Producer Price Indexes

PPI Updates the Publication Structure for Material and Supply Inputs to Construction Industries

Effective with the release of Producer Price Index (PPI) data for July 2010, on August 17, 2010, the publication structure for Material and Supply Inputs to Construction Industries, which appears in Table 9 of the PPI Detailed Report has been modified. These indexes are derived from industry-based, primary product PPIs, and the weights used to develop this model are based on 2002 benchmark input/output relationship data from the Bureau of Economic Analysis (BEA). The modifications to the Table 9 indexes were necessary based on structural changes to the 2002 input/output relationship data compiled and published by BEA. The PPIs that constitute the Table 9 structure measure changes in net selling prices for materials and supplies typically sold to the construction sector. Services and capital investment indexes are excluded from this publication model.

The two tables that follow present the changes to the Table 9 structure effective with this report. In summary, the update has resulted in four index deletions, four index introductions, and one index recoding.

Previous Table 9 Publication Structure

Code Title Status

BCON

Inputs to construction industries

no change

BNEW

New construction

no change

BRS1

Single-unit residential

recoded to BRES

BRSM

Multi-unit residential

discontinued

BBLD

Non-residential buildings

discontinued

BHWY

Highway and street construction

discontinued

BHVY

Other heavy construction

discontinued

BMRP

Maintenance and repair construction

no change

BMNR

Nonresidential

no change

BMRS

Residential

no change

Updated Table 9 Publication Structure

Code Title Status

BCON

Inputs to construction industries

no change

BNEW

New construction

no change

BRES

Residential construction

recoded from BRS1

BNON

Non-residential construction

added

BNCS

Commercial structures

added

BNIS

Industrial structures

added

BONS

Other nonresidential construction

added

BMRP

Maintenance and repair construction

no change

BMNR

Nonresidential

no change

BMRS

Residential

no change

The index code BRES, which measures changes in selling prices for material and supply inputs to new residential construction as a whole, has been designated as continuous with the previous index for new single-unit residential construction, BRS1. Although the updated index encompasses material and supply inputs for both new multi-unit and single-unit residential construction projects, at the time of the data conversion material and supply inputs to new single-unit residential construction made up about 90 percent of the combined total. As a result, PPI attached the historical index values from the BRS1 index to the replacement index BRES. Data users that have been employing the now-discontinued index for new multi-unit residential construction (BRSM) will find that the BRES index is the nearest available substitute.

Regarding the other changes to this publication structure, the discontinued index for material and supply inputs to new non-residential building construction (BBLD) has been replaced by two indexes, commercial structures (BNCS) and industrial structures (BNIS). The newly added index for material and supply inputs for other new nonresidential construction (BONS) encompasses activities that previously were categorized under material and supply inputs to highway and street construction (BHWY) and other heavy construction (BHVY). Examples of construction activities that would fall under BONS include water and sewer lines and related construction; oil and gas pipelines and related construction; power and communication line and related construction; highway, street, and bridge construction; and airport runway, dam, dock, tunnel, and flood control construction.

For more information about changes to the PPI publication structure for material and supply inputs to construction industries, including relative importance figures for component indexes within this structure, contact the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.

Last Modified Date: August 17, 2010

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