The estimated dollar value of manufacturers' shipments of consumer nondurable goods plunged 4.0% between May and June. This was an unexpectedly sharp over-the-month decline even in a weak economy. Shipments of nondurable consumer goods had increased by 0.4% in April and 1.8% during May. Shipments and orders through the first two quarters were 2.2% greater than during January-June 00, sharply lower than the 9.8% gain in nondurable consumer goods shipments between 99 and 00. The estimated value of June 01 consumer nondurables was 1.3% below June 00. The value of food products shipped declined by 0.7% between May and June. However, food shipments this June were still worth 3.5% more than June 00, and on a cumulative year-to-date basis 01 shipments are running 4.3% ahead of the first half of 00. The value of pharmaceuticals/medicines fell 6.5% from the May level, and was 5.3% lower this June than last June.

Converting's exclusive packaged goods price index (PGPI) was unchanged between May and June, and now stands a modest 1.6% higher than during June 00. Average prices for 7 of the 16 components that make up the composite PGPI increased over the month, another 4 declined, and 5 product groups were flat. The sharpest over-the-month price increase was posted in the bakery products group, where the index grew 0.4%. Also modestly higher over the month were the average price measures for soft drinks (+0.3%), shortening/cooking oils (+0.3%), and household glassware (+0.2%). The monthly price increases were offset, however, by declines in average prices received for household flatware (-0.8%), rugs (-0.3%), alcoholic beverages (-0.1%), and cosmetics (-0.1%) and by the fact that five other product categories were flat. Between June 00 and June 01, average prices increased for 8 of the 16 PGPI components.