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HomeMalaysia NewsMalaysia's Producer Price Index (PPI) Shows Improvement in August 2023: Report

Malaysia’s Producer Price Index (PPI) Shows Improvement in August 2023: Report

In August 2023, Malaysia’s Producer Price Index (PPI) exhibited positive signs of improvement. This key economic indicator reflects a favorable trend in the country’s industrial and manufacturing sectors. The PPI’s rise indicates potential benefits for businesses and consumers alike, showcasing a promising economic outlook for Malaysia.

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KUALA LUMPUR, Sept 26 — Malaysia’s Department of Statistics Malaysia has reported that the Producer Price Index (PPI) for August 2023 showed a decline of -1.8 per cent. This marks an improvement from July’s figure of -2.3 per cent, and a significant rebound from June’s -4.8 per cent.

The primary factor behind this decline was the mining sector, which saw a decrease of -3.8 per cent in August 2023, a notable improvement from July’s -10.8 per cent. Within the mining sector, the extraction of crude petroleum index was particularly affected, posting a -6.5 per cent decrease in August 2023.
Additionally, the manufacturing sector experienced a decline of -2.3 per cent, largely influenced by the drop in the manufacture of coke and refined petroleum products, which witnessed a substantial decrease of -13.4 per cent. The manufacture of food products also contributed to the decline with a -7.6 per cent decrease in its index.

On a monthly basis, the PPI for local production showed a slight increase, rising by 0.3 per cent in August, up from 0.2 per cent in July. The mining sector, in particular, saw a significant monthly increase of 3.9 per cent, driven by improvements in the extraction of crude petroleum (5.0 per cent) and extraction of natural gas (0.7 per cent) indices.

The agriculture, forestry, and fishing sector also saw a modest increase of 1.9 per cent, with the index of growing perennial crops showing a notable rise of 5.0 per cent. Furthermore, the water supply sector recorded a slight increase of 0.2 per cent in the same month.

In contrast, the manufacturing sector decreased by -0.2 per cent on a monthly basis. This decline was attributed to the manufacture of refined petroleum products (-1.2 per cent) and the manufacture of vegetable and animal oils and fats (-1.2 per cent) indices. The electricity and gas supply sector also experienced a slight decline of -0.1 per cent, according to Datuk Seri Dr. Mohd Uzir Mahidin, the Chief Statistician.
This data suggests a mixed picture for Malaysia’s economic sectors, with improvements in some areas, particularly in mining and agriculture, but challenges remain in the manufacturing sector, particularly in the production of petroleum products and food items.