UK Dec manufacturers´ output, input prices drop to lowest level for over 3 yrs
Monday, January 10, 2005 9:51:57 AM
afxpress.com
UK Dec manufacturers' output, input prices drop to lowest level for over 3 yrs LONDON (AFX) - Factory gate prices fell well below analysts' expectations in December, dropping to their weakest level since November 2001, while raw material costs also slumped, official figures showed
The Statistics Office said factory gate prices fell by 0.4 pct in December from November, the weakest figure since November 2001, and rose 2.9 pct from a year ago, significantly below expectations for a 0.1 pct rise month-on-month and a 3.4 pct gain on the year
The fall mainly reflects price falls in other manufactured and petroleum products, National Statistics said
In November, output prices rose 0.1 pct and 3.5 pct respectively
Raw material costs also fell dramatically during the month, largely due to a 14.9 pct drop in crude oil prices between November and December, and a 1.9 pct fall in imported parts and equipment prices, NS said
Input prices fell 2.3 pct from November, the largest monthly fall since July 2001, for a 3.4 pct annual increase, well below expectations of a 1.5 pct fall and a 5.0 pct increase respectively
The fall mainly reflects drops in crude oil prices and in imported parts and equipment prices, NS said
Costs of imported goods as a whole fell 2.5 pct in December from November, the largest monthly fall since November 1996, partly due to the strength of sterling against the dollar
In November, input prices fell 2.3 pct from October, revised from a fall of 1.9 pct, and 6.0 pct year-on-year -- again revised downwards from a 6.4 pct rise previously
Today's figure indicate a benign inflation outlook in the UK -- highlighted by some members of the Monetary Policy Committee in the minutes of the rate-setting body's meeting last month -- and will further cement expectations that the next rate move will be down
The core measure of output prices, which excludes food, beverages, tobacco and petroleum, fell 0.3 pct from November, the biggest fall since July 1999, and was up 2.3 pct year-on-year
This was also below analysts' forecasts for an annual rise of 2.9 pct. In November, core output prices rose 0.2 pct on the month for a 2.8 pct annual rise, revised downwards from the original figures of 0.3 pct and 3.0 pct respectively. The full producer prices report will be posted at the following website: statistics.gov.uk jkm/slm/ |
