Producer Price Index : May 2019

Reference Number: 

2019-109

Release Date: 

Tuesday, July 2, 2019

 

 

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

TOTAL MANUFACTURING

May
2019
April
2019
May
2018

Producer Price Index (2000=100)

138.3

138.4 r

134.6

Year-on-Year Growth (%)

 2.7

3.6

1.5

Month-on-Month Growth (%)

-0.02

-0.4

0.8
r -revised
 
  • Producer Price Index posts increment in May 2019

The Producer Price Index (PPI, 2000=100) for manufacturing increased at an annual rate of 2.7 percent in May 2019. This annual growth of the PPI was higher than its annual growth rate of 1.5 percent during the same period of the previous year but lower than the annual growth rate of 3.6 percent in April 2019. The upturn can be attributed to the increases of 11 major industry groups with furniture and fixtures and non-metallic mineral products posting a double-digit increment of 47.9 percent and 11.0 percent, respectively. On the other hand, leather products, which dropped by 13.7 percent, led the nine industry groups that posted annual decreases. Refer to Tables 1 and A-1.

Month-on-month, PPI slightly decreased by 0.02 percent in May 2019. In April 2019, the PPI dropped at a monthly rate of 0.4 percent. Leather products, which declined by 13.0 percent, led the ten major industry groups that pulled-down the PPI in May 2019. Meanwhile, PPI for eight major industry groups posted increases and two major industry groups reflected flat growths. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

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

MAJOR INDUSTRY GROUP

May 2019
April 2019
(revised)

Gainers

 

 

Transport Equipment

3.7

4.5

Non-Metallic Mineral Products

11.0

10.7

Furniture & Fixtures

47.9

54.4

Rubber & Plastic Products

5.8

5.7

Tobacco Products

5.3

5.4

Beverages

3.2

3.2

Fabricated Metal Products

3.7

3.3

Petroleum Products

0.8

-1.1

Machinery Except Electrical

0.8

1.5

Paper & Paper Products

1.9

4.1

Printing

2.3

2.3

Losers

 

 

Food Manufacturing

-4.2

-4.2

Basic Metals

-8.1

-7.6

Chemical Products

-5.4

-5.2

Miscellaneous Manufactures

-7.7

-6.6

Leather Products

-13.7

1.6

Electrical Machinery

-0.6

0.2

Wood & Wood Products

-4.6

-6.5

Footwear & Wearing Apparel

-2.5

0.2

Textiles

-3.7

-4.2

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,
April 2019 and May 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

May 2019
April 2019
(revised)

Gainers

 

 

Electrical Machinery

0.6

-1.0

Machinery Except Electrical

0.6

-0.1

Petroleum Products

0.4

-0.5

Wood & Wood Products

1.8

-4.0

Rubber & Plastic Products

0.2

-0.1

Fabricated Metal Products

0.2

-1.0

Transport Equipment

a/

0.6

Miscellaneous Manufactures

0.2

-1.2

Printing

0.0

0.0

Beverages

0.0

0.6

Losers

 

 

Leather Products

-13.0

-1.5

Food Manufacturing

-0.2

-0.2

Basic Metals

-0.5

-1.8

Footwear & Wearing Apparel

-0.9

2.8

Furniture & Fixtures

-1.2

-0.2

Chemical Products

-0.1

-0.6

Non-Metallic Mineral Products

-0.1

-0.8

Paper & Paper Products

-0.1

-0.4

Textiles

-0.1

-0.4

Tobacco Products

b/

a/

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

 

 

 

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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