r-revised

·  Producer Price Index maintains decreasing trend

The Producer Price Index (PPI, 2000=100) for the manufacturing industry continued to decrease at a slower rate of 6.2 percent, showing an improvement from its 7.2 percent decrease in November 2010, according to the preliminary results of the monthly Producer Price Survey. This was brought about by significant decreases posted by three major sectors, namely: machinery except electrical (-19.9%), electrical machinery (-18.0%) and furniture and fixtures (-11.4%). However, increases in PPI were observed in twelve major sectors led by leather products (14.9%) and petroleum products (11.7%). Refer to Tables 1 and 1-B.

On a month-on month basis, PPI posted a 1.0 percent increase in December 2010, due to price increases in 18 major sectors led by petroleum products (3.6%). Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for December 2010 is 84.7 percent, which corresponds to the retrieval of 272 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The National Statistics Office generates various price indices, one of this is the Producer Price Index. (PPI). The PPI is generated through the results of the Producers Price Survey (PPS) conducted nationwide. The survey gathers monthly actual producer prices of selected products included in the market basket.

PPI utilizes the Paasche-type method of index computation with weights computed from the production concentration ratio of the Census of Philippine Business and Industry (CPBI)/ Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI/CPBI are available and applied at the beginning of each survey year.

Hence, the weights of the major sectors and sub-sectors for the 2009 PPI were computed from the results of the 2006 CPBI for Manufacturing Establishments of total employment of 20 and over, which is the latest census results.

Moreover, for industry classification, the 2010 PPI utilizes the amended 1994 Philippine Standard Industry Classification. There are 20 major sectors covered by the 2010 PPS with three consisting of subsectors.

Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, NOVEMBER 2010 - DECEMBER 2010
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, NOVEMBER 2010 - DECEMBER 2010
(2000=100)

Note:

* - new sector in the 2000-based series

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