Manufacturing News South Africa

PPI climbs to 5,9% in June

The annual percentage change in the producer price index (PPI) for final manufactured goods was 5.9% in June compared with 4.9% year-on-year in May‚ Statistics SA figures showed on Thursday (25 July).
PPI climbs to 5,9% in June

From May to June the PPI for final manufactured goods increased by 0.8%.

Since January this year‚ Stats SA published distinct PPIs to cover agriculture‚ mining‚ electricity and water‚ and manufacturing.

The PPI for final manufactured goods is now considered the "headline" PPI.

The index was forecast to rise by 5.2% year-on-year (y/y)‚ after a survey by I-Net Bridge. Forecasts among nine leading economists surveyed ranged from 5.1% y/y to 5.6% y/y.

The main contributors to the annual rate of 5.9% were food products‚ beverages and tobacco products (6.3% y/y and contributing 2.1 percentage points) and coke‚ petroleum‚ chemical‚ rubber and plastic products (7.3% y/y and contributing 1.2 percentage points).

The main contributors to the monthly increase of 0.8% were coke‚ petroleum‚ chemical‚ rubber and plastic products (1.8% month-on-month and contributing 0.3 of a percentage point) and transport equipment (2.1% month-on-month and contributing 0.2 of a percentage point).

Sector price rises

The annual percentage change in the PPI for intermediate manufactured goods was 8.0% in June compared with 7.8% in May. From May to June‚ the PPI for intermediate manufactured goods increased by 0.9%.

The main contributors to the annual rate of 8.0% were basic and fabricated metals (9.9% y/y and contributing 2.9 percentage points) and chemicals‚ rubber and plastic products (6.2% y/y and contributing 2.5 percentage points).

The main contributor to the monthly increase of 0.9% was basic and fabricated metals (2.9% month-on-month and contributing 0.9 of a percentage point).

The annual percentage change in the PPI for electricity and water was 5.9% in June compared with 13.5% in May. From May to June‚ the PPI for electricity and water increased by 34.7%.

The contributors to the annual rate of 5.9% were electricity (6.3% y/y and contributing 5.5 percentage points) and water (11.5% y/y and contributing 1.4 percentage points).

The contributor to the monthly increase of 34.7% was electricity (42.0% month-on-month and contributing 34.8 percentage points).

The annual percentage change in the PPI for mining was 7.0% in June 2013 compared with 5.7% in May. From May to June‚ the PPI for mining increased by 0.5%.

The main contributors to the annual rate of 7.0% were non-ferrous metal ores (12.4% y/y and contributing 5.6 percentage points) and coal and gas (6.3% y/y and contributing 1.6 percentage points).

The main contributors to the monthly rate of 0.5% were non-ferrous metal ores (1.7% month-on-month and contributing 0.8 of a percentage point) and coal and gas (1.5% month-on-month and contributing 0.4 of a percentage point).

The annual percentage change in the PPI for agriculture‚ forestry and fishing was 3.2% in June compared with 2.9% in May. From May to June the PPI for agriculture‚ forestry and fishing decreased by 0.1%.

The main contributor to the annual rate of 3.2% was agriculture (2.8% y/y and contributing 2.2 percentage points).

The main contributor to the monthly rate of -0.1% was agriculture (-0.4% month-on-month and contributing -0.3 of a percentage point).

Source: I-Net Bridge

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