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Industrial Production Index for First Quarter 2017

The Industrial Production Index (IPI) is an economic indicator that meas­ures real output or the production vol­ume changes in industries such as mining and quarrying, manufacturing, electricity and water. It
25 Nov 2017 11:00
Industrial Production Index for First Quarter 2017
Shoran Devi

The Industrial Production Index (IPI) is an economic indicator that meas­ures real output or the production vol­ume changes in industries such as mining and quarrying, manufacturing, electricity and water. It measures the growth rate in different industry groups of the economy in a stipulated period of time.

The All Group Index registered a 7.0 per­cent increase when compared to the March quarter of 2016 but was lower than the index when compared with the preceding quarter.

Sugar production is seasonal, with crush­ing carried out 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 have an impact on the overall index.

Industrial Highlights

The following index showed an increase when compared to the December and the March quarter of 2016:

n The mining and quarrying index stood at 109.4. The increase in bauxite pro­duction during the quarter led to the overall increase.

n The frozen poultry, meat and canned fish index stood at 99.5 due to an in­crease in frozen poultry production.

n The non-alcoholic drinks and ciga­rettes index stood at 141.7 mainly due to the increase in mineral water pro­duction.

n The paper and paper board, other arti­cles of paper and printing index stood at 128.3. The increase in the produc­tion of paper and paper board led to the overall increase.

n The manufacture of furniture index stood at 99.8. The increase in the fur­niture index reflects the increase in orders received.

n The electricity index stood at 125.5. The increase reflects electricity con­sumption.

n The following index showed a decline when compared to the December and the March quarter of 2016:

n The dairy products including ice-cream index stood at 126.9. The decline in milk production led to the overall decrease.

n The rice, flour and other grain mill products index stood at 95.1. This was mainly due to decline in flour produc­tion.

n The wearing apparel index stood at 90.0. The decline in the orders received locally and overseas led to overall de­cline.

n The saw-milling and planing of wood and manufacture of products of wood, cork plaiting material index stood at 95.1. This was largely due to decrease in the sawn timber production.

n The cement, concrete products, cut­ting and shaping of stone, basic metal and casting of metal index stood at 108.3. The decline in the production of cement led to the overall decline.

The sugar index stood at 0.0. The index showed a decline when compared to the December quarter of 2016 but remained un­changed when compared to the March quar­ter of 2016.

The alcoholic drinks index stood at 107.3. The index showed a decline when compared to the December quarter of 2016 but an in­crease when compared to the March quar­ter of 2016. The decline in alcoholic spirits production have led to the overall decrease.

The water index stood at 117.1. The index showed a decline when compared to the December quarter of 2016 but an increase when compared to the March quarter of 2016. The fluctuations noted reflects the wa­ter usage.

Industrial production and capacity lev­els are expressed as an index level relative to a base year. In other words, they do not express absolute production volumes or val­ues, but the percentage change in produc­tion relative to the base year.

Industry-level data are useful for managers and investors within specific lines of busi­ness, while the composite index is an impor­tant macroeconomic indicator for the policy makers, economists, analysts and investors.

The Industrial Production Index is sensi­tive to consumer demand and interest rates. As such, Industrial Production data is some­times used as a tool for future GDP and eco­nomic performance projections. Industrial Production statistics are also used to meas­ure inflation by central banks.

It generally serves as a leading indicator of economic health, as it shows a more current view of business activities and a general picture of how the different sectors of the economy are performing.

Feedback: maraia.vula@fijisun.com.fj



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