Malaysia’s producer price index shrinks 1.5% in Nov

The mining sector recorded the biggest drop last month at 4.7% due to the decline in the indices for extraction of natural gas and crude petroleum. (Freepik pic)

PETALING JAYA: Malaysia’s producer price index (PPI), which measures the prices of goods at the factory gate, continued its downtrend in November 2023 with a larger year-on-year (y-o-y) contraction of 1.5% compared with 0.3% in October.

The statistics department said all sectors were in negative territory except for water supply, which recorded a 1% growth.

The mining sector saw the biggest drop last month at 4.7%, erasing October’s 1% growth, due to the decline in the indices for extraction of natural gas (-15.2%) and extraction of crude petroleum (-1.1%).

Chief Statistician Uzir Mahidin said the manufacturing sector continued to ease with a 1.4% contraction (October 2023: -0.7%), dragged down by the manufacture of coke and refined petroleum products (-11.7%) and manufacture of food products (-4.5%) indices.

Meanwhile, the agriculture, forestry, and fishing sectors swung to a 0.4% contraction from a growth of 3.8% in the previous month due to a 1.5% decline in the growing of perennial crops.

The electricity and gas supply sector also shrank by 0.6%, which followed the 0.5% decrease in October.

On a monthly basis, the PPI for local production declined at a faster pace of 0.7% in November compared to a 0.3% contraction in the prior month.

Meanwhile, on the PPI by stage of processing, Uzir said the finished goods index grew 1.7% y-o-y last month, cooling down from a 2.2% growth in October.

In contrast, the intermediate materials, supplies, and components index saw a contraction of 3.4% (October 2023: -3%).

Meanwhile, the crude materials for further processing index’s growth slowed to 0.3% in November from 5.3% in the previous month.

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