Manufacturing output prices continue rising with 11% YoY growth in October

The manufacturing output price index showed “strong growth” in October, with a year-on-year rate of change of 11%, influenced by the rise in energy prices, Portugal Statistics (INE) reported on Thursday.

According to INE’s October Economic Survey, the acceleration of the manufacturing output price index “recorded the highest growth of the current series in October, reaching a year-on-year rate of change of 11% (10.1% in the previous month), mainly reflecting the strong growth of energy and intermediate goods prices.

Consumer goods producer prices have been rising considerably lower than the other components, but still accelerating to a year-on-year change of 3.5% (2.6% in the previous month).

The turnover index in services (includes retail trade), meanwhile, maintained a year-on-year change above 10%, decelerating 0.4 percentage points from the previous month to 10.3%, which, INE explained, reflects the positive change in prices and also the recovery in activity.

Compared to September 2019, that index increased by 1.5%.

In turn, the production index in construction recorded a year-on-year growth of 1.9% in September, after increasing by 2.3% in the previous month, and compared to September 2019, it showed an increase of 0.6%.

The quantitative indicators of economic activity synthesis and private consumption continued to decelerate in September 2021, while the investment indicator showed negative year-on-year rates of change in August and September.

In October, the economic climate indicator increased, after having shown irregular behaviour since July, reaching the level recorded in February 2020, before the first case of Covid-19 was recorded in Portugal.

Finally, in October, the year-on-year change in the consumer price index (CPI) was 1.8%, up 0.3 percentage points from the previous three months.