PPI Updates Commodity Weight Allocations for the Final Demand–Intermediate Demand Aggregation Structure : U.S. Bureau of Labor Statistics

2022-04-22 20:54:10 By : Admin

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Effective with the release of January 2021 data on February 17, 2021, the Bureau of Labor Statistics (BLS) updated the weight allocations used to calculate its Final Demand–Intermediate Demand (FD–ID) Producer Price Indexes (PPI). PPI weights continue to be based on shipment values from the 2012 economic census. However, to more accurately reflect recent sales patterns, BLS changed the proportion of these weights allocated to the various FD–ID categories to base them on data published in the 2012 Input–Output (I–O) Accounts from the Bureau of Economic Analysis (BEA). The allocations were previously based on the 2007 I-O Accounts. This update affects all portions of the PPI FD-ID system: final demand indexes, intermediate demand by commodity type indexes, and intermediate demand by production flow indexes.

This notice discusses updates to final demand and intermediate demand by commodity type indexes together and then describes updates to the intermediate demand by production flow indexes.[1]

The allocation update will not change the PPI classification system, reference base, aggregation structure, or historical index data. The update does cause some significant, though not unexpected, shifts in the relative importance of component series in the FD–ID system. Appendix A of this report presents some of these more noteworthy shifts.

The primary data source used in the weight allocations of the PPI commodity FD–ID indexes by commodity type is the Use of commodities by industries, before redefinition table (hereafter known as the use table). [2] The use table shows—for each commodity group—the dollar value (in millions of dollars at producers' prices) used by each industry and final user.

BLS analysts convert these dollar values of use to percentages and sum them to 100 percent for each I–O commodity group. Analysts truncate individual values of less than 0.5 percent and normalize the residual values.

BLS analysts then determine the FD–ID categories that correspond to the uses of each commodity group in the I–O table. Next, analysts analyze each detailed record on the I–O table and assign it to one or more of the detailed FD–ID codes. These assignments combine information about the type of use indicated in the table and informed judgment by BLS analysts relating to definitions of the FD–ID categories. The next section of this article includes these definitions. Only the lowest level FD–ID codes are used in the assignment process. Analysts do not make direct assignments to the higher level FD–ID codes (for example, FD4 Final Demand). These higher level indexes are calculated through aggregation of the lower level FD–ID indexes.

To make the FD–ID assignments, the analyst determines

BLS analysts assign FD–ID weight allocations at the PPI 6-digit commodity group level, because this is the level used for building the lowest level FD–ID indexes. In the next step, analysts match the 6-digit PPI codes with I–O codes in the BEA use table, using a concordance between the PPI and the North American Standard Industrial Classification System (NAICS). BEA I–O data are generally classified according to NAICS. BEA provides a concordance between the NAICS and the I–O industry and commodity codes, which further enhances the match. Next, BLS analysts apply the percentage allocations by FD–ID for each PPI 6-digit code to the total value weight of the 6-digit commodity. The resultant products are used in their respective FD–ID aggregations for index calculation. Relative importance weights are then calculated for component 6-digit series in the PPI by FD–ID. [3]

Type of buyer and type of commodity are two concepts inherent in the Final Demand—Intermediate Demand by Commodity Type categorization.

The two main buyer types are final-demand buyers and intermediate-demand buyers.

The four main type of commodities are unprocessed goods, processed goods, services, and construction.

The Final Demand–Intermediate Demand (by commodity type) system consists of five major portions differentiated by the type of commodity and class of buyer. The five major FD–ID categories are processed goods for intermediate demand; unprocessed goods for intermediate demand; services for intermediate demand; construction for intermediate demand, and final demand.

The full Final Demand–Intermediate Demand by Commodity Type structure is provided below. Direct weight allocations are made to the FD–ID categories which are italicized. Definitions of the detailed indexes follow the listing of their respective structure.

Processed Goods for Intermediate Demand

 Materials and Components for Manufacturing

  Materials for Manufacturing

   Materials for Food Manufacturing

   Materials for Nondurable Manufacturing

   Materials for Durable Manufacturing

  Components for Manufacturing

   Components for Nondurable Manufacturing

   Components for Durable Manufacturing

 Materials and Components for Construction

  Materials for Construction

  Components for Construction

Processed Fuels and Lubricants for Intermediate Demand

  Processed Fuels and Lubricants for Manufacturing Industries

  Processed Fuels and Lubricants for Nonmanufacturing Industries

 Containers for Intermediate Demand

 Supplies for Intermediate Demand

  Supplies to Manufacturing Industries

  Supplies to Nonmanufacturing Industries

   Supplies to Nonmanufacturing Industries, Feeds

   Supplies to Nonmanufacturing Industries, Other than Feeds

contains partially processed food products that must undergo further preparation before reaching the final customer. Examples of materials for food manufacturing include milk products, canned or frozen fruits and vegetables, processed sugars, and certain chemicals.

contains partially processed products that will undergo further preparation or usage in the manufacture of goods which have a life expectancy of less than 3 years. Examples of materials for nondurables manufacturing include cotton yarn used for shirts and woodpulp used to make paper.

contains partially processed products that will undergo further preparation or usage in the manufacture of goods that have a life expectancy of more than 3 years. Examples of materials for durable manufacturing include textile materials, lumber, metals, and cement.

includes products, such as buttons and springs that are completely finished except for installation or assembly into a larger nondurable item. Nondurable goods are considered to have a life expectancy of less than 3 years.

includes products, such as pumps, valves, and fittings that are completely finished except for installation or assembly into a larger durable item. Durable goods are considered to have a life expectancy of 3 years or more.

includes partially finished products that will undergo further preparation into a construction product. This usage is specifically defined in the I-O tables. Examples include lumber, concrete pipe, and architectural coatings.

includes completely finished products that will undergo installation into a construction product. This usage is specifically defined in the I–O tables. Examples include metal doors and water heaters.

includes fuel and related products used in manufacturing industries to generate heat and power and for lubrication. Examples include industrial electric power, industrial natural gas, gasoline, diesel fuel, and greases and oils.

includes fuel and related products used in nonmanufacturing industries to generate heat and power and for lubrication. Examples include commercial electric power, commercial natural gas, jet fuel, diesel fuel, and greases and oils.

contains paper, wood, plastic, metal, and glass receptacles used to ease the transport of unwieldy items.

includes products consumed in the manufacturing industries during the course of production or distribution of other items but not physically incorporated in those items. These products are distinguished from capital equipment in that they are not amortized. Examples of supplies for manufacturing industries include plastic packaging, small cutting tools, and machinery.

includes feed products consumed by animals in the livestock industry. Examples of manufactured animal feeds include poultry feed, hog feed, vegetable cakes, and meal fee.

includes products used in the nonmanufacturing sector other than the animal feed industry, which are consumed during the course of production or distribution of other items but not physically incorporated in those items. Examples include sedatives for hospitals, tires, motor vehicle parts for auto repair shops, and photographic supplies.

 Unprocessed Foodstuffs and Feedstuffs

  Unprocessed Nonfood Materials, Except Fuel

   Unprocessed Nonfood Materials, Except Fuel to Manufacturing Industries

   Unprocessed Nonfood Materials, Except Fuel to Nonmanufacturing Industries

   Unprocessed Fuel to Manufacturing Industries

   Unprocessed Fuel to Nonmanufacturing Industries

contains basic agricultural products that will undergo some processing prior to becoming completed food products, as well agricultural products consumed directly by the agricultural sector. Examples include fresh fruit that will be canned or raw corn consumed by livestock as animal feed. Other examples would be cattle, hogs, or chickens intended for slaughter, or raw cane sugar that will be refined.

contains minerals, agricultural products, and scrap materials that are intended to be used in a manufacturing process other than manufacturing of foods. Raw cotton that will be turned into yarn, or aluminum base scrap that will end up as refined aluminum, are examples of this category. Crude petroleum is contained in this grouping rather than in Crude Fuels, because it is not used as a fuel in its crude state; it can be used as a raw material in manufacturing (for example, synthetic rubber or pharmaceuticals). Also included in the category are agricultural inputs to manufactures of pet foods and alcoholic beverages.

includes products such as sand, gravel, and crushed stone primarily used in the construction industry.

contains unrefined energy sources, specifically coal and natural gas, used to generate heat and power in manufacturing industries.

includes coal and natural gas used to generate heat and power in nonmanufacturing industries.

 Services less Trade, Transportation, and Warehousing for Intermediate Demand

  Services less Trade, Transportation, and Warehousing for Manufacturing Industries

  Services less Trade, Transportation, and Warehousing for Nonmanufacturing Industries

 Transportation and Warehousing Services for Intermediate Demand

  Transportation of Passengers for Intermediate Demand

   Transportation of Passengers for Manufacturing Industries

   Transportation of Passengers for Nonmanufacturing Industries

  Transportation and Warehousing of Goods for Intermediate Demand

   Transportation of Goods for Manufacturing Industries

   Transportation of Goods for Nonmanufacturing Industries

 Trade Services for Intermediate Demand

  Trade Services for Manufacturing Industries

  Trade Services Nonmanufacturing Industries

includes services used by the manufacturing sector other than trade and transportation services. Examples include manufacturing services, such as contract work on textiles and metal coating and allied services, as well as other types of services, including engineering services, truck rental, and software publishing.

includes services used by nonmanufacturing sectors other than trade and transportation services. Financial services, legal services, architectural services, consulting services, and telecommunication services are examples.

composed of business travel services, including railroad and airline passenger services, purchased by nonmanufacturing industries.

includes shipping, services related to shipping, and warehousing services for goods sold to manufacturing industries. Examples include pipeline transportation of petroleum products, long-distance motor carrying, and rail transportation of freight and mail.

includes shipping, services related to shipping, and warehousing services for goods sold to nonmanufacturing industries. Examples include U.S. Postal Service, air transportation of freight, courier and messenger services, and marine cargo handling.

contains retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Parts and supplies for machinery and equipment wholesaling; metals, mineral, and ores wholesaling; and paper and plastics wholesaling are examples of trade services for manufacturing industries.

contains retail and wholesale trade services for goods sold to nonmanufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include hardware and building materials and supplies retailing, chemicals and allied products wholesaling, and automotive parts retailing.

includes maintenance and repair construction purchased by businesses as inputs to construction. Note that all new construction is defined as capital investment and is included under final demand.

  Final Demand Foods

   Finished Consumer Foods

    FD41112

    Finished Consumer Foods, Processed

    FD41113

    Finished Consumer Foods, Crude

   Government Purchased Foods

   Foods for Export

  Final Demand Energy

   Finished Consumer Energy Goods

   Government Purchased Energy

   Energy for Export

  Final Demand Goods less Foods and Energy

   Finished Goods less Foods and Energy

    FD41311

    Finished Consumer Goods less Foods and Energy

     FD413111

     Nondurable Consumer Goods less Foods and Energy

     FD413112

     Durable Consumer Goods

    FD41312

    Private Capital Equipment

     FD413121

     Private Capital Equipment for Manufacturing Industries

     FD413122

     Private Capital Equipment for Nonmanufacturing Industries

   Government Purchased Goods Excluding Foods and Energy

    FD41321

    Government Purchased Goods Excluding Foods, Energy, and Capital Equipment

    FD41322

    Government Purchased Capital Equipment

   Goods for Export excluding Foods and Energy

  Final Demand Services less Trade, Transportation, and Warehousing

   Finished Services less Trade, Transportation, and Warehousing

    FD42111

    Finished Consumer Services less Trade, Transportation, and Warehousing

    FD42112

    Private Capital Investment Services less Trade, Transportation, and Warehousing

   Government Purchased Services less Trade, Transportation, and Warehousing

    FD42121

    Government Purchased Services less Trade, Transportation, and Warehousing excluding Capital Investment

    FD42122

    Government Purchased Capital Investment Services less Trade, Transportation, and Warehousing

   Services for Export less Trade, Transportation, and Warehousing

  Final Demand Transportation and Warehousing Services

   Transportation of Passengers for Final Demand

    FD42211

    Transportation of Private Passengers

    FD42212

    Transportation of Government Passengers

    FD42213

    Transportation of Passengers for Export

   Transportation and Warehousing of Goods for Final Demand

    FD42221

    Transportation and Warehousing of Finished Goods

     FD422211

     Transportation and Warehousing of Personal Consumption Goods

     FD422212

     Transportation and Warehousing of Private Capital Equipment

    FD42222

    Transportation and Warehousing of Government Purchased Goods

    FD42223

    Transportation and Warehousing of Exports

  Final Demand Trade Services

   Trade of Finished Goods

    FD42311

    Trade of Personal Consumption Goods

    FD42312

    Trade of Private Capital Equipment

   Trade of Government Purchased Goods

    FD42321

    Trade of Government Purchased Goods Excluding Capital Equipment

   Trade of Government Purchased Capital Equipment

  Trade of Exports

  Construction for Private Capital Investment

  Construction for Government

contains prepared food products that go directly to the consumer. Examples of processed finished foods include bread, packaged fluid milk and related products, candy and nuts, and carbonated drinks.

contains basic food products such as fresh fruits and vegetables that are used in an unprocessed state by the consumer.

includes both processed and unprocessed foods purchased by government.

includes both processed and unprocessed foods sold as export. Examples include oilseeds, corn, and beef and veal.

made up of energy goods, such as residential electric power, residential natural gas, gasoline, and home heating oil, purchased by consumers.

includes energy goods purchased by the government. Examples of government purchased energy goods are jet fuel and diesel fuel.

composed of energy goods sold as exports. Jet fuel, gasoline, and diesel fuel are examples of exported energy goods.

contains nonfood and non-energy products ready for final consumption, with a life expectancy of less than 3 years. Examples include alcoholic beverages, women’s apparel, and cigarettes.

contains nonfood and non-energy products ready for final consumption, with a life expectancy of more than 3 years. Examples include furniture, passenger cars, and appliances.

contains products that will undergo no further processing and are used to manufacture or transport other goods in the manufacturing sector. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I–O tables as Gross Private Fixed Investment. Examples of capital equipment for the manufacturing industry include industrial molds, motor trucks, tractors, and conveying equipment.

contains products that undergo no further processing and are used in the operation of nonmanufacturing industries. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I-O tables as Gross Private Fixed Investment. Examples of this category include telephone and telegraph equipment, office furniture, passenger cars bought by leasing companies, and civilian aircraft.

includes government-purchased durable and nondurable goods other than foods, energy, and capital equipment.

contains products that undergo no further processing and are used in the operation of the government. These products are distinguished by the fact that they are amortized over their useful lives and are identified in the I–O tables as Gross Government Fixed Investment. Examples include military aircraft, and search, detection, navigation, and guidance systems and equipment.

composed of unprocessed and processed goods, other than foods and energy, sold as exports. Raw cotton, chemicals, and civilian aircraft are examples of goods for export excluding foods and energy.

includes services other than trade and transportation services purchased by consumers, such as telecommunication services, medical care, insurance, and lodging.

composed of services other than trade, transportation, and warehousing services identified in the I–O tables as Gross Private Fixed Investment. Examples include engineering services, support activities for oil and gas operations, and system software publishing.

includes government-purchased services other than trade, transportation, warehousing, and capital investment services. Examples are legal services and telecommunications services.

composed of government-purchased services other that trade, transportation, and warehousing identified in the I–O tables as Gross Government Fixed Investment. Examples include software publishing and information technology support services.

includes services sold by domestic producers to foreigners other that trade, transportation, and warehousing services. Engineering services and securities, brokerage, and investment advice are examples.

includes consumer travel services, such as airline passenger services and rail transportation of passengers.

composed of travel services sold as exports. An example is airline passenger services.

includes shipping, services related to shipping, and warehousing services for goods eventually sold to consumers. Examples of transportation and warehousing of personal consumption goods are long distance motor carrying, deep sea water transportation of freight, and U.S. Postal Service.

includes shipping, services related to shipping, and warehousing services for goods sold as capital investment. This use category is identified in the I–O tables as Gross Private Fixed Investment.

includes shipping, services related to shipping, and warehousing services for goods sold to government.

includes shipping, services related to shipping, and warehousing services for goods sold as exports.

composed of retail and wholesale trade services for goods sold to manufacturing industries. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of personal consumption trade services are apparel wholesaling, food and alcohol retailing, and automotive fuels and lubricant retailing.

includes retail and wholesale trade services for goods sold as capital equipment. Machinery and equipment wholesaling, furnishings wholesaling, and automotive retailing represent examples of private capital equipment trade services.

composed of retail and wholesale trade services for goods sold to government other than capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include chemicals and allied products wholesaling and parts and supplies for machinery wholesaling.

includes retail and wholesale trade services for goods sold to government as capital equipment. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of a good. Examples of trade of government purchased capital investment are machinery and equipment wholesaling and furnishing wholesaling.

includes retail and wholesale trade services for goods sold as exports. For PPI purposes, trade services are a margin service, measured as the difference between selling and acquisition price of the good. Examples include machinery and equipment wholesaling and alcohol wholesaling.

includes construction identified in the I-O tables as Gross Private Fixed Investment. All new construction is identified in the I–O tables as fixed investment. Examples include new office building construction, new industrial building construction, and new healthcare building construction.

composed of all construction purchased by the government. New school building construction and maintenance and repair of nonresidential buildings are examples of construction for government.

The intermediate demand by production flow portion of the FD-ID system reorganizes into four stages of production the same set of intermediate demand commodities included in the intermediate demand by commodity type portion of the system. The stages are developed such that commodities in one stage are used as inputs to produce commodities in the next stage. The stage-based treatment of intermediate demand allows data users to study price transmission relationships between the intermediate stages of production as well as the relationship to final demand.

To construct the intermediate demand by production flow indexes, a five-step procedure is followed. The procedure utilizes both BEA Make of commodities by industries and Use of commodities by industries, before redefinition tables. Both tables are included in the Benchmark Input-Output Accounts of the United States, 2012, published by BEA. As stated earlier, Use of commodities by industries, before redefinition shows—for each commodity—the dollar value (in millions of dollars at producers’ prices) used by each industry and final user. The Make of commodities by industries table indicates the dollar value (in millions of dollars at producers’ prices) of each commodity made by each industry.

The first step in the procedure is to determine the total production of each industry in the economy. In general, industries are classified as primary producers of specific goods or services; however, industries may also be secondary producers of other goods or services. A firm classified in the automobile industry, for example, produces primarily automobiles, but the same firm may also produce and sell additional commodities, such as car parts, scrap metal, or car rentals. These additional commodities are classified as secondary production. The first step therefore requires determining both the primary production and secondary production of each industry in the economy. The 2012 BEA Make of commodities by industries table was used for this purpose.

The second step is to ascertain where the total output of each industry is consumed. This step requires determining, for each industry, the portion of the industry output consumed as final demand and the portion consumed as intermediate demand. For the intermediate-demand portion, determining which specific industries are consuming the industry’s output also is required. BEA 2012 Use of commodities by industries, before redefinition data were employed to make this determination.

The third step in developing stages is to assign industries to stages of production. Within a stage-based system, transactions can be classified as forward flow, backflow, or internal flow. Forward flow occurs when an industry sells its output to an industry classified in a forward stage of production (to be used as an input) or to final demand. Internal flow occurs when an industry sells its output to be used as an input by another industry classified within the same stage of production. Backflow occurs when an industry sells its output to be used as an input by an industry classified in an earlier stage of production in the system. To successfully develop a forward-flowing system of price change, industries should be assigned to stages in a manner that minimizes backflow and internal flow while maximizing forward flow within the system. Towards this end, PPI assigned all industries included in the BEA I-O tables to stages in a manner that attempted to maximize net forward flow of the system. Net forward flow is defined as:

The PPI program implements a two-step procedure to attempt to maximize net forward flow. In the first step, a set of rules is used to assign industries to stages and select the appropriate number of stages for the system. The system that the PPI program eventually chose is a four-stage system. The set of rules used to assign industries to the four stages is summarized as follows:

Before selecting the number of stages and set of rules just described, the PPI program examined many different sets of rules and numbers of stages. It eventually chose the aforementioned system because it maximized net forward flow as compared with other sets of rules examined. [4]

After the assignment of industries to stages by use of the aforementioned rules, the second step in the procedure to maximize net forward flow was to examine the effects on net forward flow of moving individual industries to stages other than that to which they were originally assigned. In cases in which there were substantial gains to net forward flow, industries were left in the new stage.

The PPI production-flow-based system exhibits strong forward flow and little backflow: 83.3 percent of transactions in the system are forward flowing, 5.6 percent are back flowing, and 11.1 percent are internally flowing.

The fourth step in constructing the production-flow-based intermediate demand indexes is to determine the commodities to be included and weights to be used in the intermediate demand indexes. The four main indexes in the production flow system are

These indexes track prices for the inputs consumed by industries in each of the four stages of production. They do not track prices for the output produced by industries in each of the four stages of production. For example, the stage 4 intermediate demand index tracks price change for inputs consumed by industries included in the fourth stage of production. Recall that industries classified in the fourth stage of production mostly produce goods sold to final demand. The stage 4 intermediate demand index therefore measures price change in the inputs to production of industries that produce primarily final-demand commodities.

The BEA Use of commodities by industries, before redefinition table is used to determine the set of commodities consumed by industries in each of the four stages. The use table indicates the commodities consumed by industries in terms of BEA I-O codes. Since FD-ID indexes are constructed from 6-digit PPI commodity group level indexes, BEA I-O codes are matched to 6-digit PPI codes through use of a concordance between the PPI commodity codes and BEA I-O data. In the end, through the BEA use table and the PPI/I-O concordance, the set of 6-digit PPI commodities consumed by each stage is determined, and these are the commodities that compose each of the four stages of intermediate demand included in the production flow model. The final step in developing the production flow indexes is to convert the indexes from gross weighted indexes to net weighted indexes. Net weighting is accomplished by removing transactions in which an input is both produced and consumed within a given stage. Net weighting eliminates multiple counting of price change from the production flow price indexes. Net weights are developed using both the BEA Use of commodities by industries and Make of commodities by industries tables.

Appendix B, Table 1 presents the updated industry stage assignments based on 2007 I-O data. Appendix B, Table 2 presents shifts in industry stage assignments between 2002 and 2007 I-O data.

Prepared bituminous coal and lignite

Trucks, truck tractors, & bus chassis 14,000 lb or less, incl. minivans & suvs

Affiliate agreements, programming sales, and retransmission fees for cable and broadcast tv

Internet advertising sales, excluding Internet advertising sold by print publishers

Securities brokerage, dealing, and investment advice

Administrative and general management consulting services

Processed Goods for Intermediate Demand

Pharmaceuticals acting on the central nervous system and the sense organs

Sanitary paper products, including stock

Other aircraft parts and equipment

Unprocessed Goods for Intermediate Demand

Prepared bituminous coal and lignite

Affiliate agreements, programming sales, and retransmission fees for cable and broadcast tv

Internet advertising sales, excluding Internet advertising sold by print publishers

Cellular phone and other wireless telecommunication services

Securities brokerage, dealing, and investment advice

The following table presents the final industry stage assignments of the PPI production flow model on the basis of 2012 BEA I–O data. Stage 1 includes 65 industries, stage 2 contains 76 industries, stage 3 includes 125 industries, and stage 4 contains 133 industries.

Support activities for agriculture and forestry

Copper, nickel, lead, and zinc mining

Synthetic dye and pigment manufacturing

Other Basic Inorganic Chemical Manufacturing

Pesticide and other agricultural chemical manufacturing

Laminated plastics plate, sheet (except packaging), and shape manufacturing

Lime and gypsum product manufacturing

Ground or treated mineral and earth manufacturing

Steel product manufacturing from purchased steel

Alumina refining and primary aluminum production

Secondary smelting and alloying of aluminum

Nonferrous Metal (except Aluminum) Smelting and Refining

Copper rolling, drawing, extruding and alloying

Nonferrous metal (except copper and aluminum) rolling, drawing, extruding and alloying

Spring and wire product manufacturing

Coating, engraving, heat treating and allied activities

Manufacturing and reproducing magnetic and optical media

Carbon and graphite product manufacturing

Wholesale electronic markets and agents and brokers

Cable and other subscription programming

Insurance agencies, brokerages, and related activities

Commercial and industrial machinery and equipment rental and leasing

Accounting, tax preparation, bookkeeping, and payroll services

Advertising, public relations, and related services

Management of companies and enterprises

Services to buildings and dwellings

Independent artists, writers, and performers

Commercial and industrial machinery and equipment repair and maintenance

Personal and household goods repair and maintenance

Iron, gold, silver, and other metal ore mining

Other nonmetallic mineral mining and quarrying

Scenic and sightseeing transportation and support activities for transportation

Monetary authorities and depository credit intermediation

Other computer related services, including facilities management

Environmental and other technical consulting services

All other miscellaneous professional, scientific, and technical services

Dairy cattle and milk production

Electric power generation, transmission, and distribution

Soybean and other oilseed processing

Fiber, yarn, and thread mills

Textile and fabric finishing and fabric coating mills

Veneer, plywood, and engineered wood product manufacturing

Paper Bag and Coated and Treated Paper Manufacturing

All other converted paper product manufacturing

Other petroleum and coal products manufacturing

Plastics material and resin manufacturing

Plastics packaging materials and unlaminated film and sheet manufacturing

Iron and steel mills and ferroalloy manufacturing

Metal crown, closure, and other metal stamping (except automotive)

Ornamental and architectural metal products manufacturing

Turned product and screw, nut, and bolt manufacturing

Plumbing fixture fitting and trim manufacturing

Ball and roller bearing manufacturing

Fabricated pipe and pipe fitting manufacturing

Industrial and commercial fan and blower and air purification equipment manufacturing

Speed changer, industrial high-speed drive, and gear manufacturing

Mechanical power transmission equipment manufacturing

Semiconductor and related device manufacturing

Printed circuit assembly (electronic assembly) manufacturing

Communication and energy wire and cable manufacturing

Motion picture and video industries

Internet publishing and broadcasting and Web search portals

Lessors of nonfinancial intangible assets

Architectural, engineering, and related services

Waste management and remediation services

Electronic and precision equipment repair and maintenance

Beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming

Animal production, except cattle and poultry and eggs

Synthetic rubber and artificial and synthetic fibers and filaments manufacturing

All other chemical product and preparation manufacturing

Aluminum product manufacturing from purchased aluminum

All other forging, stamping, and sintering

Other durable goods merchant wholesalers

Other nondurable goods merchant wholesalers

Directory, mailing list, and other publishers

Nondepository credit intermediation and related activities

Insurance carriers, except direct life

State and local government electric utilities

Fruit and tree nut farming

Greenhouse, nursery, and floriculture production

Water, sewage and other systems

Flour milling and malt manufacturing

Fats and oils refining and blending

Sugar and confectionery product manufacturing

Dry, condensed, and evaporated dairy product manufacturing

Ice cream and frozen dessert manufacturing

Seafood product preparation and packaging

Flavoring syrup and concentrate manufacturing

Asphalt paving mixture and block manufacturing

Asphalt shingle and coating materials manufacturing

Other basic organic chemical manufacturing

Biological product (except diagnostic) manufacturing

Plastics pipe, pipe fitting, and unlaminated profile shape manufacturing

Urethane and other foam product (except polystyrene) manufacturing

Rubber and plastics hoses and belting manufacturing

Clay product and refractory manufacturing

Glass and glass product manufacturing

Concrete pipe, brick, and block manufacturing

Cut stone and stone product manufacturing

Plate work and fabricated structural product manufacturing

Power boiler and heat exchanger manufacturing

Metal tank (heavy gauge) manufacturing

Metal can, box, and other metal container (light gauge) manufacturing

Other commercial and service industry machinery manufacturing

Heating equipment (except warm air furnaces) manufacturing

Air conditioning, refrigeration, and warm air heating equipment manufacturing

Computer terminals and other computer peripheral equipment manufacturing

Totalizing fluid meter and counting device manufacturing

Electricity and signal testing instruments manufacturing

Electric lamp bulb and part manufacturing

Other major household appliance manufacturing

Switchgear and switchboard apparatus manufacturing

Relay and industrial control manufacturing

All other miscellaneous electrical equipment and component manufacturing

Motor vehicle gasoline engine and engine parts manufacturing

Motor vehicle electrical and electronic equipment manufacturing

Motor vehicle transmission and power train parts manufacturing

Motor vehicle seating and interior trim manufacturing

Other Motor Vehicle Parts Manufacturing

Aircraft engine and engine parts manufacturing

Other aircraft parts and auxiliary equipment manufacturing

Wood kitchen cabinet and countertop manufacturing

Showcase, partition, shelving, and locker manufacturing

Surgical and medical instrument manufacturing

Surgical appliance and supplies manufacturing

Dental equipment and supplies manufacturing

Office supplies (except paper) manufacturing

Motor vehicle and motor vehicle parts and supplies

Professional and commercial equipment and supplies

Household appliances and electrical and electronic goods

Drugs and druggists’ sundries

Grocery and related product wholesalers

Motor vehicle and parts dealers

Building material and garden equipment and supplies dealers

Transit and ground passenger transportation

Wireless telecommunications carriers (except satellite)

Data processing, hosting, and related services

Automotive equipment rental and leasing

Travel arrangement and reservation services

Other ambulatory health care services

Fluid milk and butter manufacturing

Animal (except poultry) slaughtering, rendering, and processing

All other wood product manufacturing

Valve and fittings other than plumbing

Cutting and machine tool accessory, rolling mill, and other metalworking machinery manufacturing

Motor vehicle steering, suspension component (except spring), and brake systems manufacturing

Propulsion units and parts for space vehicles and guided missiles

Office furniture and custom architectural woodwork and millwork manufacturing

News syndicates, libraries, archives and all other information services

Securities and commodity contracts intermediation and brokerage

General and consumer goods rental

Promoters of performing arts and sports and agents for public figures

All other food and drinking places

State and local government passenger transit

Other state and local government enterprises

Drilling oil and gas wells

Dog and cat food manufacturing

Fruit and vegetable canning, pickling, and drying

Bread and bakery product manufacturing

Soft drink and ice manufacturing

Leather and allied product manufacturing

Soap and cleaning compound manufacturing

Farm machinery and equipment manufacturing

Lawn and garden equipment manufacturing

Mining and oil and gas field machinery manufacturing

Optical instrument and lens manufacturing

Photographic and photocopying equipment manufacturing

Special tool, die, jig, and fixture manufacturing

Turbine and turbine generator set units manufacturing

Air and gas compressor manufacturing

Industrial process furnace and oven manufacturing

Broadcast and wireless communications equipment

Audio and video equipment manufacturing

Electromedical and electrotherapeutic apparatus manufacturing

Search, detection, and navigation instruments manufacturing

Industrial process variable instruments manufacturing

Household refrigerator and home freezer manufacturing

Power, distribution, and specialty transformer manufacturing

Light truck and utility vehicle manufacturing

Travel trailer and camper manufacturing

Guided missile and space vehicle manufacturing

Motorcycle, bicycle, and parts manufacturing

Military armored vehicle, tank, and tank component manufacturing

All other transportation equipment manufacturing

Nonupholstered wood household furniture manufacturing

Other furniture related product manufacturing

Sporting and athletic goods manufacturing

Doll, toy, and game manufacturing

Health and personal care stores

Clothing and clothing accessories stores

Funds, trusts, and other financial vehicles

Scientific research and development services

Offices of other health practitioners

Museums, historical sites, zoos, and parks

Gambling industries (except casino hotels)

Other amusement and recreation industries

Other support activities for mining

Transportation structures and highways and streets

Cookie, cracker, pasta, and tortilla manufacturing

Ammunition, arms, ordnance, and accessories manufacturing

Pump and pumping equipment manufacturing

Other general purpose machinery manufacturing

Watch, clock, and other measuring and controlling device manufacturing

Satellite, telecommunications resellers, and all other telecommunications

Junior colleges, colleges, universities, and professional schools

Nursing and community care facilities

Residential mental health, substance abuse, and other residential care facilities

Community food, housing, and other relief services, including rehabilitation services

Grantmaking, giving, and social advocacy organizations

Civic, social, professional, and similar organizations

To examine industry shifts resulting from the FD-ID allocations update, the following table compares industry stage assignments, based 2007 I-O data, with the current assignments, based on 2012 I-O data.

Fruit and tree nut farming

Greenhouse, nursery, and floriculture production

Dairy cattle and milk production

Beef cattle ranching and farming, including feedlots and dual-purpose ranching and farming

Animal production, except cattle and poultry and eggs

Support activities for agriculture and forestry

Copper, nickel, lead, and zinc mining

Iron, gold, silver, and other metal ore mining

Other nonmetallic mineral mining and quarrying

Drilling oil and gas wells

Other support activities for mining

Electric power generation, transmission, and distribution

Water, sewage and other systems

Transportation structures and highways and streets

Dog and cat food manufacturing

Flour milling and malt manufacturing

Soybean and other oilseed processing

Fats and oils refining and blending

Sugar and confectionery product manufacturing

Fruit and vegetable canning, pickling, and drying

Dry, condensed, and evaporated dairy product manufacturing

Fluid milk and butter manufacturing

Ice cream and frozen dessert manufacturing

Animal (except poultry) slaughtering, rendering, and processing

Seafood product preparation and packaging

Bread and bakery product manufacturing

Cookie, cracker, pasta, and tortilla manufacturing

Flavoring syrup and concentrate manufacturing

Soft drink and ice manufacturing

Fiber, yarn, and thread mills

Textile and fabric finishing and fabric coating mills

Leather and allied product manufacturing

Veneer, plywood, and engineered wood product manufacturing

All other wood product manufacturing

Paper Bag and Coated and Treated Paper Manufacturing

All other converted paper product manufacturing

Asphalt paving mixture and block manufacturing

Asphalt shingle and coating materials manufacturing

Other petroleum and coal products manufacturing

Synthetic dye and pigment manufacturing

Other Basic Inorganic Chemical Manufacturing

Other basic organic chemical manufacturing

Plastics material and resin manufacturing

Synthetic rubber and artificial and synthetic fibers and filaments manufacturing

Pesticide and other agricultural chemical manufacturing

Biological product (except diagnostic) manufacturing

Soap and cleaning compound manufacturing

All other chemical product and preparation manufacturing

Plastics packaging materials and unlaminated film and sheet manufacturing

Plastics pipe, pipe fitting, and unlaminated profile shape manufacturing

Laminated plastics plate, sheet (except packaging), and shape manufacturing

Urethane and other foam product (except polystyrene) manufacturing

Rubber and plastics hoses and belting manufacturing

Clay product and refractory manufacturing

Glass and glass product manufacturing

Concrete pipe, brick, and block manufacturing

Lime and gypsum product manufacturing

Cut stone and stone product manufacturing

Ground or treated mineral and earth manufacturing

Iron and steel mills and ferroalloy manufacturing

Steel product manufacturing from purchased steel

Alumina refining and primary aluminum production

Secondary smelting and alloying of aluminum

Aluminum product manufacturing from purchased aluminum

Nonferrous Metal (except Aluminum) Smelting and Refining

Copper rolling, drawing, extruding and alloying

Nonferrous metal (except copper and aluminum) rolling, drawing, extruding and alloying

Metal crown, closure, and other metal stamping (except automotive)

All other forging, stamping, and sintering

Plate work and fabricated structural product manufacturing

Ornamental and architectural metal products manufacturing

Power boiler and heat exchanger manufacturing

Metal tank (heavy gauge) manufacturing

Metal can, box, and other metal container (light gauge) manufacturing

Spring and wire product manufacturing

Turned product and screw, nut, and bolt manufacturing

Coating, engraving, heat treating and allied activities

Plumbing fixture fitting and trim manufacturing

Valve and fittings other than plumbing

Ball and roller bearing manufacturing

Fabricated pipe and pipe fitting manufacturing

Ammunition, arms, ordnance, and accessories manufacturing

Farm machinery and equipment manufacturing

Lawn and garden equipment manufacturing

Mining and oil and gas field machinery manufacturing

Optical instrument and lens manufacturing

Photographic and photocopying equipment manufacturing

Other commercial and service industry machinery manufacturing

Industrial and commercial fan and blower and air purification equipment manufacturing

Heating equipment (except warm air furnaces) manufacturing

Air conditioning, refrigeration, and warm air heating equipment manufacturing

Special tool, die, jig, and fixture manufacturing

Cutting and machine tool accessory, rolling mill, and other metalworking machinery manufacturing

Turbine and turbine generator set units manufacturing

Speed changer, industrial high-speed drive, and gear manufacturing

Mechanical power transmission equipment manufacturing

Air and gas compressor manufacturing

Pump and pumping equipment manufacturing

Industrial process furnace and oven manufacturing

Other general purpose machinery manufacturing

Computer terminals and other computer peripheral equipment manufacturing

Broadcast and wireless communications equipment

Audio and video equipment manufacturing

Semiconductor and related device manufacturing

Printed circuit assembly (electronic assembly) manufacturing

Electromedical and electrotherapeutic apparatus manufacturing

Search, detection, and navigation instruments manufacturing

Industrial process variable instruments manufacturing

Totalizing fluid meter and counting device manufacturing

Electricity and signal testing instruments manufacturing

Watch, clock, and other measuring and controlling device manufacturing

Manufacturing and reproducing magnetic and optical media

Electric lamp bulb and part manufacturing

Household refrigerator and home freezer manufacturing

Other major household appliance manufacturing

Power, distribution, and specialty transformer manufacturing

Switchgear and switchboard apparatus manufacturing

Relay and industrial control manufacturing

Communication and energy wire and cable manufacturing

Carbon and graphite product manufacturing

All other miscellaneous electrical equipment and component manufacturing

Light truck and utility vehicle manufacturing

Travel trailer and camper manufacturing

Motor vehicle gasoline engine and engine parts manufacturing

Motor vehicle electrical and electronic equipment manufacturing

Motor vehicle transmission and power train parts manufacturing

Motor vehicle seating and interior trim manufacturing

Other Motor Vehicle Parts Manufacturing

Motor vehicle steering, suspension component (except spring), and brake systems manufacturing

Aircraft engine and engine parts manufacturing

Other aircraft parts and auxiliary equipment manufacturing

Guided missile and space vehicle manufacturing

Propulsion units and parts for space vehicles and guided missiles

Motorcycle, bicycle, and parts manufacturing

Military armored vehicle, tank, and tank component manufacturing

All other transportation equipment manufacturing

Wood kitchen cabinet and countertop manufacturing

Nonupholstered wood household furniture manufacturing

Showcase, partition, shelving, and locker manufacturing

Office furniture and custom architectural woodwork and millwork manufacturing

Other furniture related product manufacturing

Surgical and medical instrument manufacturing

Surgical appliance and supplies manufacturing

Dental equipment and supplies manufacturing

Sporting and athletic goods manufacturing

Doll, toy, and game manufacturing

Office supplies (except paper) manufacturing

Motor vehicle and motor vehicle parts and supplies

Professional and commercial equipment and supplies

Household appliances and electrical and electronic goods

Other durable goods merchant wholesalers

Drugs and druggists’ sundries

Grocery and related product wholesalers

Other nondurable goods merchant wholesalers

Wholesale electronic markets and agents and brokers

Motor vehicle and parts dealers

Building material and garden equipment and supplies dealers

Health and personal care stores

Clothing and clothing accessories stores

Transit and ground passenger transportation

Scenic and sightseeing transportation and support activities for transportation

Directory, mailing list, and other publishers

Motion picture and video industries

Cable and other subscription programming

Wireless telecommunications carriers (except satellite)

Satellite, telecommunications resellers, and all other telecommunications

Data processing, hosting, and related services

Internet publishing and broadcasting and Web search portals

News syndicates, libraries, archives and all other information services

Nondepository credit intermediation and related activities

Securities and commodity contracts intermediation and brokerage

Insurance carriers, except direct life

Insurance agencies, brokerages, and related activities

Funds, trusts, and other financial vehicles

Monetary authorities and depository credit intermediation

Automotive equipment rental and leasing

Commercial and industrial machinery and equipment rental and leasing

General and consumer goods rental

Lessors of nonfinancial intangible assets

Accounting, tax preparation, bookkeeping, and payroll services

Architectural, engineering, and related services

Other computer related services, including facilities management

Environmental and other technical consulting services

Scientific research and development services

Advertising, public relations, and related services

All other miscellaneous professional, scientific, and technical services

Management of companies and enterprises

Travel arrangement and reservation services

Services to buildings and dwellings

Waste management and remediation services

Junior colleges, colleges, universities, and professional schools

Offices of other health practitioners

Other ambulatory health care services

Nursing and community care facilities

Residential mental health, substance abuse, and other residential care facilities

Community food, housing, and other relief services, including rehabilitation services

Independent artists, writers, and performers

Promoters of performing arts and sports and agents for public figures

Museums, historical sites, zoos, and parks

Gambling industries (except casino hotels)

Other amusement and recreation industries

All other food and drinking places

Electronic and precision equipment repair and maintenance

Commercial and industrial machinery and equipment repair and maintenance

Personal and household goods repair and maintenance

Grantmaking, giving, and social advocacy organizations

Civic, social, professional, and similar organizations

State and local government passenger transit

State and local government electric utilities

Other state and local government enterprises

[1] For a detailed description of the FD–ID system as well as other information pertaining to the system, please visit https://www.bls.gov/ppi/fd-id/home.htm. ↩

[2] This table is found in Benchmark Input–Output Accounts of the United States, 2012, published by BEA at https://www.bea.gov/industry/input-output-accounts-data. ↩

[3] In many cases, the same commodity is purchased by different buyer types, so commodities are often included in several FD–ID indexes. For example, regular gasoline is purchased for personal consumption, export, government use, and business use. The PPI program publishes only one commodity index for regular gasoline, reflecting sales to all types of buyers. It is this index that is used in all FD–ID aggregations, regardless of whether the gasoline is sold for personal consumption, as an export, to government, or to businesses, with differences accounted for in the applicable weights to each aggregate FD or ID index. In some cases, buyer type is an important price determining characteristic and results in commodity indexes being created on that basis. For example, within the PPI category for loan services, separate indexes for consumer loans and business loans were constructed. In this case, the commodity index for consumer loans would be included in the final–demand index, and the commodity index for business loans would fall under intermediate demand. ↩

[4] For a detailed description of the methodology used to develop the PPI production flow model, see https://www.bls.gov/ppi/fd-id/2002-bea-data-analysis-for-the-development-of-the-experimental-ppi-aggregation-system.pd. ↩

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