Wholesale Apparel Prices Dip in July.

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Author: Unknown

Dateline: WASHINGTON

Wholesale prices for domestically produced women's and girls' apparel in July declined 0.4 percent against June for the second consecutive monthly drop, according to the Labor Department's Producer Price Index released Friday.

Meanwhile, prices for U.S.-made textiles in July rose 0.2 percent for the fourth month in a row, reflecting a pocket of pricing strength after a historically long period of mostly price declines. Mill prices increased 0.6 percent in June, 0.3 percent in May and 0.2 percent in April.

Ever since the government reclassified apparel and textile categories this year, there are no year-over-year wholesale price comparisons, and data are not seasonally adjusted.

Charles McMillion, president and chief economist with MBG Information Services, attributed higher textile mill prices to increased orders from the Department of Defense and for niches in demand such as auto upholstery. He said fears that terrorism could disrupt supply channels may also be a factor in overall textile price gains.

However, McMillion doesn't expect textile prices to significantly recover lost ground, as U.S. mills and apparel producers still face stiff competition from increasing low-priced imports.

The Federal Reserve last month reported that textile mill output in June dropped 5 percent against June 2002, and fell 0.2 percent against May. July's production index isn't yet available.

In the overall economy, wholesale prices for all finished goods in July increased 0.1 percent against June, after posting a monthly decline of 0.3 percent in May. July's slight gain reflected a 1.6 percent drop in food prices, which helped to offset a 2.3 percent climb in energy prices.

Meanwhile, prices for all apparel in July declined 0.2 percent against June. Among the categories of women's and girls' apparel showing notable price changes for the month were bras, which fell 1.5 percent; dresses, which dipped 1.2 percent, and skirts, which decreased 0.3 percent. Prices were unchanged for knit and woven blouses, nightwear, and jeans and slacks.