Effects of the PPI weight update on final-demand relative-importance values

In January 2023, the U.S. Bureau of Labor Statistics introduced its latest update of value weights used to calculate producer price indexes (PPIs). This update, based on 2017 value-of-shipments data, resulted in shifting PPI relative-importance values. This article analyzes the update’s effects on the relative-importance values of selected indexes for goods, services, and construction products within PPI’s headline final-demand index. The U.S. Bureau of Labor Statistics regularly updates the value weights used to calculate producer price indexes (PPIs). The purpose of these updates is to reflect recent production and marketing patterns more accurately. The most recent weight update was introduced with the release of January 2023 PPI data and is based on 2017 value-of-shipments data collected from the census of manufactures, the census of mining, the census of services, and the census of agriculture. From January 2018 through December 2022, PPI weights were based on 2012 shipment values.