According to the Labor Department''s Producer Price Index in September 2003 the wholesale prices of locally produced men''s and boys'' apparel declined by 0.1 percent. Compared with September 2002, wholesale prices for men''s and boys'' apparel made in the U.S. fell 0.9 percent. Wholesale prices for all domestically produced apparel fell slightly by 0.1 percent in September versus August and fell 0.5 percent against a year ago.

Producer prices for girls'', children''s and infants'' apparel fell 0.3 percent for the month and were up 0.7 percent over the year. "The story is still the same," said Charles McMillion, chief economist at MBG Information Services. "U.S. producers have no pricing power. At this point, they have cut profits as far as they can cut them." McMillion said the tax cuts in July and August boosted consumer spending, which he claimed got a bounce in the short term. "Producer prices would be worse if spending hadn''t gotten the bounce," he said. "Despite the tax cuts, an uptick in back-to-school sales and continued strong auto and home sales, textile and apparel companies have no over very little pricing power."

For all finished goods, producer prices rose 0.3 percent for the month, driven primarily by a 1.2 percent increase in food prices. Wholesale prices for U.S. textile mills fell 0.2 percent for the month and fell 0.1 percent against a year ago. For the month, gray fabric prices fell 0.5 percent at the wholesale level and compared with 12 months before fell 2.1 percent.