r-revised

• Producer Price Index reflects a slower growth rate 
   

  Producer Price Index (PPI, 2000=100) for the manufacturing sector went up by 1.6 percent in April 2012, according to the preliminary results of the monthly Producer Price Survey. Increases were noted in eight major sectors led by transport equipment (6.9%) followed by food manufacturing (6.7%). On the other hand, ten major sectors posted decreases led by furniture and fixtures (-32.2%). Refer to Tables 1 and 1-B.

  On a monthly basis, PPI manifested a negative rate of -0.5 percent in April 2012. This can be attributed to the decrease in prices of ten major sectors led by furniture and fixtures (-20.0%) followed by petroleum products (-5.2%). Refer to Tables 1 and 1-B.

  

  

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                                                                   TECHNICAL NOTES

• Introduction 
   

  The National Statistics Office generates various price indices, one of this is the Producer Price Index. (PPI). The PPI is generated through the results of the Producers Price Survey (PPS) conducted nationwide. The survey gathers monthly actual producer prices of selected products included in the market basket.

  The PPI is the 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 Index (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 2012 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2009 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:

  

  

  

  

• Industry Coverage 
   

  The industry classification of the 2012 PPI utilizes the amended 1994 Philippine Standard Industry classification. There are 20 major sectors covered by the 2012 PPS with three consisting of subsectors.

   

   

   

  1994 PSIC CODE	INDUSTRY DESCRIPTION
  15 except 155	Food Manufacturing
  155	Beverages
  16	Tobacco products
  17	Textiles
  18,174 and 192	Footwear and wearing apparel
  191	Leather products
  20	Wood and wood products
  21	Paper and paper products
  22	Publishing and printing
  23	Petroleum products
  24	Chemical products
  25	Rubber and plastic products*
  26	Non-metallic mineral products*
  27	Basic metals*
  28	Fabricated metal products
  29 and 30	Machinery except electrical
  31 and 32	Electrical machinery
  34 and 35	Transport equipment
  36	Furniture and fixtures
  33, 37 and 39	Miscellaneous manufactures

                                                 Note: * - Major sectors categorized into sub-sectors

Source:   National Statistics Office
                Manila, Philippines