Producer Price Survey : January 2017

Reference Number: 

2017-024

Release Date: 

Tuesday, March 7, 2017

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
January 2017, December 2016 and January 2016

TOTAL MANUFACTURING

January
2017
December
2016
January
2016

Producer Price Index (2000=100)

138.2

138.2 r

135.5

          Year-on-Year Growth

2.0

 - 0.7 r

- 7.2

         Month-on-Month Growth

0.0

 0.3 r

- 2.6
r -revised
 
  • Producer Price Index accelerates in January 2017

The Producer Price Index (PPI, 2000=100) for manufacturing rose by 2.0 percent in January 2017 from the negative growth of 7.2 percent during the same period last year. The upsurge can be attributed to the increases of eight out of 20 major sectors including the double-digit increment reflected in the heavily-weighted petroleum products (28.8%). On the other hand, furniture and fixtures (-11.4%) led the 12 sectors that posted decreases. Refer to Tables 1 and A-1.

Month-on-month, PPI remained at its previous month’s level of 138.2. Ten sectors posted increases led by petroleum products (6.7%) while nine major sectors registered decreases led by chemical products (-3.7%). Refer to Tables 1 and A-2.

 
 
 
TABLE A-1   Producer Price Index, December 2016 and January 2017:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

January 2017
December 2016
(revised)

Petroleum Products

28.8

6.3

Food Manufacturing

2.3

1.9

Machinery Except Electrical

5.4

-11.6

Miscellaneous Manufactures

9.9

6.1

Beverages

2.8

4.9

Fabricated Metal Products

0.9

-0.3

Printing

2.0

0.4

Wood and Wood Products

0.8

0.4

 
 

Losers

Year-on-Year Growth (percent)

January 2017
December 2016
(revised)

Electrical Machinery

-2.3

-3.2

Chemical Products

-5.3

-1.1

Non-Metallic MIneral Products

-6.6

0.2

Basic Metals

-2.9

-3.7

Transport Equipment

-1.6

0.9

Rubber and Plastic Products

-2.8

-2.3

Furniture and Fixtures

-11.4

-19.7

Paper and Paper Products

-3.7

-0.6

Footwear and Wearing Apaprel

-3.6

-1.8

Textiles

-4.3 -3.9

Leather Products

-5.1 -6.2

Tobacco Products

-0.3

-0.1

 
 
 
TABLE A-2   Producer Price Index, December 2016 – January 2017:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

January 2017
December 2016
(revised)

Petroleum Products

6.7

6.0

Machinery except Electrical

2.4

0.2

Miscellaneous Manufactures

5.6

-0.8

Food Manufacturing

0.2

0.5

Beverages

0.6

0.0

Furniture and Fixtures

3.7

-0.3

Basic Metals

0.1

0.2

Wood and Wood Products

0.8

-0.2

Printing

0.8

0.1

Leather Products

1.5

-2.0

Fabricated Metal Products

0.0

0.1

 

Losers

Month-on-Month Growth (percent)

January 2017
December 2016
(revised)

Chemical Products 

-3.7

0.2

Transport Equipment

-1.8

0.1

Rubber and Plastic Products

-2.5

0.2

Non-Metallic MIneral Products

-1.9

-0.8

Paper and Paper Products

-2.6

0.1

Electrical Machinery

b/

-0.6

Footwear and Wearing Apparel

-0.5 0.1

Textiles

-0.4 0.0

Tobacco Products

-0.4

0.0

 
 
Notes:
b/ - Less than 0.1 percent decrease
Sectors are ranked according to their contribution to the overall 2000-based growth rate
Year-on-year growth rates are computed by dividing the current month index by previous
year same month index less 1.
Month-on-month growth rates are computed by dividing the current month index by previous
month index less 1.
 
 

 

  • Response Rate

The response rate for January 2017 is 70.2 percent, which corresponds to the retrieval of 523 establishments’ reports out of the 745 samples for the survey.  Refer to Tables 2 and B.

Table B Response Rates For Total Manufacturing
(In Percent)

January 2017

December2016
(revised)
70.2
88.6 r
r-revised

Missing  prices for products of sample establishments are estimated using the short-term geometric mean of the actual prices of responding samples within the same industry class. Revisions to the preliminary estimates are done upon receipt of actual reports from late responding establishments.

   

 

 

FOR THE NATIONAL STATISTICIAN:
 
 
JOSIE B. PEREZ
(Deputy National Statistician, CTCO)
Officer-in-Charge
 

 

 

 
 
 
 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of these is the Producer Price Index (PPI). The PPI, a designated statistics, is generated through the results of the Producer Price Survey (PPS) conducted nationwide. The survey gathers monthly producer prices of selected products of establishments included in the market basket.
 
The PPI is used as a deflator of the Monthly Integrated Survey of Selected Industries (MISSI) to derive indicators for the Volume of Production Index (VoPI) and Volume of Net Sales (VoNSI).
 
  • Method of Index Computation
PPI utilizes the Paasche-type method of index computation. The weights are computed from the value of production to derive concentration ratios from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI or CPBI are available and applied at the beginning of each survey year.
 
For the 2015 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2012 CPBI for Manufacturing Establishments with total employment of 20 and over, which is the latest census results.
 
The formulas in the computation of the PPI are as follows:
 
 
 
           Note:
 
           Starting with January 2017 PPI, a link factor was used to adjust weight effects and measure the correct price change. The weights are adjusted using the 2013 ASPBI. 
            

 

  • Industry Coverage

Starting with January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 industry groupings of the 2016 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Food manufacturing *

C11

Beverages

C12

Tobacco products

C13

Textiles*

C14,C152

Footwear and wearing apparel

C151

Leather products

C16

Wood and wood products*

C17

Paper and paper products

C18

Printing and reproduction of recorded media

C19

Petroleum products*

C20,C21

Chemical products*

C22

Rubber and plastic products*

C23

Non-metallic mineral products*

C24

Basic Metals*

C25

Fabricated metal products

C262,C275,C28,C263,C268

Machinery except electrical*

C261,C264,C27,C29301

Electrical machinery*

C29 except C29301,C30

Transport equipment

C31

Furniture and fixtures

C265,C266,C267,C32

Miscellaneous manufactures

Note:  * - Major sectors categorized into sub-sectors

 

 

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