Mining & Quarrying and Manufacturing Indices Increased by 0.6% in June 2024

• According to data on the Producer Price Index (PPI) released by the Statistical Institute of Jamaica (STATIN), output prices in the Mining and Quarrying industry increased by 0.6% for June 2024 due to a similar 0.6% increase in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• For the Manufacturing industry, there were gains in the major groups: 'Food, Beverages & Tobacco' saw a 1.2% rise, 'Chemical and Chemical Products' went up by 0.6%, and 'Paper and Paper Products' increased by 1.5%. However, these were offset by a 1.1% decline in the index for 'Refined Petroleum Products', which resulted in an over gain in the index for the Manufacturing industry of 0.6%.
• Despite the June 2024 increase in the index, the point-to-point index for the Mining & Quarrying industry declined by 2.9%. This was a result of a 3.2% fall in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry increased by 3.4%. Increases in the major groups 'Refined Petroleum Products' (10.8%) and 'Food, Beverages & Tobacco' (2.6%) contributed to this upward movement.
• Geopolitical tensions in Europe and the Middle East could disrupt oil prices and supply chains, raising producer costs. However, the global shift to renewables and increased oil production, especially by the US, might lower demand and prices. Additionally, OPEC+ plans to unwind voluntary cuts sooner than expected, raising concerns about market absorption in 2025.
• The Producer Price Index (PPI) is a significant economic indicator that tracks the average fluctuation in selling prices that domestic producers of goods and services experienced over time. Currently, the industries being tracked are Manufacturing Industry and Mining and Quarrying.

(Sources: STATIN & NCBCM Research)