Producer Price Index : February 2020

Reference Number: 

2020-060

Release Date: 

Tuesday, March 31, 2020

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
for Total Manufacturing
February 2020, January 2020 and February 2019

Category

February
2020
January
2020
February
2019

Producer Price Index (2000=100)

132.2

132.3 r

138.9

Year-on-Year Growth (%)

-4.8

-5.2 r

3.4

Month-on-Month Growth (%)

-0.1

-0.1 r

-0.5
r -revised
 

Year-on-Year

The Producer Price Index (PPI, 2000=100) for manufacturing continued to decline at an annual rate of 4.8 percent in February 2020.  In January 2020, the downward trend was faster at 5.2 percent.  On the contrary, the PPI in February of the previous year increased at an annual rate of 3.4 percent.

The decline in the PPI in February 2020 can be attributed to the decreases in the indices of 15 major industry groups, with three major industry groups posting double-digit decrements as follows:

• leather products (-14.6%),
• fabricated metal products (-13.4%), and
• transport equipment (-11.1%).

On the other hand, five major industry groups had indices that rose in February 2020 with furniture and fixtures having the highest annual growth of 20.0 percent. (Tables 1 and A-1)

 

Figure 1

 

Month-on-Month

Month-on-month, the PPI posted a slight decrement of 0.1 percent in February 2020, the same rate of decline recorded in January 2020. In February of the previous year, the PPI dropped at a faster monthly rate of 0.5 percent.

Ten of the major industry groups posted negative monthly growth rates in February 2020 which was led by basic metals with monthly rate of -1.8 percent. Moreover, PPI for seven major industry groups posted monthly increments while indices for three major industry groups remained the same.(Tables 1 and A-2)

 

Figure 2

 

TABLE A-1  Year-on-Year Growth Rate (%) of Producer Price Index
by Major Industry Group
January 2020 and February 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

February 2020
January 2020

Gainers

 

 

Petroleum Products

2.6

-1.5r

Tobacco Products

4.8

7.5

Beverages

2.6

3.6r

Furniture & Fixtures

20.0

18.8r

Printing

1.8

1.8r

Losers

 

 

Transport Equipment

-11.1

-9.9r

Electrical Machinery

-4.1

-5.6r

Chemical Products

-9.1

-8.0r

Fabricated Metal Products

-13.4

-13.8

Machinery Except Electrical

-4.1

-6.2r

Basic Metals

-2.3

-2.2r

Footwear & Wearing Apparel

-8.7

-10.3r

Rubber & Plastic Products

-2.7

-2.9r

Non-Metallic Mineral Products

-2.6

-1.2r

Food Manufacturing

-0.4

-1.2r

Wood & Wood Products

-8.6

-10.7r

Paper & Paper Products

-3.9

-3.5

Leather Products

-14.6

-13.1r

Textiles

-5.2

-5.3r

Miscellaneous Manufactures

-1.6

-1.1r

r - revised
Note:
1) Industry groups are ranked according to their contributions to the overall growth rate
 
 
 
TABLE A-2  Month-on-month Growth Rate (%) of Producer Price Index
by Major Industry Group
January 2020 and February 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

February 2020
January 2020

Gainers

 

 

Electrical Machinery

1.1

b/r

Tobacco Products

4.3

0.4

Food Manufacturing

0.4

0.2r

Rubber & Plastic Products

0.4

-1.7r

Footwear & Wearing Apparel

0.7

0.1r

Petroleum Products

a/

1.9r

Furniture & Fixtures

a/

24.4r

Beverages

0.0

1.2r

Printing

0.0

1.8r

Fabricated Metal Products

0.0

b/

Losers

 

 

Machinery Except Electrical

-1.7

0.2r

Transport Equipment

-0.7

-0.7r

Basic Metals

-1.8

2.6r

Paper & Paper Products

-0.8

-0.5

Chemical Products

-0.2

-2.5r

Miscellaneous Manufactures

-0.7

1.3r

Leather Products

-1.7

7.4r

Non-Metallic Mineral Products

-0.1

0.2r

Wood & Wood Products

-0.2

-0.9r

Textiles

-0.3

0.5

r - revised
a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

(Sgd.) CLAIRE DENNIS S. MAPA, 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 from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
 
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 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 these are applied at the beginning of each survey year.
 
For the 2020 PPI, the weights of the major industry groups and industry sub-classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Industry Class
 
 
Industry Class
 
 
Industry Group
 
 
Industry
 
 

Note:

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

 

  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 
  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but no received response during the release date. Results are revised accordingly when the actual data are received and these revisions are reflected in the next release.

 

  • Industry Coverage

Starting with the 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 major industry groupings of the 2020 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

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

* - Major industry groups categorized into industry sub-classes

 

 

See more at the Producer Price Survey (PPS) main page.

 

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