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Public industrial sector: producer prices jump 3% in Q3 2019

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Producer prices in the public industrial sector (excluding hydrocarbons) increased by 3% during the third quarter of 2019 compared to the same period last year, APS learned from the National Statistics Office (ONS).

This upward variation in ex-factory prices was mainly driven by the sectors of industries, respectively, textiles, mining and quarrying, wood industries, steel, metal, mechanical and electrical industries (ISMMEE), according to data from the Office on changes in producer prices in the third quarter of 2019.

From July to September 2019 and compared with the same period of 2018, the largest increases in producer prices were recorded in the textile industries, which posted an increase of 9.3%.

This change can be explained by price increases in the consumer goods and intermediate goods industries with 9.9% and 8.7% respectively.

Producer prices in the mining and quarrying sector rose 8.3%, the ONS reported, adding that the largest were recorded in the phosphate mining sector (+11, 9%) and that of mineral matter ore (+ 5.2%).

Industrial producer prices in the wood, cork and paper sector also increased by 4.6%. This upward variation is mainly due to an increase in prices in the paper manufacturing and processing branches (+ 15.4%) and in the cork industry (+ 10.2%).

An upward recovery of 4.4% characterized ISMMEE producer prices in the third quarter of 2019 and compared to the same period in 2018.

The majority of activities in this sector experienced increases in ex-factory prices, in particular those for the manufacture of metallic, mechanical and electrical intermediate goods (11.3%), metallic capital goods (11.2%) and metallic real estate (3.6%).

The same trend affected producer prices in the food industries, which rose 2.5%. A variation induced, in particular, by the rise in the prices of animal food products (7.1%) and the milk industry (1.4%).

A 0.7% rise in producer prices also characterized building materials, ceramics and glass, driven in particular by the rise in manufacturing prices for cement products and various building materials (2.9% ), and building materials and red products with (+ 2.4%).

The chemical industries also experienced a 0.4% increase in producer prices. This trend is mainly due to the rise in prices for basic organic chemicals (6.9%) and other chemicals (+ 2.8%).

On the other hand, the Office noted stagnation in producer prices for the various industries and declines which characterized the leather and shoe industries and the energy industry.

Prices for leather and shoe manufacturing fell -1.3%, mainly due to a 10% drop in intermediate goods made from leather.

As for the Energy (electricity) sector, producer prices were down 1.2% in the third quarter of 2019, compared to the same quarter the year before.

During the first nine 2019, producer prices increased by 2.8%, compared to the same period in 2018.

The most remarkable increases mainly affected the Textile industries (+ 9.7%), mining and quarrying (+ 9.1%), the wood, cork and paper industries (6.9%) and the ISMMEE (3.9%).

Other branches also experienced increases in manufacturing prices, but of lesser magnitude. These include, in particular, the agro-food industries (+ 2%), and construction materials (+ 0.2%).

As a reminder, the average annual change in public industrial producer prices excluding hydrocarbons over the whole of 2018, increased by 2.1% compared to 2017.

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