May Import Prices Fell 0.5 Percent

Economy

Prices U.S. businesses paid for imported goods fell 0.5 percent in May as energy costs dropped following the harsh winter, the Labor Department reported Friday.

The petroleum import price index fell 2.2 percent as the weather turned milder.

The Labor Department also reported prices for U.S. products exported to other countries rose 0.4 percent in May.

Agricultural export prices advanced 3.1 percent in May, reflecting record prices for grain.

In other reports this week:

The Commerce Department said starts of new U.S. housing dropped a larger-than-expected 4.7 percent in May as mortgage rates and builders’ borrowing costs increased.

Most regions of the country reported fewer starts. Only the South bucked the trend.

U.S. workers’ productivity improved in the first quarter, but less than previously estimated.

Non-farm productivity increased at a revised 2.1 percent annual rate during January, February and March, the Labor Department said. That’s down from a preliminary first-quarter report in May of a 2.6 percent increase.