Producer Price Survey : February 2012

Reference Number: 

2012-024

Release Date: 

Wednesday, April 4, 2012

 

 

Table A Year-on-Year and Month-on-Month Growth Rates of Producer
Price Index: February 2012 and January 2012

Total Manufacturing       January 2012              February 2012       
      Producer Price Index              (2000=100) 171.5r 171.9
            Year-on-Year Growth 2.6r 2.9
            Month-on-Month Growth 3.5 0.2

                                   r-revised

 

  • Producer Price Index keeps positive annual growth rate since August 2011

     

Producer Price Index (PPI, 2000=100) for the manufacturing sector went up to 2.9 percent in February 2012, according to the preliminary results of the monthly Producer Price Survey. Nine major sectors posted increments with double-digit increases posted by machinery except electrical (14.9%) and petroleum products (14.5%). However, ten major sectors posted decreases led by furniture and fixtures (-37.8%). Refer to Tables 1 and 1-B.

On a monthly basis, PPI slightly increased by 0.2 percent in February 2012. Increases were posted by nine major sectors led by petroleum products (3.7%). On the other hand, three sectors reflected decrements while eight sectors posted flat growths. Refer to Tables 1 and 1-B.

Figure 1

Figure 2


 

                                                                 TECHNICAL NOTES

  • Introduction

     

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.

The PPI is the 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 Index (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 2012 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2009 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:

Figure 1

Figure 2

Figure 3

Figure 4

  • Industry Coverage

     

The industry classification of the 2012 PPI utilizes the amended 1994 Philippine Standard Industry classification. There are 20 major sectors covered by the 2012 PPS with three consisting of subsectors.

 

 
1994 PSIC CODE INDUSTRY DESCRIPTION
15 except 155 Food Manufacturing
155 Beverages
16 Tobacco products
17 Textiles
18,174 and 192 Footwear and wearing apparel
191 Leather products
20 Wood and wood products
21 Paper and paper products
22 Publishing and printing
23 Petroleum products
24 Chemical products
25 Rubber and plastic products*
26 Non-metallic mineral products*
27 Basic metals*
28 Fabricated metal products
29 and 30 Machinery except electrical
31 and 32 Electrical machinery
34 and 35 Transport equipment
36 Furniture and fixtures
33, 37 and 39 Miscellaneous manufactures

                                               Note: * - Major sectors categorized into sub-sectors

  • Response Rate

     

The response rate for February 2012 is 81.1 percent, which corresponds to the retrieval of 275 sample establishments� reports. Refer to Table 2.

Table B Response Rates for Total Manufacturing
(In percent)

          February 2012                      January 2012           
(revised)
81.1 89.4r

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


TABLE 1-A. PRODUCER PRICE INDEX, JANUARY 2012 - FEBRUARY 2012
(2000=100)

                               Gainers                                    Year-on-Year Growth (percent)         
February 2012 January 2012
(revised)
 

Petroleum Products

14.5

11.2

Machinery Except Electrical

14.9

13.2

Food Manufacturing

8.4

8.4

Electrical Machinery

1.6

0.1

Rubber and Plastic Products

4.8

5.2

Transport Equipment

1.9

3.5

Beverages

1.6

1.6

Chemical Products

0.6

1.1

Footwear and Wearing Apparel

0.5

-0.4

Publishing and Printing

0.0

0.0

 
Losers           Year-on-Year Growth (percent)          
February 2012 January 2011
(revised)
 

Furniture and Fixtures

-37.8

-33.1

Basic Metals

-3.5

-1.1

Non-Metallic Mineral Products

-5.5

-5.3

Miscellaneous Manufactures

-6.7

-7.4

Fabricated Metal Products

-5.0

-6.2

Wood and Wood Products

-9.9

-9.9

Leather Products

-3.9

-3.9

Paper and Paper Products

-1.1

-1.1

Tobacco Products

-0.8

-0.8

Textiles

-1.8

-0.5

TABLE 1-B. PRODUCER PRICE INDEX, JANUARY 2012 - FEBRUARY 2012
(2000=100)

                             Gainers                                        Month-on-Month Growth (percent)         
February 2012 January 2012
(revised)
 

Petroleum Products

3.7

2.3

Machinery Except Electrical

0.7

6.3

Electrical Machinery

0.3

0.1

Food Manufacturing

0.4

11.2

Basic Metals

0.7

-0.2

Footwear and Wearing Apparel

0.9

-1.7

Non-Metallic Mineral Products

0.7

-1.5

Paper and Paper Products

0.9

-3.7

Fabricated Metal Products

0.1

-2.4

Publishing and Printing

0.0

0.0

Textiles

0.0

2.0

Rubber and Plastic Products

9.0

7.5

Beverages

0.0

0.6

Wood and Wood Products

0.0

-10.0

Leather Products

0.0

-4.7

Tobacco Products

0.0

-1.0

Miscellaneous Manufactures

0.0

4.8

 
Losers       Month-on-Month Growth (percent)      
February 2012 January 2012
(revised)
 

Furniture and Fixtures

-6.2

10.1

Transport Equipment

-0.6

1.2

Chemical Products

-0.1

2.0

Note:

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

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