r-revised

·  Producer Price Index maintains downtrend

The Producer Price Index (PPI, 2000=100) for the manufacturing industry slid by 4.6 percent in April 2010, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Three out of nine major sectors posted two-digit price reductions namely: furniture and fixtures (-40.3%), machinery except electrical (-22.3%) and electrical machinery (-13.3%). On the other hand, increases in the PPI were observed in eleven major sectors led by petroleum products and footwear and wearing apparel with two-digit growth of 29.8 percent and 10.2 percent respectively. Refer to Tables 1 and 1-B.

PPI, on a month-on month basis, maintained its downtrend at 2.7 percent in April. Seven major sectors contributed to the decrease in price led by machinery except electrical (-14.1). Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for April 2010 is 85.0 percent, which corresponds to the retrieval of 273 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The PPI utilizes the Paasche-type method of index computation with weights computed from the production concentration ratio of the Census of Philippine Business and Industry (CPBI)/Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI/CPBI are available and applied at the beginning of each survey year.

Hence, the weights of the major sectors and sub-sectors for the 2009 PPI were computed from the results of the 2006 CPBI for Manufacturing Establishments of total employment of 20 and over, which is the latest census results. The 2010 PPI still uses the same weights.

Moreover for industry classification, the 2010 PPI utilizes the amended 1994 Philippine Standard Industry Classification. Rubber and Plastic Products is a new major sector beginning the 2008 PPI, consisting of two sub-sectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously, with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemical and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, MARCH 2010 - APRIL 2010
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, MARCH 2010 - APRIL 2010
(2000=100)

Note:

* - new sector in the 2000-based series

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

Source:   National Statistics Office
                 Manila, Philippines