Producer Price Survey : June 2017

Reference Number: 

2017-092

Release Date: 

Friday, August 4, 2017

 

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

TOTAL MANUFACTURING

June
2017
May
2017
June
2016

Producer Price Index (2000=100)

131.5

132.1 r

135.2

          Year-on-Year Growth

- 2.8

 - 2.3

- 3.7

         Month-on-Month Growth

- 0.5

 - 0.4

0.03
r -revised
 
  • Producer Price Index slightly decreases in June 2017

The Producer Price Index (PPI, 2000=100) for manufacturing dropped at a rate of 2.8 percent in June 2017 from negative 3.7 percent during the same period of previous year. This can be attributed to the significant decline of three major sectors namely; fabricated metal products, leather products and furniture and fixtures, which decreased by 50.9 percent, 19.4 percent and 15.2 percent, respectively. Refer to Tables 1 and A-1.

By month, PPI likewise went down by 0.5 percent from the previous month’s rate of negative 0.4 percent with fabricated metal products (-11.6%) dominating the decline along with other six major sectors. Meanwhile, eleven sectors posted increases while two sectors reflected flat growth. Refer to Tables 1 and A-2.

 

 
 
 
 
 
TABLE A-1   Producer Price Index, May 2017 and June 2017:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

June 2017
May 2017
(revised)

Petroleum Products

7.7

8.5

Food Manufacturing

0.4

0.4

Miscellaneous Manufactures

3.7

2.7

Basic Metals

0.9

2.4

Transport Equipment

0.3

0.2

Tobacco Products

1.6

1.7

Printing

2.6

3.5

Paper and Paper Products

0.7

-1.5

Footwear & Wearing Apparel

0.1

1.2

 
 

Losers

Year-on-Year Growth (percent)

June 2017
May 2017
(revised)

Fabricated Metal Products

-50.9

-44.1

Electrical Machinery

-2.8

-1.3

Machinery Except Electrical

-5.7

-6.5

Rubber and Plastic products

-4.2

-3.3

Non- Metallic Mineral Products

-4.2

-3.2

Beverage

-2.6

-2.6

Chemical Products (excludes plastic)

-1.5

-1.8

Furniture & Fixtures

-15.2

-20.9

Leather Products

-19.4

-21.4

Textile

-3.7

-3.7

Wood & Wood Products

-0.4

1.6

 
 
 
TABLE A-2   Producer Price Index, May 2017 and June 2017:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

June 2017
May 2017
(revised)

Food Manufacturing

0.3

b/

Machinery Except Electrical

0.6

0.1

Transport Equipment

0.3

0.1

Textile

0.1

0.2

Printing

a/

a/

Paper & Paper Products

1.5

-0.9

Miscellaneous Manufacture

1.5

-0.5

Leather Products

1.3

-13.3

Electrical Machinery

0.7

-0.3

Beverage

0.5

-1.3

Rubber and plastic products

a/

-1.1

Tobacco Products

0.0

0.0

Non- Metallic Mineral Products

0.0

2.1

 
 

Losers

Month-on-Month Growth (percent)

June 2017
May 2017
(revised)

Petroleum Products

-1.2

-2.2

Basic Metals

-0.5

-2.4

Footwear & Wearing Apparel

-1.0

-0.8

Chemical Products (excludes plastic)

-0.5

-0.2

Wood & Wood Products

-1.2

1.0

Furniture & Fixtures

-1.3

0.5

Fabricated Metal Products

-11.6

-2.8

 
 
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 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 June 2017 is 81.0 percent, which corresponds to the retrieval of 608 establishments’ reports out of the 751 samples for the survey.  Refer to Tables 2 and B..

Table B Response Rates For Total Manufacturing
(In Percent)

June 2017

May 2017
(revised)
81.0
91.6 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.

 
 

 

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 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 2017 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 2017 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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