Manufacturing Prices Show Improvement in October 2024 PPI Report

The Producer Price Index (PPI) for manufacturing showed a slower annual decline of 0.3% in October 2024, improving from a 1.4% drop in September 2024. This indicates an improvement in manufacturing prices. From January to October 2024, the average annual growth rate of the PPI stood at -0.9%. In comparison, October 2023 recorded a 0.6% decrease.

The improved rate in October 2024 was driven mainly by the manufacture of computer, electronic, and optical products, which rose by 2.3% after a 1.2% decline in September 2024. This industry accounted for 56.3% of the improvement. Transport equipment manufacturing increased by 1.1%, while the manufacture of coke and refined petroleum products saw a slower decline of 1.0% from 2.5% in the previous month. Among 22 industry divisions, 11 posted annual growth, while eight registered declines.

The top contributors to the overall growth of the PPI in October 2024 were the manufacture of non-metallic mineral products, coke and refined petroleum products, and fabricated metal products.

In food manufacturing, the annual growth rate slowed to 1.5% from 1.8% in September 2024. Key contributors included a slower rise in processing and preserving fruits and vegetables, which grew by 3.5%, down from 5.9%. Other factors included larger declines in prepared animal feeds and grain mill products.

Month-on-month, the PPI for manufacturing rose by 0.9% in October 2024, reversing the 0.1% decrease in September 2024. Leading this increase was the manufacture of computer, electronic, and optical products, up 2.8% after a 0.4% drop in September 2024. Transport equipment also showed growth, increasing by 1.7%, while non-metallic mineral products saw a slower decline.

Food manufacturing registered a monthly decline of 0.2% in October 2024, driven by a 0.9% drop in processing and preserving fish, crustaceans, and mollusks. This group contributed 38.8% to the monthly decrease in the food manufacturing index. (ASC)