Producer Price Survey : August 2018

Reference Number: 

2018-151

Release Date: 

Friday, September 28, 2018

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
August 2018, July 2018 and August 2017

TOTAL MANUFACTURING

August
2018
July
2018
August
2017

Producer Price Index (2000=100)

132.6

132.8 r

132.7

Year-on-Year Growth

 -0.04

 0.2

-0.4

Month-on-Month Growth

-0.1

 -0.04

0.1
r -revised
 
  • Producer Price Index posts slight derease in August 2018

The Producer Price Index (PPI, 2000=100) for manufacturing slightly descended at a rate of 0.04 percent in August 2018 from a negative growth of 0.4 percent during the same period of previous year. The slowdown resulted from the decreases of ten major sectors with non - metallic mineral products posting the highest decline of 11.8 percent followed by leather products with a decline of 10.0 percent. On the other hand, tobacco products (51.8%) led the ten major sectors that posted increases. Refer to Tables 1 and A-1.

Month-on-month, the Producer Price Index likewise decreased by 0.1 percent from the previous month’s rate of negative 0.04 percent. Transport equipment and fabricated metal products, both with negative 1.4 percent each had the highest decline among the eight major sectors which decreased from the previous month’s level. Meanwhile, ten major sectors posted increases while two sectors reflected a flat growth. Refer to Tables 1 and A-2.

 
 
 
 
 
 
 
 
TABLE A-1   Producer Price Index, July 2018 and August 2018:
(2000=100)
 

INDUSTRY GROUP

Year-on-Year Growth (percent)

August 2018
July  2018
(revised)

Gainers

 

 

Petroleum Products

17.7

21.0

Tobacco Products

51.8

51.6

Electrical Machinery

6.5

6.9

Machinery Except Electrical

9.9

9.8

Beverages

15.5

15.3

Basic Metals

6.7

7.7

Miscellaneous Manufactures

9.1

9.4

Printing

4.2

4.3

Textiles

3.7

4.5

Paper & Paper Products

0.9

3.5

Losers

 

 

Non-Metallic Mineral Products

-11.8

-10.6

Food Manufacturing

-2.0

-2.7

Chemical Products

-2.6

-1.9

Fabricated Metal Products

-7.3

-11.7

Transport Equipment

-1.1

-0.5

Rubber and Plastic Products

-3.5

-3.9

Furniture & Fixtures

-8.3

-7.9

Leather Products

-10.0

-7.1

Footwear & Wearing Apparel

-1.2

-3.4

Wood & Wood Products

-0.9

-1.5

 
 
 
TABLE A-2   Producer Price Index, July 2018 and August 2018:
(2000=100)
 
 

INDUSTRY GROUP

Month-on-Month Growth (percent)

August 2018
July  2018
(revised)

Gainers

 

 

Food Manufacturing

0.3

-0.2

Footwear & Wearing Apparel

3.0

-2.2

Machinery Except Electrical

0.3

-b/

Basic Metals

0.3

-0.2

Wood & Wood Products

1.0

-1.2

Miscellaneous Manufactures

0.5

0.7

Electrical Machinery

a/

0.8

Furniture & Fixtures

0.3

-2.6

Rubber and plastic products

a/

0.7

Tobacco Products

0.1

-0.1

Beverages

0.0

0.4

Printing

0.0

0.3

Losers

 

 

Transport Equipment

-1.4

0.9

Petroleum Products

-0.5

0.3

Fabricated Metal Products

-1.4

-0.2

Chemical Products

-0.2

-0.6

Paper & Paper Products

-0.5

0.8

Textiles

-0.8

1.1

Leather Products

b/

-4.9

Non-Metallic Mineral Products

b/

2.9

 
 
 
Notes:
a/ - Less than 0.05 percent increase
b/ - Less than 0.05 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 the same month index of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month index by the previous month index less 1.
 
 
  • Response Rate

The response rate for August 2018 is 73.1 percent, which corresponds to the retrieval of 549 establishments’ reports out of the 751 samples for the survey. Refer to Tables 2 and B.

 

Table B Response Rates For Total Manufacturing
(In Percent)

August 2018

July 2018
(revised)
73.1
91.1r
r-revised

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.

 
 

 

 
 
 
 
 
 
 
LISA GRACE S. BERSALES, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
 
 
 
 
 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI 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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 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:
 
 
 
           Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. 

           
  • 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 2018 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

 

 

See more at the Producer Price Survey (PPS) main page.

 

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