Factory Gate Prices Stable In October

The annual output price index for home sales of manufactured products rose by 2.5% the same as September 2012. The index excluding food, beverages and tobacco and petroleum was 1.4% compared with 1.2% in the previous three months. The total input price index increased 0.1% compared with a fall of 1% in September.

Producer Output Price Rises In September

The output prices of home sales of manufactured products increased by 2.5% in the year to September 2012 compared with an increase of 2.3% last month according to a statistical bulleting from the ONS. Between August and September the index for output rose by 0.5%, the same as between July and August. Input prices however fell b y 1.2% in the year to September 2012 compared with a fall of 1.1% last month. Input prices also fell between August and September by 0.2% compared with a rise of 1.9% between July and August. The largest changes in output prices were in tobacco and alcohol with an 8.7% increase, petroleum products 3.4%, computer, electrical and optical with 2.9% and other manufactured goods with a 2.8% change. The largest changes in input price were in imported metals with a -12.8% percentage change and home food materials with a change of 10.1%. Fuel increased by 7.4% and crude oil fell by 2.3%. Imported chemicals and imported parts and equipment also fell by 3.6% and 3% respectively.

Factory Gate Prices Up 5.7%

The producer prices index from the ONS tells us that factory gate prices for home sales of manufactured goods increased 5.7% in the year June compared with 5.4% in May. The price excluding the more volatile sectors such as food, beverages, tobacco and petroleum increased by 3.2%. The output price excluding excise duty increased by 5.8%.

Over ther month between May and June the output price index rose by 0.1%. The increase mainly reflects increases in the prices of food and other manufatures.

Pricen Rises For Producers In October

Output prices for home sales of manufactured goods rose 4% in the year to October and 0.6% over the month. Input prices for materials and fuels for manufacturing rose by 8% in the year to October and 2.1% over the month.

On the output side, petroleum products increased by 10.6% and chemicals and pharmaceuticals by 6% over the year while clothing, textiles and leather increased by only 1.4%. Within the inputs imported metals increased by 20.5% and crude oil increased by 16.2%. Fuel fell by 4.8% over the year to October.

Demand For Manufactured Goods Slightly Weaker

The latest Industrial Trends report from the CBI says that overall demand for UK manufactured goods weakened slightly in June. Order books are still close to their long-term average. Export orders are however also weaker compared with last month but almost normal. Output is still expected to be increased during the next three months. Prices are expected to rise but more slowly than the last three months. Consumer goods are not exopected to rise and no change is expected in capital goods. Stocks are more than adequate to meet demand for the third month in a row, but below the survey's long-run average.

Euro Area Trade Surplus Down On Year

The euro area had a trade surplus of 1.8bn euros with the rest of the world in April 2010 compared with a 2.6bn euro surplus in April 2009. Exports fell by 2.4% in April 2010 against March 2010 and imports fell by 3.5%. The first estimates for the EU27 report a 10.2bn euro trade deficit on an annual basis. On a monthly basis there was a deficit of 7.2bn euros. Imports fell by 2.8% and exports by 2.4%.

The figures for January to March 2010 show that the EU27 deficit for energy rose by 66.6bn euros but the surplus for manufactured goods rose by 35.9bn euros. EU27 exports to all of its major trading partners grew in January-March 2010 especially to China (+48%), Brazil (+43%) and Turkey (+41%). The biggest increase in imports was to Russia with 35%.

The EU27 trade surplus with the US increased by 14.2bn euros. The trade deficit with China decreased from 37bn euros to 34.6bn euros but increased with Russia from 10.5bn euros to 18.2bn euros. The largest total trade deficit was the UK with 24.9bn euros.