·  Producer Price Index sustains growth

The Producer Price Index (PPI, 2000=100) for the manufacturing industry registered an increase of 5.8 percent in August 2008, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Monthly price increases were observed in seventeen (17) major sectors, with two-digit growth observed in the following: petroleum products (36.9%), basic metals (20.6%), textiles (12.4%), food manufacturing (11.3%) and rubber and plastic products (10.3%). On the other hand, three sectors registered percentage decline led by furniture and fixtures (15.4%). Refer to Tables 1 and 1-A.

On a month-on-month basis, PPI declined by 0.2 percent in August. This was brought about by the price decreases exhibited by nine (9) major sectors with single-digit percent decrease led by petroleum products (- 6.6%). Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for August 2008 is 92.2 percent, which corresponds to the retrieval of 285 sample establishments reports. Refer to Table 3.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The 2008 PPI release, utilizes the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, 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.

With previously seven (7) sub-sectors, the major sector of Chemical Products has now six (6) sub-sectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The corresponding weights of the above sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Weights for the 2008 PPI are based from the results of the 2005 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, JULY - AUGUST 2008
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, JULY - AUGUST 2008
(2000=100)

Note:

a/ - new sector in the 2000-based series

2/ - 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