Manufacturers’ prices rose again in September compared with the same month last year, but at a weaker pace than in the previous four months, Statistics Canada said today.

At the same time, the price of raw materials used by factories accelerated for the seventh month in a row.

Manufacturers received 4.6% more for their goods than they did in September last year, StatsCan said. That’s the third consecutive month of weaker growth.

The government agency noted the rate of growth in the Industrial Product Price Index (IPPI) has been decelerating since it reached a peak of 7.0% in June.

Prices for petroleum and coal products continued to have a major influence on the 12-month change, rising 28.3% from September 2003. If petroleum and coal product prices had been excluded, the IPPI would have increased only 3.0%, rather than 4.6%.

Meanwhile, StatsCan said raw materials cost factories substantially more, as manufacturers paid 25.0% more for their inputs than they did in September last year. This was the largest 12-month gain since June 2000 when raw materials prices surged 27.2%.

In separate release, StatsCan reported that manufacturers remain optimistic in their outlook for the fourth quarter of 2004

In the Business Conditions Survey for October, manufacturers said they anticipated further improvements for production and employment in the coming quarter, while they were very satisfied with the current level of orders received.

In October, 22% of manufacturers stated they would increase production in the fourth quarter of 2004, while 9% expected to decrease production, leaving the balance of opinion at +13. This was an increase from the +10 posted in July.

The October balance of opinion on the current level of orders received increased a further 7 points to +14. This is the strongest balance posted since a +21 in April 2000, StasCan said.

The balance of opinion for employment prospects for the next three months was up 3 points to +9 in October. While 91% of manufacturers stated that they would keep or add to their work force, only 9% indicated that they expected to decrease employment in the fourth quarter. This represents the most positive employment outlook since the April 1998 survey, StatsCan said.