Local PPI declines 1.4% YoY in April


The Production Price Index (PPI) for local production has dipped year-on-year (YoY) by 1.4% in April 2019, due to the decreases in the agriculture, forestry and fishing, water supply and manufacturing sectors, based on the Department of Statistics Malaysia data.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin (picture) said agriculture, forestry and fishing dropped 11.9% in the month, water supply had seen a lower production price by 2.6%, while manufacturing was marginally lower by 0.8%.

“However, the index of electricity and gas supply, and mining increased 1.5% and 1.4% respectively,” he said in a statement yesterday.

He said the local production PPI rose 0.6% month-on-month (MoM) on the back of mining which increased by 6.9%, agriculture, forestry and fishing (+1.0%), and water supply (+0.1%).

“Meanwhile, the index of electricity and gas supply; and manufacturing dropped by 0.8% and 0.2% respectively.

“PPI of local production for the period of January through April 2019 registered a decrease of 2% against the same period last year,” he said.

In regards to the PPI by processing stage, he said the PPI of local production showed a decline YoY on the decrease of intermediate materials’ indices.

“It was contributed by the index of intermediate materials, supplies and components (-1.8%), crude materials for further processing (-1.5%) and finished goods (-0.4%),” he said.

According to him, the PPI of production by stage of processing for the month increased 0.6% MoM driven by crude materials for further processing, which showed an increase by 4%.

“On the other hand, intermediate materials, supplies and components, and finished goods declined 0.3% and 0.3% respectively,” he said.

The wholesale and retail trade alongside the services sectors foresee better business conditions for the April through June period, giving rise to overall business confidence indicator to 2.8%.

Mohd Uzir said the services sector is exhibiting highly optimistic outlook, with its confidence indicator recording 20.8% for the period in contrast to the 5.9% in the previous quarter.

“The confidence indicator for the wholesale and retail trade sector also rebounds in the second quarter of 2019 (2Q19) to 6.7% from 8.2% recorded in the last quarter.

“In contrast, the industry and construction sectors’ respondents expect their business situation to decline in 2Q19 with the confidence indicators of -6.7% and -9.3% respectively,” he said.