Manufacturing prices drop by over 7%

The value of manufactured products has fallen by 7

The value of manufactured products has fallen by 7.1 per cent in the 12 months to the end of February 2003, new data released have shown.

According to a report from the Central Statistics Office, factory gate prices decreased by 1.5 per cent in the month of February.

Today's figures are the ninth fall in the last 10 months for output prices as manufacturers cut prices in an effort to simulate slowing demand.

The index for export sales also dropped by 1.8 per cent while the index for home sales increased by 0.2 per cent in February.

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The cost of radio, television and communication equipment fell 7.9 per cent while office equipment and computers also cost 1.6 per cent less than in January.

The price of equipment in the latter category has fallen 21 per cent in the 12 months to February 2003.

This rise was offset by a 6 per cent increase in the price of energy products compared with the previous year.