PPI REBOUNDS 0.2% IN SEPTEMBER 2023 AFTER SEVEN CONSECUTIVE MONTHS OF DECLINE - DOSM

Malaysia's producer price index (PPI) rebounded 0.2% in September 2023 against a contraction of 2.2% in August 2023 contributed by all sectors except the manufacturing sector, the Department of Statistics Malaysia (DoSM) said.

“This is the first increase after seven consecutive months of decline since February 2023 due to the base effect and higher prices of primary commodities,” it said in a statement.

On PPI by sector, chief statistician Datuk Seri Mohd Uzir Mahidin said the agriculture, forestry and fishing sector increased 3.2% in September 2023 versus a decline of 1% in August 2023 and the mining sector climbed 6.9% against negative 3.8% in the previous month.

He said the electricity and gas supply sector grew 0.5% in September 2023 versus negative 0.1% in August 2023 while the water supply sector slid 0.9% from 2.5% in the previous month.

He said the manufacturing sector remained in the negative territory for five consecutive months by contracting 0.8% in September 2023 from negative 2.3% in August 2023.

Mohd Uzir said in comparison with other countries, the PPI of the United States (US) went up 2.2% in September 2023 from 2% in August 2023, the highest since April 2023, while Japan's PPI also expanded 2%, albeit slowing from an increase of 3.3% in the previous month.

He said China's producer price continued to decline by 2.5% in September 2023 from a drop of 3% in the previous month while India's producer inflation registered a smaller contraction of 0.3% from negative 0.5% in August 2023.

On a monthly basis, Mohd Uzir said the local production went up 0.9% in September 2023 from a flat growth in August 2023, mainly supported by the mining sector, which increased 5.6% from 3.9% in the previous month, the manufacturing sector, which expanded 0.8% against a contraction of 0.2%, as well as the electricity and gas supply sector which improved 0.4% versus negative 0.1% previously.

For the third quarter of 2023 (3Q), he said the PPI remained in the negative territory by contracting 1.4% from a contraction of 4.1% in 2Q attributable to the falls in the mining sector (negative 2.8%) and the manufacturing sector (negative 1.7%).

For the first nine months of 2023, he said the PPI decreased 2.1% year-on-year due to the volatility of Malaysia's main commodities, particularly palm oil products and crude oil.