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Release Date :
Reference Number :
2015-084

 

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

August 2015 and July 2015

TOTAL MANUFACTURING

August
2015
July
2015

Producer Price Index (2000=100)

139.0

139.1 r

          Year-on-Year Growth

-8.0

 -6.8 r

         Month-on-Month Growth

-0.1

-0.8

       r -revised
 
  •    Producer Price Index slides down in August 2015

Producer Price Index (PPI, 2000=100) for manufacturing declined by 8.0 percent in August 2015 compared with negative 1.1 percent in August 2014. The slowdown was brought about by the decreases of ten major sectors led by the heavily weighted sectors namely: electrical machinery (-19.6%), petroleum products (-25.4%) and basic metals (-13.5%).  Furniture and fixtures (-32.4%), and wood and wood products (-18.9%) similarly recorded two-digit decreases in producer price index. On the other hand, the remaining ten sectors posted single-digit increases led by beverages (8.9%). Refer to Tables 1 and A-1.

On a month-on-month performance, PPI slowly decreased by 0.1 percent from a negative 0.8 percent during the previous month. This can be attributed to the decreases posted by the heavily weighted sectors: electrical machinery (-1.1%), petroleum products (-1.6%), basic metals (-1.5%) and food manufacturing (-0.3%). Furthermore, the increases reflected by sixteen sectors were not able to improve the performance of the monthly PPI. Refer to Tables 1 and A-2.

 

 

TABLE A-1   Producer Price Index, July 2015 – August 2015:
(2000=100)

 

Gainers

Year-on-Year Growth (percent)

August 2015
July 2015
(revised)

Beverages

8.9

9.8

Machinery Except Electrical

4.2

2.7

Chemical Products

2.5

1.0

Miscellaneous Manufactures

6.2

3.7

Paper and Paper Products

2.9

2.1

Footwear and Wearing Apparel

2.4

0.0

Fabricated Metal Products

1.5

2.1

Tobacco Products

0.9

0.9

Textiles

1.3

1.7

Leather Products

1.2

0.7

 

Losers  

Year-on-Year Growth (percent)

August 2015
July 2015
(revised)

Electrical Machinery

-19.6

-17.4

Petroleum Products

-25.4

-25.9

Basic Metals

-13.5

-12.7

Non-Metallic Mineral Products

-5.7

-5.7

Wood and Wood Products

-18.9

-20.6

Transport Equipment

-1.0

-1.9

Rubber and Plastic Products

-2.2

-3.2

Food Manufacturing

-0.2

0.3

Printing

-1.6

-1.6

Furniture and fixtures

-32.4

-18.0

 

TABLE A-2   Producer Price Index, July 2015 – August 2015:
(2000=100)

 

Gainers

Month-on-Month Growth (percent)

August 2015
July  2015
(revised)

Machinery Except Electrical

1.8

0.7

Transport Equipment

0.4

0.8

Miscellaneous Manufactures

1.7

0.6

Footwear and Wearing Apparel

1.2

1.1

Wood & Wood Products

2.0

0.0

Non-Metallic Mineral Products

0.3

0.2

Furniture and Fixtures

1.5

0.9

Paper and Paper Products

0.5

1.2

Fabricated Metal Products

0.2

0.3

Leather Products

0.5

0.2

Textiles

0.1

0.6

Printing

0.1

0.1

Rubber and Plastic Products 

0.6

-2.7

Chemical Products

0.3

0.1

Beverages

0.0

0.0

Tobacco

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

August 2015
July 2015
(revised)

Electrical Machinery

-1.1

-2.2

Petroleum Products

-1.6

-4.6

Basic Metals

-1.5

-4.9

Food Manufacturing

-0.3

0.0

 

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.

 

Technical Notes
 
  • Introduction
The Philippine Statistics Authority 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 census 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 Industry 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 2015 is 80.9 percent, which corresponds to the retrieval of 589 establishments’ reports out of the 728 samples for the survey.  Refer to Table B.

Response rates for tobacco products and furniture and fixtures reached 100 percent and 95.8 percent, respectively. Refer to Table 2.

Table B Response Rates For Total Manufacturing
(In Percent)

August 2015

July 2015
(revised)

80.9

89.6r

Missing prices for products of sample establishments are estimated using the short-term geometric mean of the actual prices of responding samples within the same industry class. Revisions to the preliminary estimates are done upon receipt of actual reports from late responding establishments.

 

 

 

 

(Sgd.) LISA GRACE S. BERSALES, Ph.D.
National Statistician

 

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