Producer Price Index: The U.S. Bureau of Labor Statistics’ Producer Price Index (PPI) for final demand increased 0.2% in March 2024 (seasonally adjusted), after increasing 0.6% in February. The index for final demand goods decreased 0.1% in March, after rising 1.2% in February, while the index for final demand services moved up 0.3%, the third consecutive rise. A major factor in the March increase in prices for final demand services was the index for securities brokerage, dealing, investment advice, and related services, which rose 3.1 percent.

Figure 1 shows the PPI for materials and components of construction, with the three-month moving average (3MMA) on the left-hand axis and monthly percent change of the 3MMA on the right. March’s 3MMA was 355.01, representing a change of +0.13% month over month (3MMA m/m). The 3MMA has been steadily increasing since July.

Figure 2 shows the PPI for materials and components of manufacturing, with the 3MMA on the left-hand axis and monthly percent change of the 3MMA on the right. March’s 3MMA was 233.07 representing a change of +0.20% m/m. The 3MMA has been steadily increasing for the last two months.

At Gerdau, we monitor the PPI – issued monthly by the U.S. Bureau of Labor Statistics – because it is an unbiased, reliable measure of inflation. The PPI can better inform business decisions by providing a framework for contract adjustment, forecasting, inventory valuation, and as an overall economic indicator.