SUNBIZ

Industrial Production Index: How It Works, What It Means

This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at the HFC
01 Apr 2017 10:50
Industrial Production Index:  How It Works, What It Means
HFC Bank

This is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Treasurer at the HFC Bank, Peter Fuata.

 

Industrial Production Index (Base Average 2011=100) September Quarter 2016

Industrial Production Index (IPI) is a weighted economic indicator which measures the real production output of different yet relevant industries within the Fiji economy such as mining and quarrying, sugar, electricity and manufacturing. Investors and the general public can use this data to monitor and forecast growth in respective industries.

A growth on a quarter-on-quarter for a particular industry signifies that the companies within that industry are performing well.

Fiji’s Industrial Production Index is called The All Group Industrial Production Index. The September quarter of 2016 stood at 114.9.

Compared to its previous June quarter of 2016, there was an aggregate increase of 5.2%.  The major industry movements for the September quarter 2016 were as follows:

 

Mining and Quarrying Index increased by 57.7%

Meat  & Meat Products Index decreased by 2.4%

Sugar Index  increased by 75.5%

Non-alcoholic beverages and cigarettes index decreased by 24.3%

Wearing Apparel Index increase by 0.8%

Electricity index fell by 3.6%

 

The All Groups including sugar shows an increase when compared to the June quarter of 2016 but a decline when compared with September quarter of 2015. Since sugar production is seasonal, most of the crushing is done in the latter half of the year.

Given the significant weight for sugar in the index, an increase or decrease in its production volume is bound to impact the overall index.

 

Industrial Highlights

Analysis of major movement industries

 

The mining & quarrying index stood at 131.8. The index showed an increase when compared to the June quarter of 2016 and the September quarter of 2015. Higher grade of ore being extracted during the quarter was a major factor to the increase.

The frozen poultry, meat and canned fish index stood at 95.8. The index showed decline when compared to the June quarter of 2016 and the September quarter of 2015. The decline in canned fish production led to the overall decrease

Sugar index stood at 205.9. The index showed an increase when compared to the June quarter of 2016 but a decline when compared to the September quarter of 2015. Most of the crushing is done in this quarter of the year. Lower volume of sugar was produced when compared to September quarter of 2015 due to effects of TC Winston.

The non-alcoholic drinks & cigarettes index stood at 108.7.

The index showed a decline when compared to the June quarter of 2016 and the September quarter of 2015. The decrease in mineral water production led to the overall decline

The wearing apparel index stood at 105.7. The index showed an increase when compared to the June quarter of 2016 and the September quarter of 2015. The production of wearing apparel are largely dependent on orders received.

The electricity index stood at 108.2. The index showed a decline when compared to the June quarter of 2016 but an increase when compared to the September quarter of 2015. The increase and decrease mentioned above reflects electricity consumption.

Alcoholic drinks stood at 106.9. The index showed an increase when compared to the June quarter of 2016 nut a decline when compared to the September quarter of 2015. The increase in alcoholic spirits production have led to the overall increase.

The water index stood at 110.9. The index showed an increase when compared to the June quarter of 2016 but a decline when compared to the September quarter of 2015. The increase and decrease mentioned above reflects water usage.

The All Group Industry Production Index as at September quarter of 2016 compared to the September quarter of 2015 has decreased.

In terms of the All Group IPI excluding sugar across 2016 when compared to 2015, we see a lower volume of production in 2016 as industries slowly recover from TC Winston.

Fijisun E-edition
Tanoa Plaza Hotel Suva
Subscribe-to-Newspaper
Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: