is a back-flow.

Internal flow occurs when part of the output of a given stage of process is consumed within that stage of process. Cell "B" in table 1 represents internal flow because it is both output and input to primary producers. The refined petroleum industry also sells gasoline to other primary industries. The value of these sales is an internal flow.

Skips occur when part of the output of a given stage of process is consumed by stages of process beyond the one next forward. Cell "D" in table 1 represents a skip because part of the output of primary producers is consumed by finished producers, a catergory two stages forward from primary. Continuing the petroleum example, the refined petroleum industry sells a portion of its products directly to finished goods producers. The value of these sales is a skip.

Leakages occur if some portion of output does not appear as input anywhere in the system. This cannot occur if the stage of process system is comprehensive of all transactions, but it is of interest because leakage does occur in partial systems. For example, PPI pricing at this time does not include motor freight (trucking). Therefore, in a stage of process design based on the current PPI price universe, the sales of gasoline and diesel fuel to the trucking industry will simply "leak" out of the system. These outputs will not appear as inputs because the trucking industry which consumes them is not priced.

Much of the discussion of stage of process design emphasizes minimization of backflow as the primary goal. Back-flow is a substantial problem, because it introduces circularity into what is supposed to be a sequential system. Additionally, if output is flowing backward, it obviously impairs the forward directionality of the index system which is crucial to its analytic usefulness.

The existence of internal flow has some of the same effects. While internal flow does not cause circularity in the system, it does reduce its forward directionality. Equally as important if not more so, large internal flows would tend to indicate a faulty taxonomy. That is to say, if industries within a stage of process are substantially shipping to each other, there probably are within that stage of process two or more real processing stages which should be separated.

The PPI industry stages of process design takes both back-flow and internal flow into account by emphasizing the goal of maximum net forward flow. In terms of table 1, this means that the system would maximize the value of shipments appearing above and to the right of the shaded diagonal.

Skips and leakages present a somewhat different set of problems. While they do not affect directionality of the system, they do create difference between the output of one processing stage and inputs to the next. Leakages are a particularly significant problem because current PPI pricing is substantially limited to mining, manufacturing, and agriculture. Pricing of the service sector is spotty and is only slowly being expanded.

Because skips and leakages cannot at this time be avoided, the PPI stage of process system explicitly provides material input indexes for each stage of process beyond crude producers. Input indexes also compensate for whatever problems of backflow remain after forward flow is maximized. The difference between the output index of one processing stage and the material input index to the next can be evaluated specifically by comparing these indexes in the PPI system.

Categorization of industries

The PPI stage of process design began with the determination that there should be four stages of process: Crude producers Primary producers Semifinished producers Finished producers This categorization reflects a considerable amount of experience with stage of process index problems. It particularly reflects concern that the Intermediate Materials component in the traditional three-stage PPI system is too broad and is masking significant internal differences. In addition, through the course of allocating industries to processing stages, the magnitude of internal flow was specifically evaluated. The relatively small amount of internal flow achieved indicates that a four-part division is appropriate.

The key set of date needed to allocate industries to processing stages is comprehensive information on the pattern of inter-industry shipments. The basic source of this information is the Input/Output Tables of the United States published by the U.S. Department of Commerce. The input/output tables show all output of goods and services produced by industry and showl the goods and services each industry consumes. Using an assumption that firms are indifferent as to the industry of origin for the goods and services they buy, these tables can be recalculated into a matrix of interindustry shipments. These data can the be used to rigorously evaluate the flow characteristics of any given stage of process allocation. This was done using the 1977 Input/Output tables, which were the most recent available for detailed (537-industry) input/output industry definitions.

Because final demand is predefined and all of the other processing stages are to be defined through the allocation process, the first step in stage of process allocation is to identify those input/output industries shipping to final demand. Those that ship exclusively to final demand must be finished goods producers, because they would have no backflow, no internal flow, and only forward flow to final demand. There are, however, may other industries that do not ship exclusively to final demand but ship a large percentage of their product to final demand. The question then becomes, which of these industries should be allocated to the group of finished goods producers?

To make that determination, a frequency distribution was constructed for all industries showing the proportion of their net shipments that go to final demand. Clearly, industries shipping more than 95 percent of their output to final demand should be classified as finished goods producers and the frequency diagram showed similar numbers of industries shipping 75 to 85 percent and 86 to 95 percent of their output to final demand. The number of industries in the intervals shipping below 75 percent to final demand fell sharply, however. Therefore, as a first cut, all industries that shipped 75 percent or more of their output to final demand were classified as finished producers.

This process was then repeated for earlier stages of process. To determine the first cut of semifinished producers, for example, a frequency distribution was prepared showing shipments of unallocated industries to final demand and to industlries previously identified as finished. Through this process, a breakpoint of 60 percent was identified, so that semifinished producers were those industries which shipped 60 percent of their output to finished producers and final demand but shipped less than 75 percent of their output to final demand alone.

A forward breakpoint of 60 percent was also identified for primary producers. Crude producers were the industries left over after the other stages of process were defined.

The result of this series of preliminary allocations was a base stage of processing allocation which could then be iteratively improved by analyzing the net forward flow contribution of individual industries. The specific mechanism for this analysis was calculation of the net forward flow effect for each industry if it were placed in each processing stage with all other industry allocations remaining unchanged. Optimally, an industry should be assigned to the processing stage in which its net forward flow contribution is largest.

The net forward flow effect for each individual industry was expressed as the following:

1. The sum of forward shipments of the industry and the inputs received from prior stages of process, minus

2. The sum of backward shipments of the industry and the inputs received from forward stages of process. Using this procedures, the allocations were iteratively improved until further reassignments could not significantly improve net forward flow. When the net forward flow statistics between two stages of process were very close for an individual industry, however, there was a preference for placing the industry with other similar industries and to limit problems with skips.

Table 2 shows the flow characteristics of the final PPI stage of process design. The precentages shown in the table represent that part of the output of each row stage consumed by each column stage. Using primary producers as an example, the flow pattern is as follows:

7.5 percent of the output of primary producers is consumed by crude producers. This is a backflow.

11.8 percent of the output of primary producers is consumed by primary producers. This is an internal flow.

80.7 percent of the output of primary producers is consumed by forward stages of process (25.9 percent by semifinished, plus 20.8 percent by finished, plus 34.0 percent by final demand). This is forward flow.

The total flow statistics for the entire stage of process structure are: backflow, 5.01 percent; internal flow, 7.86 percent; forward flow, 87.13 percent; and shipments to the next forward stage of process, 57.30 percent.

This system exhibits extremely strong directionality with very small backflow. In addition, the relatively small percentages of internal shipments indicate that the four-stage taxonomy is effectively isolating processing stages. However, there remains a problem with skips, because only 57.30 percent of shipments are going to the next forward processing stage. This serves to underline the importance of specific input indexes as components of the stage of process system.

In addition to considering the flow characteristics of a complete model involving all industries in the economy, the PPI design has to consider the flow characteristics of a more limited model which corresponds to the industries now priced. Although the PPI is moving to increase its coverage of the service sector, the bulk of PPI pricing remains in agriculture, mining, and manufacturing. The set of stage of process indexes that the Bureau is able to produce at this time thus is limited to "processors," or those industries that are primarily engaged in the physical transformation of goods. The net shipments of processors accounted for 42 percent of the total net value of output of all producing industries in the economy, according to the 1977 input/output tables.

A flow analysis was calculated for the processor componenet alone to evaluate the allocation design for the specific set of industries that would be covered by currently available Producer Price Indexes. The flows in this analysis represent shipments by processors to all industries (processors and nonprocessors) and to final demand. The results appear in table 3. The summary flow statistics: backflow, 5.76 percent; internal flow, 10.59 percent; forward flow, 83.66 percent.

The flow pattern for processors alone is nearly as good as for all industries. The PPI system thus can be rather straight-forwardly constructed in two steps. The first step is produce input and output indexes for processors alone and for processors' input to final demand, using currently available Producer Price Indexes. The second step is to construct a set of indexes for nonprocessors and for the total economy as PPI index coverage is expanded. The new stage of process indexes just introduced reflect completion of the first step of the long-term construction of this system.

Output indexes for processors

The result of the allocation process described above was to place each of the 537 input/output industries in its appropriate stage of process. To create PPI output price indexes, it is necessary to match the PPI four-digit industry net output indexes (4) to those input/output industries that are processors, and then to weight them appropriately.

The Department of Commerce publishers a general concordance between the input/output industry classification and the Standard Industrial Classification. This leads to unique assignment of most four-digit PPI industries which are based on the SIC system. For those remaining cases in which there was not a one-to-one match between input/output and PPI industries, the PPI industries were assigned to the input/output industry that appeared to reflect the bulk of the PPI industry's shipments value. Through this process, each PPI four-digit industry was assigned to one, and only one, stage of process. The final allocation of PPI industries by stage of process appears in exhibit 1.

The industries are weighted into the stage of process total based on their 1982 net output value of shipments. The net output value includes only that portion of output value which goes to industries in other stages of process and excludes shipments among industries within a stage of process. Net output weighting eliminates multiple counting of price change by weighting only those prices that affect other economic sectors. The specific methodology for the industry weights within a stage of process is to multiply the 1982 total value of industry shipments, generally available from either the 1982 Census of Manufacturers or Census of Mineral Industries, by a net output ratio calculated from the input/output tables. The net output ratio is the proportion of industry shipments that goes to industries outside the stage of process.

The net output weights are then applied to the PPI four-digit industry indexes, as currently published in table 5 of the Bureau's publication Producer Price Indexes, to calculate aggregate indexes by stage of process. Several sub-indexes also are produced within each stage of process which correspond to important economic characteristics. For example, separate subindexes are produced for foods processors, energy processors, nondurable goods processors, and durable goods processors. The output indexes by stage of process will be published as table 12 in Producer Price Indexes. An example of the output index system appears here as table 4.

Input indexes for processors

Construction of input indexes by stage of process is somewhat more complicated than construction of output indexes. In the output indexes, all of an industry's production is assigned to one, and only one, stage of process. In the input indexes, however, a single industry's products may be consumed at several processing stages. In addition, different products within an industry's product line may be consumed by different stages of process. For example, gasoline produced by the petroleum refining industry may be consumed at all stages of process while jet fuel would be predominantly consumed by the processing stage that included airlines.

The input index design, therefore, has to specifically deal with these two issues:

What proportion of a particular industry's products is consumed by a given stage of process?

What particular mix of those products is consumed by that given stage of process?

The answer to the first can be estimated from the input/output tables. Because the input/output tables show ronsumption of products by commodity category, the proportionate use is simply the total commodity consumption of industries within the processing stage divided by the total use of the commodity by all industries. The gross commodity weights for the input indexes thus are the 1982 commodiity value of shipments, usually from the Census of Manufacturers or Census of Mineral Industries, multiplied by the proportionate use ratio calculated as above from the input/output tables.

One further step is then required to calculate the final input index weights. The focus of interest in input indexes is in flows into the state of process, not internal transactions within the stage of process. Therefore, the commodity usage of each processing stage must be reduced by a net input ratio. The net input ratio, calculated from the input/output tables, reflectes the proportion of commodity inputs that is received from industries outside the processing stage of interest. For example, the net input ratio for petroleum products would be high in all processing stages except the one that includes the petroleum refining industry.

The total weight availabe in a given stage of process input index for a single four-digit SIC commodity is:

1. The 1982 total value of four-digit SIC commodity shipments, multiplied by

2. The proportionate use of that commodity by the industries in the stage of process, multiplied by

3. The net input ratio for that commodity in that stage of process.

If one is willing to assume that the industries within the relevant stage of process consume all specific products within a four-digit SIC classification proportionately, the total four-digit commodity index could be used directly in calculating an input index. In many cases, that is a reasonable assumption. While the PPI industry index system does not currently contain indexes that are explicitly "wherever made," the primary products commodity indexes published below the four-digit SIC industry indexes in table 5 of Producer Price Indexes cover the great majority of commodity shipments. These indexes thus can be used in constructing input indexes without substantially compromising coverage in most cases.

In reviewing the input consumption patterns of stages of process, it was discovered that the consumption of specific products within a general commodity classification was sometimes not proportionate. As an example, within the general classifiation of motor vehicles, automobiles are more likely to go to personal consumption expenditures and heavy trucks are more likely to go to capital investment. Because the potential for these types of differentiations is virtually endless, the PPI design adopted two guiding principles in looking below the four-digit SIC commodity classification structure:

A breakout below the four-digit SIC level will occur only when there is clear evidence of different usage patterns and the difference has substantial effect. The effect judgment is subjective but, in general, the PPI design attempted to avoid introducing index complexity when it was unlikely to affect the published input index.

Breakouts will be based on objective data to the maximum possible extent. This required use of multiple additional data sources, the most important of which were motor vehicle consumption data from the Commerce Deaprtment's Bureau of Economic Analysis and petroleum consumption data from the Department of Energy.

The final input indexes thus consist of SIC-based commodity indexes at the four-digit level, and occasionally lower levels aggregated by net input weights on a 1982 value basis.

Input indexes are published for the stages fo process beyond the crude category and for final demand. As in the case of the output indexes, a variety of subindexes are also published separating durables and nondurables and other significant product types. The input indexes appear as table 13 of Producer Price Indexes, an example of which appears here as table 5.

It should be noted that the subdivisions in the input index design are commodity classifications, which are somewhat different than the industry classifications in the output index design. For example, an industry that produces mostly durable products but some nondurable products will reside completely within durables on the output index structure. In the input index structure, however, the durable products will appear under durables and the nondurable products will appear under nondurables.

Comparison with current indexes

The new industry-based stage of process system outlined above currently is being published along with the trasitional commodity-based stage of process structure which has been ther focus of Producer Price Index presentation asnd analysis adjusted because sufficient historical data do not yet exist to allow accurate adjustment.

Clearly, there are significant differences between the current commodity-based stage of process system and the new industry-based system. The most obvious, of course, is that the new industry model has four stages of process while the commodity model has three. The most profound conceptual difference, however, is that the industry-based system is a transaction flow model of input/output indexes while the traditional stage of process system is a commodity transformation model based on degree of fabrication and end use.

The new industry-based stage of process system allocates industies to one, and only one, processing stage. It then measures price change of inputs to and outputs from the set of industries composing each stage of process. The traditional commodity stage of process of fabrication and end commodities based on their stage of process structure are not speficially designed as either input or output indexes.

Nevertheless, these two assignment mechanisms lead to similar results in many cases. Wheat, flour, and bread are assigned to sequential processing stages in both the traditional commodity and new industry stage of process structrures. This reflects both the degrees of fabrication in the production of bread and the way transactions actually flow between industries in the economy.

However, one way in which differences may occur can be seen in the treatment of food grains, such as wheat versus feed grains such as corn. In an index structure based on degree of fabrication, food grains and feed grains look similar. They are both raw agricultural products.

On the other hand, food grains and feed grains are not the same in terms of the way they get to final consumption. Wheat, for example, takes the direct route of wheat-flour-bread mentioned above. In contrast, corn goes to final demand through an additional step because it is primarily input to livestock production, another raw agricultural industry.

In the traditional commodity system, food grains, feed grains, and livestock appear at the same stage of process because they are all raw agricultural products. In the industry-based structure, food grains and livestock appear at the same stage of process because their paths to final demand are similar, and feed grains appear at an earlier stage of process. This reflects the fact that changes in feed grain prices are likely to take longer to get to final demand than would changes in food grains prices.

These important differences in how the new industry-based and the traditional commodity-based stage of process systems are constructed make it difficult to match up indexes from the two systems. In the case of Finished Goods, the third stage in the traditional commodity system, a close match in the industry system does exist, however. The traditional Finished Goods index explicitly defines as finished products those products that go to final demand for personal usage by personal consumption expenditures and capital investment. That is the same conceptual basis as for the industry-based input index for final demand.

This is not to say that the industry-based inout index to final demand will behave precisely the same as the current Finished Goods index. The calculation methods are somewhat different and coverage varies to some extent. The overall conceptual designs of the input index to final demand and the Finished Goods index, however, are essentially the same.

At the earlier stages of process in the commodity system there are no precise industry-based analogs. The current PPI Crude Materials index, for example, is neither a conceptual nor operational match to the crude processors output index in the industry system. Neither does the commodity-based Intermediate Materials, Supplies, and Components index have a precise industry-based equivalent.

The major analytic innovation of the industry-based stage which is similar to the commodity system, but in the index sequences that trace flows through the economy. In these areas, the precise definition of input and output indexes, the rigorous allocation of industries based on inter-industry shipment flows, and the use of net input and net output weighing, can be expected to substantially enhance the analytic power of the Bureau's stage of process system for producer prices.

TABLE: Table 1. Generalized stage of processing input/output table, all industries

TABLE: Producing Crude Primary Semifinished Finished

TABLE: Industry
 TABLE: Personal consumption Capital Exports Government
 TABLE: expenditures Investment purchases


TABLE: Table 2. Percentage of producing industry output consumed by stage of process, all industries

TABLE: Consuming industry

TABLE: Producing
 TABLE: Industry Crude Primary Semifinished Finished Final
 TABLE: demand


TABLE: Table 3. Percentages of producing industry output consumed by stage of process, processor component only
 TABLE: Consuming Industry
 TABLE: Producing Crude Primary Semifinished Finished Final
 TABLE: Industry demand


TABLE: Table 4. Producer Price Indexes and percent changes for the net output of industry by stage of process (June 1987=100)
 TABLE: Unadjusted
 TABLE: Relative Index(2) 12
 TABLE: Grouping(1) Importance, months
 TABLE: December ending
 TABLE: 1987 October January February February
 TABLE: 1972(2) 1988(2) 1988(2) 1988
 TABLE: Unajusted percent changes
 TABLE: 3 months ending -- January
 TABLE: Grouping(1) 1988
 TABLE: May August November February to
 TABLE: 1987 1987 1987 1988 February
 TABLE: 1988


(1) Indexes in this table are derived from the industry indexes in table 5 of the Bureau of Labor Statistics periodical Producer Price Indexes. Industries are allocated to stages of process based on inter-industry shipment patters from the 1977 input/output relationships.

(2) All data are subject to revision 4 months after original publication. Data are not seasonally adjusted.

TABLE: Table 5. Producer Price Indexes and percent changes for net material inputs to industry stage of process and final demand (June 1987=100)
 TABLE: Unadjusted
 TABLE: Relative Index(2) 12
 TABLE: Grouping(1) importance, months
 TABLE: December ending
 TABLE: 1987 October January February February
 TABLE: 1987(2) 1988(2) 1988(2) 1988
 TABLE: Unadjusted percent changes
 TABLE: 3 months ending -- January TABLE: Gr
ouping(1) 1988
 TABLE: May August November February to
 TABLE: 1987 1987 1987 1988 February TABLE:
 1988


(1) Indexes in this table are derived from the product indexes in table 5 of the Bureau of Labor Statistics publication Producer Price Indexes. These indexes are composed of the goods used by the industries in each of the idnustry stage of process output indexes as shown by the 1977 input/output relationships. These material inputs include only domestic input and do not include any imported materials which may be used.

(2) All data are subject to revision 4 months after original publication. Data are not seasonally adjusted.

Exhibit 1. Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry

Exhibit 1. Continued -- Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry

Exhibit 1. Continued -- Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry

Exhibit 1. Continued -- Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry

Exhibit 1. Continued -- Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry

Exhibit 1. Continued -- Final allocation of Producer Price Index industries by stage of process

TABLE:

TABLE: SIC Industry SIC Industry
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Author:Gaddie, Robert; Zoller, Maureen
Publication:Monthly Labor Review
Date:Apr 1, 1988
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