Producer Price Survey : November 2016

Reference Number: 

2017-03

Release Date: 

Thursday, January 5, 2017

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
November 2016, October 2016 and November 2015

TOTAL MANUFACTURING

November
2016
October
2016
November
2015

Producer Price Index (2000=100)

134.6

133.6 r

139.5

Year-on-Year Growth

- 3.5

 - 3.9 r

- 6.2

Month-on-Month Growth

0.8

- 0.3 r

0.3
r -revised
 
  • Producer Price Index slowly declines in November 2016

The Producer Price Index (PPI, 2000=100) for manufacturing moved downward by 3.5 percent in November 2016 from the negative 6.2 percent during the same period last year. This was brought about by the double-digit decreases of two major sectors: furniture and fixtures (-19.0%) and machinery except electrical (-11.5%).In addition, decrements were noted in the other 11 major sectors including the heavily-weighted petroleum products (-6.6%) and electrical machinery (-2.3%). On the other hand, miscellaneous manufactures (7.0%) led the seven sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis,  the PPI rose by 0.8 percent due to the increases posted by 14 major sectors led by electrical machinery (1.9%) and machinery except electrical (1.6%).   On the other hand, four major sectors reflected decreases while two sectors posted flat growths. Refer to Tables 1 and A-2.

 
 
 
 
TABLE A-1   Producer Price Index, October 2016 and November 2016:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

November 2016
October 2016
(revised)

Food  Manufacturing   

1.6

2.2

Beverages

4.3

4.3

Miscellaneous Manufactures     

7.0

6.7

Non-Metallic Mineral Products            

1.5

1.9

Wood and Wood Products  

4.1

3.6

Textiles

0.8

0.1

Tobacco Products

0.1

0.1

 

Losers

Year-on-Year Growth (percent)

November 2016
October 2016
(revised)

Machinery  except  Electrical  

-11.5

-13.1

Petroleum Products

-6.6

-5.2

Electrical Machinery

-2.3

-3.7

Basic Metals 

-5.9

-6.4

Transport Equipment

-1.0

-0.7

Furniture and fixtures       

-19.0

-19.6

Chemical  Products         

-1.0

-0.6

Rubber and Plastic Products

-1.6

-1.2

Leather Products

-9.6

-10.1

Footwear and Wearing Apparel

-0.9

-1.9

Paper and Paper Products

-0.8

-0.6

Fabricated Metal Products

-0.2

-0.4

Printing

-0.6

-0.6

 
 
TABLE A-2   Producer Price Index, October 2016 – November 2016:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

November 2016
October 2016
(revised)

Electrical Machinery  

1.9

-2.5

Petroleum Products      

0.3

4.7

Machinery except Electrical

1.6

0.5

Leather Products

0.8

0.2

Food Manufacturing

a/

b/

Fabricated Metal Products

0.4

0.1

Chemical Products

a/

0.3

Footwear and Wearing Apparel     

0.5

0.4

Beverages

0.0

0.0

Miscellaneous Manufactures

1.0

-0.1

Rubber and Plastic Products 

0.1

0.0

Printing

0.1

0.0

Tobacco Products

0.0

0.0

Textiles                     

0.2

0.1

Furniture and  Fixtures 

1.3

0.0

Paper and Paper Products

-0.3

b/

 

Losers

Month-on-Month Growth (percent)

November 2016
October 2016
(revised)

Transport Equipment

-0.2

0.3

Basic Metals

-0.3

-0.6

Non-Metallic Mineral Products

-0.3

-0.2

Wood and Wood Products

-0.3

0.1

 
 
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.
 
 
 
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:
 
 

 

  • 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

 

  • Response Rate

The response rate  for November 2016 is 74.4 percent, which corresponds to the retrieval of 560 establishments’ reports out of the 753 samples for the survey.  Refer to Tables 2 and B.

Table B Response Rates For Total Manufacturing
(In Percent)

November 2016

October 2016
(revised)

74.4

89.1 r

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.
National Statistician and Civil Registrar General
 
 

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