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Release Date :
Reference Number :
2014-066

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:

August 2014 and July 2014

TOTAL MANUFACTURING

August
2014
July
2014

Producer Price Index (2000=100)

149.5

149.0 r

          Year-on-Year Growth

-2.2

-1.7 r

         Month-on-Month Growth

0.3

-0.3

       r -revised
 
  •    Producer Price Index posts negative annual rate since April 2014

Producer Price Index (PPI, 2000=100) for manufacturing slowly decreased by 2.2 percent in August 2014 compared with negative 6.4 percent during the same period last year. Furniture and fixtures (-12.5%) and machinery except electrical (-12.3%) led the eleven sectors that recorded decrements. Moreover, the decreases posted by the heavily weighted petroleum products (-2.0%) and electrical machinery (-1.3%) also contributed to the negative performance of the PPI.) On the other hand, increments were posted by eight sectors led by tobacco products (11.4%). Refer to Tables 1 and A-1. On a monthly basis, PPI accelerated to 0.3 percent from a negative 0.3 percent decrement in July 2014. Five sectors led by furniture and fixtures (7.1%) reflected increases. Meanwhile, four sectors reflected flat growths and eleven posted decrements. Refer to Tables 1 and A-2.

 

 

 

 

TABLE A-1   Producer Price Index, July 2014 – August 2014: (2000=100)

Gainers

Year-on-Year Growth (percent)

August 2014
July  2014
(revised)

Food  Manufacturing   

4.6

4.4

Tobacco Products

11.4

11.4

Beverages

0.8

0.8

Rubber and Plastic Products

0.9

1.4

Wood and Wood Products  

1.9

2.4

Non-Metallic Mineral Products

0.4

1.6

Leather Products

2.5

2.7

Textiles

0.8

1.4

Printing

0.0

0.0

 

Losers  

Year-on-Year Growth (percent)

August 2014
July 2014
(revised)

Machinery  Except  Electrical  

-12.3

-10.9

Basic Metals 

-6.6

-3.9

Electrical Machinery

-1.3

0.3

Petroleum Products

-2.0

3.4

Fabricated Metal Products

-5.9

-7.0

Chemical Products

-1.4

-0.4

Miscellaneous Manufactures  

-4.9

-4.3

Furniture and fixtures

-12.5

-18.2

Transport Equipment

-0.2

-1.0

Footwear and Wearing Apparel

-0.9

0.6

Paper and Paper Products

-0.3

0.2

 

 

TABLE A-2   Producer Price Index, July 2014 – August 2014: (2000=100)

Gainers

Month-on-Month Growth (percent)

August 2014
July  2014
(revised)

Electrical Machinery  

0.8

-1.8

Furniture and  Fixtures 

7.1

3.4

Miscellaneous Manufactures

1.8

-2.0

Machinery Except Electrical

0.4

-1.2

Food Manufacturing

0.1

-0.2

Beverages

0.0

0.0

Leather Products

0.0

0.0

Printing

0.0

0.0

Tobacco

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

August 2014
July 2014
(revised)

Petroleum Products

-2.4

2.9

Chemical Products

-1.4

0.2

Transport Equipment

-0.5

0.3

Basic Metals

-0.4

0.2

Footwear and Wearing Apparel

-1.3

0.0

Non-Metallic Mineral Products

-0.6

-0.6

Rubber and Plastic Products 

-0.4

-0.1

Fabricated Metal Products

-0.2

-4.3

Paper and Paper Products

-0.3

1.3

Textiles

-0.4

0.4

Wood & Wood Products

-0.1

-0.3

 
Notes:
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.

 

 

Technical Notes

  •    Introduction       

The National Statistics Office generates various price indices, one of these is the Producer Price Index (PPI). The PPI, a designated statistics, is generated through the results of the Producer Price Survey (PPS) 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 2014 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2010 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      

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 2014 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 sectors categorized  into sub-sectors

 

  •    Response Rate               

The response rate for August 2014 is 90.5 percent, which corresponds to the retrieval of 324 establishments’ reports out of the 358 samples for the survey.  Refer to Table B.

 

Table B Response Rates For Total Manufacturing
(In Percent)

August 2014

July 2014
(revised)

90.5

93.9r

 

Missing prices for products of sample establishments are estimated using the short-term relative change of all available prices within the same industry class. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

 

 

(Sgd.) ROMEO S. RECIDE
Interim Deputy National Statistician
Economic Sector Statistics Services
 

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