§1The reading
The BLS wood pallet PPI (WPU084101) was 373.698 in July 2023, down 1.4% on the month and down 12.5% on the year.
Over three months the index moved −3.8%.
It was the lowest reading since May 2021.
Across the five years to July 2023, the index ranged from 270.5 (December 2018) to 444.2 (April 2022).
Lumber (WPU081) was −14.7% on the year, softwood −17.3% and hardwood −10.8%; lumber ran 2.2 points behind pallets over twelve months.
The industry-basis index for wood container and pallet manufacturing (PCU321920321920) was −12.3% on the year.
U.S. retail diesel averaged $3.882 a gallon over the month (EIA, 5 weekly readings), −29.2% on a year earlier.
These notes are generated from the published figures, not written by an analyst. The method is on the methodology page.
§2All eight series for July 2023
| Series | Base | Index | Month | Year |
|---|---|---|---|---|
| Wood pallets WPU084101 | 1982 = 100 | 373.698 | −1.4% | −12.5% |
| Pallets incl. wood/metal combination WPU0841 | 1982 = 100 | 373.698 | −1.4% | −12.5% |
| Wood container & pallet mfg (industry) PCU321920321920 | Dec 2003 = 100 | 198.102 | −1.1% | −12.3% |
| Pallets, industry basis PCU3219203219205 | Dec 2003 = 100 | 206.590 | −1.4% | −12.5% |
| Industry primary products PCU321920321920P | Dec 2003 = 100 | 191.837 | −1.2% | −12.7% |
| Lumber WPU081 | 1982 = 100 | 272.345 | +5.7% | −14.7% |
| Softwood lumber WPU0811 | 1982 = 100 | 279.386 | +4.5% | −17.3% |
| Hardwood lumber WPU0812 | 1982 = 100 | 273.659 | +7.6% | −10.8% |
p = preliminary. BLS revises the latest four months.
§3What it means for an index clause
A pallet bought at $10.00 twelve months earlier, escalated in full with this index, would be $8.75 in July 2023. Method: $10.00 × (index in July 2023 ÷ index twelve months before). Most clauses only move the price when the change passes a band, and some pass through only part of it.
Under the model clause's quarterly review, July 2023 is not a review month: the next review, on 1 October 2023, uses the August 2023 reading. A monthly-review contract would use this reading directly.
Run your own numbers with the escalator, or read the model escalator clause.
§4Freight context
U.S. retail on-highway diesel averaged $3.882 a gallon across 5 weekly EIA readings in July 2023 (−29.2% on a year earlier). Delivery charges and fuel surcharges are separate from the producer index, so price them as their own lines in the bid-leveling sheet.