Producer Price Index : July 2019

Reference Number: 

2019-140

Release Date: 

Friday, August 30, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
July 2019, June 2019 and July 2018

TOTAL MANUFACTURING

July
2019
June
2019
July
2018

Producer Price Index (2000=100)

135.3

135.8 r

133.9

Year-on-Year Growth (%)

 1.1

1.4

0.9

Month-on-Month Growth (%)

-0.4

-0.2

-0.1
r -revised
 
  • Producer Price Index posts slight increment in July 2019

The Producer Price Index (PPI, 2000=100) for manufacturing increased at an annual rate of 1.1 percent in July 2019. This annual growth rate of the PPI was slightly higher than its annual growth rate of 0.9 percent in July 2018 but lower than the annual growth rate of 1.4 percent in June 2019. The upturn can be attributed to the increases of five major industry groups with furniture and fixtures posting a double-digit increment of 64.0 percent. On the other hand, leather products, which dropped by 12.5 percent, led the 14 major industry groups that posted annual decreases, while printing reflected flat growth. Refer to Tables 1 and A-1.

Month-on-month, PPI descended by 0.4 percent in July 2019 compared with the previous month’s monthly rate of negative 0.2 percent. Nine major industry groups posted negative growths led by electrical machinery with monthly growth rate of negative 3.3 percent. Moreover, PPI for nine major industry groups posted monthly increments while two major industry groups remained the same. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

 
TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
June 2019 and July 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

July 2019
June 2019

Gainers

 

 

Furniture & Fixtures

64.0

60,6r

Non-Metallic Mineral Products

8.0

7.6r

Rubber & Plastic Products

4.2

5.2r

Tobacco Products

4.0

3.9

Beverages

2.9

3.3r

Printing

0.0

0.3

Losers

 

 

Food Manufacturing

-4.5

-4.6r

Electrical Machinery

-5.1

-0.9r

Chemical Products

-5.5

-4.9

Basic Metals

-7.9

-6.4r

Transport Equipment

-2.3

-2.5r

Petroleum Products

-2.9

-1.9

Fabricated Metal Products

-9.6

-8.4r

Machinery Except Electrical

-1.9

-3.5

Miscellaneous Manufactures

-8.8

-7.3

Footwear & Wearing Apparel

-7.8

-9.9r

Leather Products

-12.5

-22.4r

Wood & Wood Products

-5.9

-7.1r

Paper & Paper Products

-2.4

-1.0r

Textiles

-2.4

-1.6r

r - revised
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate
 
 
 
TABLE A-2   Month-on-month Growth Rate (%) of Producer Price Index,
June 2019 and July 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

July 2019
June 2019

Gainers

 

 

Machinery Except Electrical

1.7

-0.8

Transport Equipment

0.6

-0.6r

Leather Products

7.1

-16.8r

Food Manufacturing

0.1

0.2r

Non-Metallic Mineral Products

0.3

-1.1r

Footwear & Wearing Apparel

0.2

-5.7r

Textiles

0.3

0.3r

Wood & Wood Products

0.2

-1.4r

Tobacco Products

a/

0.1

Printing

0.0

0.0

Beverages

0.0

0.0

Losers

 

 

Electrical Machinery

-3.3

0.2r

Petroleum Products

-0.8

-0.7

Basic Metals

-1.3

-0.9r

Fabricated Metal Products

-1.5

3.8

Paper & Paper Products

-0.6

-1.3r

Miscellaneous Manufactures

-0.6

-0.7

Rubber & Plastic Products

-0.2

-0.1

Chemical Products

-0.1

0.2

Furniture & Fixtures

-0.5

0.3r

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

 

 

 

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 through the results of the Producer Price Survey (PPS) which is 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 2019 PPI, the weights of the industry groups and sub-industry classes were computed based from the results of the 2015 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:
 
 

 

  • 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.

 
 
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 2019 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 industry groups categorized into sub-industry classes

 

 

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

 

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