The industrial production index for the manufacturing sector rose 3.4% the third quarter of 2004 from a year earlier, following a 1.1% year-on-year increase in the second quarter of 2004, the Census & Statistics Department says.

The corresponding producer price index rose 2%, lower than the 2.7% year-on-year increase in the second quarter of 2004.

Indices of industrial production reflect changes in the volume of local manufacturing output after discounting the effect of price changes. The price changes are measured by the producer price indices for manufacturing industries compiled from data on producer prices of industrial goods/services collected from the same survey.

Compare with a year earlier, the basic metals and fabricated metal products industry had the largest increase in output (+14%), followed by the electrical and electronic products, machinery, professional equipment and optical goods industry (+7.1%), the food, beverages and tobacco industry (+6.7%), the wearing apparel (except footwear) industry (+3.3%), the chemical, rubber, plastic and non-metallic mineral products industry (+1.6%) and the textiles (including knitting) industry (+0.2%).

A drop in output was recorded for the paper products and printing industry (-3.6%).

On a seasonally adjusted basis, the industrial production index rose 2.6% over the last quarter.

Producer price indices reflect the prices of local manufacturing output. They measure the actual prices (net of any discounts or rebates allowed to buyers, plus any surcharges) received by manufacturers. Transportation and other incidental charges are not included.

Compare with a year earlier, the plastic products industry had the largest increase in producer prices (+8.8%), followed by the machinery, equipment, apparatus, parts and components industry (+2%), the fabricated metal products (except machinery and equipment) industry (+0.9%) and the textiles (including knitting) industry (+0.3%).

But a drop in producer prices was recorded for the consumer electrical and electronic products industry (-9.1%), the wearing apparel (except footwear) industry (-3.8%) and the paper products and printing industry (-0.4%).