·  Producer Price Index posts negative growth rate

The Producer Price Index (PPI, 2000 = 100) for the manufacturing industry registered a decline of 0.8 percent in February 2008 compared to its year-ago figure, according to the preliminary results of the monthly Producer price Survey. Miscellaneous manufactures posted the biggest drop of 23.9 percent. Six (6) major sectors reported price reductions, posting single-digit decreases, as follows: furnitures and fixtures, machinery except electrical, electrical machinery, fabricated metal products, textiles, and paper and paper products . On the other hand, thirteen major sectors reported price increases, with two-digit growth observed in petroleum products,(22.0%) basic metals(16.8%) and publishing and printing(10.4%). Refer to Tables 2 and 1-A.

On a month-on-month basis, PPI recovered with a 0.8 percent growth in February 2008 from a 0.3 percent drop in the previous month. This was brought about by the price increases exhibited by twelve major sectors.Refer to Tables 2 and 1-B.

·  Response Rate

The response rate for February 2008 is 82.5 percent, which corresponds to the retrieval of 254 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The 1994 based PPI will be discontinued with the December 2007 data as the last of the series. Only the 2000 based PPI will be continued in 2008.

Starting February 2008 PPI, a revised industry disaggregation is adopted to conform with the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, consisting of two sub-sectors, namely: Rubber Products and Plastic Products . Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

With previously seven (7) sub-sectors, the major sector of Chemical Products has now six (6) sub-sectors, namely: Basic Chemical and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The corresponding weights of the above sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Weights for the 2008 PPI are based from the results of the 2005 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, JANUARY - FEBRUARY 2008
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, JANUARY - FEBRUARY 2008
(2000=100)

Note:

-* new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based February 2008 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