Industry-based PPI
Industry-based PPIs are organized by type of
industry, rather than by type of product and end use as the commodities-based PPIs are. Chapter 14 of the BLS Handbook of [PPI] Methods
explains further:
Industry
classification. A Producer Price Index for an industry is a measure of changes in prices received for the industry’s output
sold outside the industry (that is, its net output). Measures—or indexes—of price change classified by industry form the basis of
the program. These indexes reflect the price trends of a constant set of goods and services that together represent the total output
of an industry. Standardized industry index codes provide comparability with a wide assortment of industry-based data for other economic
phenomena, including productivity, production, employment, wages, and earnings.
In general, there may be as many as three kinds of product price indexes for a given industry. Every industry has primary product indexes
to show changes in prices received by establishments classified in the industry for products made primarily, but not necessarily exclusively, by
that industry. The industry under which an establishment is classified is determined by those products that account for the largest share of the
establishment’s total value of shipments. In addition, most industries have secondary product indexes to show changes in prices received by establishments
classified in the industry for products made chiefly in some other industry. Finally, some industries may have miscellaneous receipts indexes to show price
changes in other sources of revenue received by establishments within the industry.
31171 Seafood Product Preparation and Packaging
This industry comprises establishments primarily engaged in one or more of the following: (1) canning seafood (including soup); (2) smoking, salting, and
drying seafood; (3) eviscerating fresh fish by removing heads, fins, scales, bones, and entrails; (4) shucking and packing fresh shellfish; (5) processing
marine fats and oils; and (6) freezing seafood. Establishments known as "floating factory ships" that are engaged in the gathering and processing of seafood
into canned seafood products are included in this industry.
311711 Seafood Canning
This U.S. industry comprises establishments primarily engaged in (1) canning seafood (including soup) and marine fats and oils and/or (2) smoking, salting, and drying
seafood. Establishments known as "floating factory ships" that are engaged in the gathering and processing of seafood into canned seafood products are included in this
industry.
311712 Fresh and Frozen Seafood Processing
This U.S. industry comprises establishments primarily engaged in one or more of the following: (1) eviscerating fresh fish by removing heads, fins, scales, bones, and
entrails; (2) shucking and packing fresh shellfish; (3) manufacturing frozen seafood; and (4) processing fresh and frozen marine fats and oils.
322211 Corrugated and Solid Fiber Box Manufacturing
This U.S. industry comprises establishments primarily engaged in laminating purchased paper or paperboard into corrugated or solid fiber boxes and related products, such as pads, partitions, pallets,
and corrugated paper without manufacturing paperboard. These boxes are generally used for shipping.
324110 Petroleum Refineries
This industry comprises establishments primarily engaged in refining crude petroleum into refined petroleum. Petroleum refining involves one or more of the following activities: (1) fractionation; (2) straight
distillation of crude oil; and (3) cracking.
Industry-Based Stage-of-Process Classification
Chapter 14 of the BLS Handbook of [PPI] Methods
explains the stage-of-process classification system.
Industry-based
stage-of-process classification. Commodity-based SOP price indexes regroup commodities at the subproduct
class (six-digit) level, according to the class of buyer and the amount of physical processing or assembling the products have undergone.
Finished goods are defined as commodities that are ready for sale to the final-demand user—either an individual consumer or a business firm.
In national income accounting terminology, the Finished Goods Price Index roughly measures changes in prices received by producers for two portions
of the gross national product: (1) Personal consumption expenditures on goods and (2) Capital investment expenditures on equipment.5 Within the Finished
Goods Price Index, the consumer foods category includes unprocessed foods, such as eggs and fresh fruits, as well as processed foods, such as bakery products
and meats. The finished energy goods component includes those types of energy to be sold to households—primarily gasoline, home heating oil, residential gas,
and residential electricity. The category for consumer goods other than foods and energy includes durables such as passenger cars and household furniture and
nondurables such as apparel and prescription drugs. The capital equipment index measures changes in prices received by producers of durable investment goods
such as heavy motor trucks, tractors, and machine tools.
The category of intermediate materials, supplies, and components consists partly of already processed commodities that still 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 goods 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 defined as unprocessed commodities not sold directly to consumers. Crude foodstuffs and feedstuffs include items such as
grains and livestock. The crude energy goods category consists of crude petroleum, natural gas to pipelines, and coal. Examples of crude nonfood materials other than
energy include raw cotton, construction sand and gravel, and iron and steel scrap.
Many major commodity-based SOP price indexes exist continuously back to 1947. However, some special groupings within this system (such as finished goods less foods
and energy) were first calculated in the 1970s and have no historical record before then.
