U.S. producer prices fell an unexpected 0.3 percent in December after being unchanged in November, the Labor Department said Friday.
The adjusted index for finished goods was 296.8 percent of its 1967 average in December, down from an adjusted 297.6 percent in November.This translates into an adjusted annual decline of 3.2 percent for
December. Wholesale prices rose 2.2 percent for all of 1987.
Labor said lower prices for food and energy accounted for most of the
December decline in the producer price index for finished goods, and the index for consumer goods other than foods and energy rose 0.5 percent.
The producer price index declined 2.3 percent during 1986, and with the 2.2 percent increase in 1987, it now stands at about the same level as in
December 1985, Labor said.
Finished energy prices rose 10.2 percent in 1987, after a 38.0 percent decline in 1986. Food prices were down 0.2 percent in 1987, after rising 2.9 percent in 1986.
The index for other finished goods rose 2.1 percent in 1987, down from a 2.7 percent increase in 1986, largely because of a downturn in the index for motor vehicles, Labor said.
The producer price index for intermediate goods rose an adjusted 0.2 percent in December after rising 0.4 percent in November. For all of 1987, the intermediate goods index rose 5.6 percent.
The index for crude goods was down 0.3 percent, after falling 1.7 percent the month before, and for the year it increased 8.8 percent.
Rose 0.2 percent in December
WASHINGTON - U.S. industrial production rose a seasonally adjusted 0.2 percent in December after increasing 0.4 percent in November, the Federal Reserve Board said Friday.
The Fed did not revise the November gain, but October production, earlier reported at up 1.4 percent, was revised to a 1.1 percent advance.
The December gain put the Fed's index of the output of U.S. factories, mines and utilities at 133.3 percent of the 1977 average, up 5.2 percent from
December 1986. The index was a revised 133.1 percent in November.
The Fed said the December production increase reflected continuing gains in materials and supplies for construction and business, as well as widespread increases in home goods and non-durable consumer goods. Auto production was lower.
Consumer goods output rose 0.1 percent after a revised 0.2 percent rise in November. Durable consumer goods output was down 1.1 percent, compared with a flat performance in November. Non-durable goods production rose 0.5 percent last month, compared with the revised November increase of 0.3 percent.
Autos were assembled at an annual rate of 6.5 million units, a 9 percent retreat from the November rate of 7.1 million.
WASHINGTON - U.S. business inventories rose 0.8 percent in November to a seasonally adjusted $695.496 billion, following a revised 1.1 percent advance to $689.926 billion in October, the Commerce Department said Friday.
October inventories earlier were reported up 0.8 percent at $687.872 billion. November inventories were up 6.1 percent from a year earlier, Commerce said.