Producer Price Index Report: Metallurgy Declines, Clothing Industry Rises – Insights on Quarterly Trends

2023-09-25 17:20:16

Overall drop of 0.1% in producer prices: Metallurgy down, clothing industry up

According to the August HCP report, the producer price index for manufacturing industries, excluding oil refining, recorded a slight decline of 0.1% from the previous month. To put this decrease in perspective, the same index had experienced a significant increase in July 2023, with an increase of 0.8% compared to June 2023, which itself had increased by 0.2% compared to May 2023.

This decline was largely explained by the 4% fall in prices in the metallurgy sector, encompassing activities such as metalworking, steelmaking and steel processing. Conversely, the clothing industry recorded a 1.4% increase in its production prices.

Stability in the food industries, decline in the extractive industries

In August, the producer price index in the food industries increased slightly by 0.2%. This stability indicates that, despite some fluctuations, the food sector continues to resist economic pressures. On the other hand, the extractive industries did not benefit from the same stability, recording a 0.1% drop in their producer prices.

Finally, the electricity production and distribution sectors, as well as the water production and distribution sectors, experienced stagnation in producer prices in August.

Quarterly evolution

It is important to note that the production index of manufacturing industries excluding oil refining has undergone various developments in recent quarters. In the first quarter of 2023, it recorded an increase of 1.9% compared to the same period of 2022. However, in the second quarter, it experienced a decrease of 3.5% compared to 2022.

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In the second quarter of 2022, the index recorded a significant increase of 2.7%. This increase was attributed to price growth of 5.1% in “Food industries”, 14.8% in “Metallurgy”, 1.4% in “Chemical industry” and “Manufacturing of metal products”, 1.3% in “Manufacture of electrical equipment”, 2.8% in “Manufacture of rubber and plastic products”, 3.5% in “Textile industry” , by 8.4% in “Woodworking”, by 0.7% in the “Automotive industry” and the “Paper and cardboard industry”, as well as a slight decrease of 0.3% in the “Pharmaceutical Industry”.

As a reminder, the Producer Price Index is used to measure the relative evolution of prices at the production stage, with a basket comprising 351 products and 787 varieties, classified by activity, sub-branch and branch, thus providing an overview detailed analysis of the manufacturing economy.

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