Privately-owned housing starts in May were at a seasonally adjusted annual rate of 914,000. This is 6.8 percent above the revised April estimate of 856,000 and is 28.6 percent above the May 2012 rate of 711,000.

Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 974,000. This is 3.1 percent below the revised April rate of 1,005,000, but is 20.8 percent above the May 2012 estimate of 806,000.

Single-family authorizations in May were at a rate of 622,000; this is 1.3 percent above the revised April figure of 614,000. Authorizations of units in buildings with five units or more were at a rate of 325,000 in May.

Single-family housing starts in May were at a rate of 599,000; this is 0.3 percent above the revised April figure of 597,000. The May rate for units in buildings with five units or more was 306,000.

Privately-owned housing completions in May were at a seasonally adjusted annual rate of 690,000. This is 0.9 percent below the revised April estimate of 696,000, but is 12.6 percent above the May 2012 rate of 613,000.

Single-family housing completions in May were at a rate of 546,000; this is 4.2 percent above the revised April

Real average hourly earnings for all employees fell 0.2 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This decrease stems from an unchanged average hourly earnings combined with an increase of 0.1 percent in the Consumer Price Index for All Urban Consumers (CPI-U).

Real average weekly earnings fell 0.1 percent over the month due to the decrease in real average hourly earnings and an unchanged average workweek.

Real average hourly earnings rose 0.5 percent, seasonally adjusted, from May 2012 to May 2013. The increase in real average hourly earnings, combined with a 0.3 percent increase in the average workweek, resulted in a 0.9 percent increase in real average weekly earnings over this period.

Production and nonsupervisory employees

Real average hourly earnings for production and nonsupervisory employees was unchanged from April to May, seasonally adjusted. This result stems from an unchanged average hourly earnings and a 0.2 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Real average weekly earnings rose 0.2 percent over the month due to the unchanged real average hourly earnings and an increase of 0.3 percent in the average workweek.

Real average hourly earnings rose 0.7 percent, seasonally adjusted, from May 2012 to May 2013. The increase in real average hourly earnings, combined with a 0.3 percent increase in the average workweek, resulted in real average weekly earnings increasing 0.9 percent over this period.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 1.4 percent before seasonal adjustment.

The shelter index rose 0.3 percent and accounted for more than half of the seasonally adjusted all items increase in May. The energy index rose modestly, with the gasoline index flat but increases in the electricity and natural gas indexes accounting for the rise. The food index, however, turned down in May, with the food at home index falling 0.3 percent.

The index for all items less food and energy increased 0.2 percent in May. Besides the shelter increase, advances in the indexes for airline fares, recreation, and apparel also contributed to the rise. In contrast, the indexes for medical care and used cars and trucks declined in May.

The all items index increased 1.4 percent over the last 12 months, an increase from last month’s 1.1 percent figure. The 12-month change in the index for all items less food and energy remained at 1.7 percent. The food index has risen modestly over the last 12 months, advancing 1.4 percent, while the index for energy has declined, falling 1.0 percent.

Food

The food index fell 0.1 percent in May after rising 0.2 percent in April. The index for food at home fell 0.3 percent, its largest decline since July 2009. Four of the six major grocery store food group indexes posted declines, led by nonalcoholic beverages, which fell 1.1 percent. The index for dairy and related products decreased 0.8 percent, its third decline in the last four months. The indexes for cereals and bakery products and other food at home both turned down in May, falling 0.4 percent and 0.3 percent, respectively. The index for meats, poultry, fish, and eggs, which increased in April, was unchanged in May. The only grocery store food group index to rise was fruits and vegetables, which increased 0.4 percent in May after a 1.4 percent decline in April. The food at home index has increased 0.8 percent over the past year; the fruits and vegetables index has risen the most of the six groups over that span, increasing 2.1 percent. The index for food away from home rose 0.2 percent in May and has risen 2.3 percent over the past year.

Energy

The energy index rose in May, increasing 0.4 percent after substantial declines in March and April. The gasoline index, which declined sharply the previous two months, was unchanged in May. (Before seasonal adjustment, gasoline prices rose 0.8 percent in May.) The fuel oil index continued to fall; its 2.9 percent decrease in May was its third consecutive decline. However, other energy indexes rose. The electricity index, which increased 0.5 percent in April, rose 0.8 percent in May. The natural gas index rose 2.4 percent, its fourth consecutive increase. Over the last 12 months energy indexes are mixed, with the index for fuel oil falling 5.8 percent and the gasoline index down 4.1 percent, but the natural gas index rising 14.2 percent and the electricity index up 1.7 percent.

All items less food and energy

The index for all items less food and energy increased 0.2 percent in May after rising 0.1 percent in both March and April. The shelter index rose 0.3 percent in May, its largest increase since July 2011. The  index for rent rose 0.3 percent and the index for owners’ equivalent rent increased 0.2 percent. The index for lodging away from home rose 1.2 percent in May, its fifth consecutive increase. Besides shelter, several other indexes also increased in May. The index for airline fares rose 2.2 percent after declining in April. The indexes for apparel and recreation both rose 0.2 percent after declining in recent months. In contrast to these increases, the index for medical care declined in May, falling 0.1 percent. The index for medical care services was unchanged while the index for medical care commodities fell 0.5 percent, with the index for prescription drugs decreasing 0.6 percent. The index for used cars and trucks also declined, falling 0.1 percent after increasing in each of the first four months of the year. Several indexes were unchanged in May, including new vehicles, tobacco, and household furnishings and operations.

The index for all items less food and energy increased 1.7 percent for the 12 months ending May. The index for shelter has risen 2.3 percent over the last 12 months. The medical care index has risen 2.2 percent, its smallest 12-month increase since September 1972. The index for medical care services has increased 2.9 percent over the last year, while the index for medical care commodities was unchanged, with the prescription drug index down 0.1 percent over the span.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.4 percent over the last 12 months to an index level of 232.945 (1982-84=100). For the month, the index increased 0.2 percent prior to seasonal adjustment.

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 1.2 percent over the last 12 months to an index level of 229.399  (1982-84=100). For the month, the index increased 0.2 percent prior to seasonal adjustment.

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 1.3 percent over the last 12 months. For the month, the index increased 0.2 percent on a not seasonally adjusted basis. Please note that the indexes for the post-2011 period are subject to revision.

The Producer Price Index for finished goods rose 0.5 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Prices for finished goods fell 0.7 percent in April and 0.6 percent in March. At the earlier stages of processing, prices received by manufacturers of intermediate goods declined 0.1 percent in May, and the crude goods index advanced 2.2 percent. On an unadjusted basis, prices for finished goods moved up 1.7 percent for the 12 months ended May 2013.

Stage-of-Processing Analysis

Finished goods

In May, over sixty percent of the broad-based rise in finished goods prices is attributable to the index for finished energy goods, which advanced 1.3 percent. Also contributing to the increase in finished goods prices, the index for finished consumer foods rose 0.6 percent and prices for finished goods less foods and energy moved up 0.1 percent.

Finished energy:  The index for finished energy goods moved up 1.3 percent in May following two consecutive declines. A 1.5-percent rise in the index for gasoline accounted for forty percent of the May increase. Higher prices for residential natural gas and residential electric power also were factors in the advance in the finished energy goods index.

Finished foods:  The index for finished consumer foods climbed 0.6 percent in May after falling 0.8 percent in the prior month. Accounting for over sixty percent of the increase, prices for eggs for fresh use surged 41.6 percent. A rise in the index for natural, processed, and imitation cheese also contributed to the advance in the finished consumer foods index.

Finished core:  In May, prices for finished goods less foods and energy moved up 0.1 percent, the seventh consecutive increase. Nearly two-thirds of the May advance can be traced to prices for light motor trucks, which rose 0.4 percent.

Intermediate goods

The Producer Price Index for intermediate materials, supplies, and components edged down 0.1 percent in May following declines of 0.6 percent in April and 0.9 percent in March. The May decrease is attributable to prices for intermediate materials less foods and energy, which fell 0.4 percent. By contrast, the index for intermediate energy goods advanced 0.5 percent, and prices for intermediate foods and feeds increased 1.1 percent. For the 12 months ended in May, the intermediate goods index declined 0.2 percent, the third consecutive 12-month decrease.

Intermediate core:  The index for intermediate materials less foods and energy moved down 0.4 percent in May, the largest decrease since falling 0.4 percent in July 2012. Two-thirds of the May decline can be traced to prices for industrial chemicals, which dropped 2.3 percent. Lower prices for softwood lumber and steel mill products also were factors in the decrease in the intermediate core index.

Intermediate energy:  Prices for intermediate energy goods rose 0.5 percent in May after two consecutive declines. Seventy percent of the advance is attributable to a 4.1-percent jump in the index for utility natural gas. Higher gasoline prices also contributed to the increase in the index for intermediate energy goods.

Intermediate foods:  The index for intermediate foods and feeds moved up 1.1 percent in May, the largest rise since a 2.5-percent advance in August 2012. Leading the May increase, prices for soybean cake and meal surged 19.9 percent.

Crude goods

The Producer Price Index for crude materials for further processing advanced 2.2 percent in May. For the 3 months ended in May, crude goods prices moved down 0.8 percent subsequent to a 1.9-percent advance for the 3 months ended in February. The monthly increase in May was led by the index for crude energy materials, which rose 5.0 percent. Prices for crude foodstuffs and feedstuffs moved up 2.1 percent. By contrast, the index for crude nonfood materials less energy declined 2.3 percent.

Crude energy:  The index for crude energy materials moved up 5.0 percent in May. From February to May, prices for crude energy materials decreased 0.4 percent compared with a 7.4-percent rise from November to February. In May, nearly sixty percent of the monthly broad-based advance is attributable to the crude petroleum index, which rose 5.5 percent. Increases of 6.9 percent for natural gas prices and 1.0 percent for the coal index also contributed to the higher crude energy prices.

Crude foods:  The index for crude foodstuffs and feedstuffs increased 2.1 percent in May. For the 3 months ended in May, crude foods prices rose 1.3 percent after falling 2.0 percent in the previous 3-month period. Accounting for half of the monthly advance in May, grain prices jumped 5.7 percent. An increase in the index for soybeans also was a factor in higher crude foods prices.

Crude core:  The index for crude nonfood materials less energy fell 2.3 percent in May. From February to May, crude core prices dropped 4.1 percent compared with a 0.5-percent decline for the 3 months ended in February. Over sixty percent of the monthly decrease in May is attributable to the index for carbon steel scrap, which fell 6.3 percent.

Services Analysis

Trade industries:  The Producer Price Index for the net output of total trade industries moved down 0.9 percent in May, the largest decrease since falling 0.9 percent in October 2011. (Trade indexes measure changes in margins received by wholesalers and retailers.) Over half of the May decline can be traced to a 0.9-percent drop in margins received by wholesale trade industries. Lower margins received by gasoline stations and clothing stores also contributed to the decrease in the total trade industries index.

Transportation and warehousing industries:  The Producer Price Index for the net output of transportation and warehousing industries fell 0.6 percent in May, the largest decline since a 0.7-percent drop in September 2012. In May, the index for scheduled passenger air transportation accounted for over half of the decrease, moving down 1.5 percent. Lower prices received by the industry groups for truck transportation and for couriers and messengers also were factors in the decline in the transportation and warehousing industries index.

Services less trade, transportation, and warehousing:  The Producer Price Index for the net output of services less trade, transportation, and warehousing industries edged up 0.1 percent in May following a 0.4-percent increase in April. In May, higher prices received by the industry group for security, commodity contracts, and related activities and by non-casino hotels and motels outweighed lower prices received by the depository credit intermediation industry group and offices of lawyers.

The U.S. Census Bureau announced today that the combined value of distributive trade sales and manufacturers’ shipments for April, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1,267.9 billion, down 0.1 percent from March 2013, but were up 1.5 percent from April 2012.

Inventories. Manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1,657.2 billion, up 0.3 percent from March 2013 and up 4.2 percent from April 2012.

Inventories/Sales Ratio. The total business inventories/sales ratio based on seasonally adjusted data at the end of April was 1.31.  The April 2012 ratio was 1.27.

Prices for U.S. imports declined 0.6 percent in May, the U.S. Bureau of Labor Statistics reported today, after a 0.7 percent drop the previous month. Falling fuel and nonfuel prices contributed to the decreases in both months. U.S. export prices fell 0.5 percent in May following declines of 0.7 percent in April and 0.5 percent in March.

Imports

All Imports: U.S. import prices decreased for the third consecutive month in May, falling 0.6 percent, after declines of 0.7 percent in April and 0.1 percent in March. The 1.4 percent drop in import prices over the past three months followed a 1.4 percent increase for the first two months of 2013. Overall import prices fell 1.9 percent for the year ended in May, and have not recorded a 12-month advance since the index rose 0.8 percent between April 2011 and April 2012.

Fuel Imports: Import fuel prices fell 1.9 percent in May; the decline was the largest contributor to the drop in import prices and followed a 2.5 percent decrease the previous month. For the year, the price index for import fuel decreased 4.4 percent. Both the May decline and the decrease over the past 12 months were led by falling petroleum prices, which more than offset rising natural gas prices. Prices for petroleum declined 2.0 percent in May and 6.2 percent for the May 2012-13 period. In contrast, natural gas prices rose 1.2 percent in May after advancing 7.9 percent in April. Prices for natural gas increased 97.0 percent over the past year, after decreasing 49.0 percent between May 2011 and May 2012.

All Imports Excluding Fuel: The price index for nonfuel imports also fell in May, declining 0.3 percent following drops of 0.2 percent in April and 0.1 percent in March. The decline in nonfuel import prices was led by falling prices for nonfuel industrial supplies and materials, although declining finished goods prices also contributed to the decrease. In contrast, foods, feeds, and beverages prices rose in May. Nonfuel import prices fell 1.1 percent over the past 12 months.

Exports

All Exports: Prices for U.S. exports decreased 0.5 percent in May, driven by lower nonagricultural prices which more than offset higher agricultural prices. The May decrease in export prices marked the first time the index has declined for at least three consecutive months since the end of 2008. The price index for exports fell 0.9 percent over the past year, led by falling nonagricultural prices. In contrast, agricultural prices rose over the same period.

Agricultural Exports: Agricultural exports advanced 1.0 percent in May, after falling 2.3 percent in April. The May increase was driven by rising prices for fruit, soybeans, wheat, and corn. Prices for agricultural exports rose 4.7 percent from May 2012 to May 2013, resulting from a 12.4 percent increase for the third quarter of 2012.

All Exports Excluding Agriculture: Prices for nonagricultural exports fell 0.7 percent in May, the largest monthly decline for the index since a 0.7 percent decrease in November 2012. The May decline was led by a drop in the price index for nonagricultural industrial supplies and materials, although finished goods prices also decreased for the month. Nonagricultural export prices fell over the past 12 months, declining 1.6 percent.

Import Prices

Imports by Locality of Origin: Import prices from Japan continued a recent downward trend in May, falling 0.4 percent. The decline followed decreases of 0.6 percent in April, 0.2 percent in March, and 0.5 percent in February. Overall, prices for imports from Japan fell 1.4 percent over the past year, the largest 12-month drop for the index since a 1.5 percent decrease in November 2006. The price index for imports from China also declined in May, falling 0.2 percent. Import prices from China have not recorded a monthly increase since February 2012 and decreased 1.0 percent for the year ended in May. Prices for imports from Canada and the European Union also fell in May, declining 0.9 percent and 0.1 percent respectively, while import prices from Mexico ticked up 0.1 percent.

Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices declined 1.4 percent in May, driven by a 3.9 percent drop in unfinished metals prices. A 1.1 percent decline in chemical prices and a 1.8 percent fall in the price index for selected building materials also contributed to the decrease.

Finished Goods: Consumer goods prices declined 0.3 percent in May, offsetting a 0.3 percent advance the previous month. The May drop was the largest monthly decrease since the index fell 0.5 percent in October 2010 and was led by lower prices for medicinal, dental, and pharmaceutical products. Prices for automotive vehicles also fell in May, declining 0.2 percent after drops of 0.3 percent in April and 0.2 percent in March. The price index for capital goods recorded no change in May.

Foods, Feeds, and Beverages: The price index for foods, feeds, and beverages increased 0.4 percent in May, after a 0.5 percent decline in April. The May advance was led by a 4.1 percent rise in vegetable prices which had dropped 8.3 percent the previous month.

Transportation Services: Import air passenger fares rose 2.0 percent in May, led by a 3.2 percent advance in Asian fares. The May increase in import air passenger fares followed a 0.3 percent rise in April. The index for import air passenger fares rose 2.6 percent over the past year, driven by a 12.4 percent advance in European fares. Import air freight prices fell 0.3 percent in May and 2.9 percent over the past 12 months.

Export Prices

Nonagricultural Industrial Supplies and Materials: Nonagricultural industrial supplies and materials prices declined 1.8 percent in May following a 1.0 percent drop the previous month. A 5.5 percent fall in nonferrous metals prices and a 2.3 percent decline in fuel prices drove the May decrease.

Finished Goods: Capital goods prices and prices for automotive vehicles edged down 0.1 percent in May, while consumer goods prices were unchanged. The decrease in capital goods prices was led by a 0.5 percent drop in the price index for computers, peripherals, and semiconductors, while the decline in automotive vehicles prices was driven by a 0.3 percent decrease in passenger car prices.

Transportation Services: Export air passenger fares rose 5.9 percent in May after declining 2.6 percent the previous month. The May increase was led by a 9.1 percent advance in Asian fares and a 4.5 percent rise in European fares. Despite the May advance, export air passenger fares fell 3.7 percent over the past 12 months. Export air freight prices declined 1.1 percent in May and 2.0 percent over the past year.