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 |
- 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 |
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.