Producer Price Survey : January 2018

Reference Number: 

2018-036

Release Date: 

Friday, March 2, 2018

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
January 2018, December 2017 and January 2017

TOTAL MANUFACTURING

January
2018
December
2017
January
2017

Producer Price Index (2000=100)

131.4

131.1 r

134.1

          Year-on-Year Growth

 -2.0

 -1.7

-1.1

         Month-on-Month Growth

  0.3

  -0.2

0.6
r -revised
 
  • Producer Price Index slightly declines in January 2018

The Producer Price Index (PPI, 2000=100) for total manufacturing slightly declined at 2.0 percent in January 2018 from a negative 1.1 percent during the same period of the previous year. The decrease can be attributed to the decrements shown by 11 out of the 20 major sectors with two major sectors posting double digit decreases namely: fabricated metal products with -20.2 percent and leather products with -13.3 percent. Refer to Tables 1 and A-1.

On a month-on-month basis, PPI increased by 0.3 percent from the previous month’s rate of negative 0.2 percent with petroleum products (9.7 percent) dominating the increase along with other 12 major sectors. The remaining major sectors posted decreases. Refer to Tables 1 and A-2.

 
 
 
 
 
 
TABLE A-1   Producer Price Index, December 2017 and January 2018:
(2000=100)
 
 

INDUSTRY GROUP

Year-on-Year Growth (percent)

January 2018
December 2017
(revised)

Gainers

 

 

Petroleum Products

7.5

3.1

Electrical Machinery

3.0

0.8

Tobacco Products

6.7

1.9

Machinery Except Electrical

2.7

-1.4

Beverages

1.8

-1.8

Miscellaneous Manufactures

5.4

b/

Non- Metallic Mineral Products

1.2

-5.2

Basic Metals

0.7

2.8

Furniture & Fixtures

1.2

-19.4

Losers

 

 

Food Manufacturing

-3.0

-1.8

Fabricated Metal Products

-20.2

-29.9

Transport Equipment

-3.7

-2.2

Rubber and plastic products

-5.4

-3.9

Chemical Products (excludes plastic)

-2.3

-1.5

Footwear & Wearing Apparel

-4.1

-3.8

Leather Products

-13.3

-21.2

Paper & Paper Products

-3.0

-0.2

Printing

-1.4

2.3

Wood & Wood Products

-0.7

-0.3

Textiles

-0.1

0.7

 
 
 
 
TABLE A-2   Producer Price Index, December 2017 and January 2018:
(2000=100)
 
 
 

INDUSTRY GROUP

Month-on-Month Growth (percent)

January 2018
December 2017
(revised)

Gainers

 

 

Petroleum Products

9.7

0.4

Machinery Except Electrical

4.1

-0.4

Electrical Machinery

1.7

-0.3

Basic Metals

1.9

-0.8

Beverages

2.3

0.0

Miscellaneous Manufactures

6.4

-0.4

Non- Metallic Mineral Products

1.2

-0.1

Furniture & Fixtures

5.5

-0.7

Leather Products

3.8

-0.8

Fabricated Metal Products

0.5

-1.0

Footwear & Wearing Apparel

0.6

-2.1

Wood & Wood Products

0.5

0.0

Tobacco Products

4.8

0.0

Losers

 

 

Transport Equipment

-1.1

-0.1

Rubber and plastic products

-3.4

-0.1

Food Manufacturing

-0.3

0.4

Chemical Products (excludes plastic)

-0.9

-0.1

Paper & Paper Products

-1.8

-1.4

Printing

-2.6

b/

Textiles

-0.8

b/

 
 
 
 
Notes:
a/ - Less than 0.1 percent increase
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 the same month index of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month index by the previous month index less 1.
 
 
 
  • Response Rate

The response rate for January 2018 is 71.7 percent, which corresponds to the retrieval of 533 establishments’ reports out of the 743 samples for the survey. Refer to Tables 2 and B..

Table B Response Rates For Total Manufacturing
(In Percent)

January 2018

December 2017
(revised)
71.7
89.3r
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.

 
 

 

 
 
 
 
 
LISA GRACE S. BERSALES, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
 
 
 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI 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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 ASPBI for Manufacturing Establishments with total employment of 20 and over, which is the latest survey results.
 
The formulas in the computation of the PPI are as follows:
 
 
 
           Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. 

           
  • 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 2018 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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