·  Producer Price Index maintains positive growth

The Producer Price Index (PPI, 2000=100) for the manufacturing industry recorded a slower growth of 2.7 percent in February 2009, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. This was brought about by the increases reported by fourteen major sectors with two-digit growth exhibited by the following sectors: fabricated metal products (18.0%), textiles (14.2%), footwear and wearing apparel (13.1%), and beverages (12.6%). However, decreases in the PPI were also observed in five major sectors led by, petroleum products (24.0%). Refer to Tables 1 and 1-A.

PPI, on a month-on month basis, slightly decreased by 0.1 percent in February. This was due to the price decreases observed in seven major sectors namely: basic metals, food manufacturing, miscellaneous manufactures, furniture and fixtures, transport equipment, textile and non-metallic mineral products. Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for February 2009 is 86.0 percent, which corresponds to the retrieval of 276 sample establishments� reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The 2008 PPI Release utilizes 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 Productswas previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously, with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemicals 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 2009 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 2009 - FEBRUARY 2009 
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, JANUARY - FEBRUARY 2009 
(2000=100)

Note:

a/ - 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