Producer Price Index Shows Decline in August 2024

The Producer Price Index (PPI) for manufactured goods in the country fell by 1.0 percent in August 2024, marking a faster decline compared to a 0.4 percent drop in July. This decline reflects an average annual PPI growth rate of -0.8 percent from January to August 2024. In August 2023, the PPI had seen a slight increase of 0.5 percent.

The primary reason for this decrease was the significant drop in the coke and refined petroleum products sector, which saw a decline of 3.4 percent in August, up from 1.1 percent in July. This sector alone contributed 34.0 percent to the overall decline in the PPI for manufacturing.

Other contributing factors included reduced growth in the manufacture of computer, electronic, and optical products, which fell to 0.9 percent from 1.8 percent the previous month. The transport equipment sector also saw a decrease, with a growth rate dropping to 1.7 percent from 2.6 percent in July.

Out of the 22 manufacturing sectors, eight experienced annual declines, while 11 showed increases. The top three contributors to the overall PPI growth in August were the coke and refined petroleum products, fabricated metal products, and other non-metallic mineral products.

In food manufacturing, the PPI growth rate slowed to 0.5 percent, down from 0.8 percent in July. The processing and preserving of fish, crustaceans, and mollusks saw a steep decline of 14.0 percent, significantly impacting the overall PPI for food products.

Month-on-month, the food manufacturing sector also faced challenges, with a 0.2 percent decline in August after a slight increase of 0.1 percent in July. The processing and preserving of fish, crustaceans, and mollusks was a major factor, dropping 3.7 percent during the month. (ASC)