r-revised

• Producer Price Index decelerates 
   

  Producer Price Index (PPI, 2000=100) for the manufacturing sector further decreased to -0.9 percent in December 2011 from -0.4 percent a month ago, according to the preliminary results of the monthly Producer Price Survey. Nine major sectors posted decreases. Double-digit decreases were posted by furniture and fixtures (-50.3%), transport equipment (-23.0) and miscellaneous manufactures (-11.8%). On the other hand, eleven major sectors reflected increases led by petroleum products (14.8%). Refer to Tables 1 and 1-B.

  On a monthly basis, PPI made a turnaround by posting an increase of 0.8 percent in December 2011 from -1.0 percent registered during the previous month due to the positive growths reflected by nine major sectors. However, four major sectors posted decreases led by furniture and fixtures (-3.8%). while flat growths were noted in seven major sectors. Refer to Tables 1 and 1-B.

• Response Rate 
   

  The response rate for December 2011 is 84.3 percent, which corresponds to the retrieval of 268 sample establishments’ reports. Refer to Table 2.

  Table B Response Rates for Total Manufacturing
  (In percent)

   

  December 2011	November 2011            (revised)
  84.3	94.7r

   

• 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.

  (Sgd.) CARMELITA N. ERICTA                                                                                                                Administrator

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  TABLE 1-A. PRODUCER PRICE INDEX, NOVEMBER 2011 - DECEMBER 2011
  (2000=100)

   

  Gainers	Year-on-Year Growth (percent)
  	December 2011	November 2011 (revised)
  Petroleum Products	14.8	18.8
  Machinery Except Electrical	12.2	13.1
  Electrical Machinery	2.8	3.9
  Basic Metals	4.6	5.4
  Food Manufacturing	1.6	2.2
  Paper and Paper Products	7.2	6.8
  Tobacco Products	4.7	4.7
  Wood and Wood Products	0.1	0.1
  Leather Products	0.1	-0.6
  Publishing and Printing	0.0	0.0
  Rubber and Plastic Products*	1.9	3.3
  Losers	Year-on-Year Growth (percent)
  	December 2011	November 2011 (revised)
  Furniture and Fixtures	-50.3	-46.3
  Transport Equipment	-23.0	-26.9
  Miscellaneous Manufactures	-11.8	-11.7
  Non-Metallic Mineral Products	-5.9	-3.4
  Footwear and Wearing Apparel	-0.6	-0.8
  Textiles	-1.7	-0.5
  Chemical Products	-2.1	-3.2
  Fabricated Metal Products	-2.4	-2.3
  Beverages	-3.7	-3.7

   

  TABLE 1-B. PRODUCER PRICE INDEX, NOVEMBER 2011 - DECEMBER 2011 
  (2000=100)

   

  Gainers	Month-on-Month Growth (percent)
  	December 2011	November 2011 (revised)
  Transport Equipment	6.0	-8.1
  Machinery Except Electrical	1.7	0.3
  Basic Metals	1.5	0.4
  Electrical Machinery	0.3	0.4
  Chemical Products	0.8	-1.8
  Petroleum Products	0.1	-1.1
  Paper and Paper Products	0.4	3.9
  Footwear and Wearing Apparel	0.2	-1.0
  Leather Products	0.6	0.0
  Food Manufacturing	0.0	-0.2
  Tobacco Products	0.0	0.0
  Publishing and Printing	0.0	0.0
  Wood and Wood Products	0.0	0.0
  Beverages	0.0	0.0
  Fabricated Metal Products	0.0	-0.2
  Textiles	0.0	-0.1
  Losers	Month-on-Month Growth (percent)
  	December 2011	November 2011 (revised)
  Miscellaneous Manufactures	-2.0	0.3
  Non-Metallic Mineral Products	-1.0	-0.3
  Furniture and Fixtures	-3.8	-4.9
  Rubber and Plastic Products*	-0.7	-0.9

   

  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

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  Source:   National Statistics Office
                   Manila, Philippines