Table A Year-on-Year and Month-on-Month Growth Rates of Producer
|Total Manufacturing||January 2012||February 2012|
|Producer Price Index (2000=100)||171.5r||171.9|
- 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.
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:
- 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|
|18,174 and 192||Footwear and wearing apparel|
|20||Wood and wood products|
|21||Paper and paper products|
|22||Publishing and printing|
|25||Rubber and plastic products*|
|26||Non-metallic mineral products*|
|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
The response rate for February 2012 is 81.1 percent, which corresponds to the retrieval of 275 sample establishmentsÃƒÂ¯Ã‚Â¿Ã‚Â½ reports. Refer to Table 2.
Table B Response Rates for Total Manufacturing
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, JANUARY 2012 - FEBRUARY 2012
TABLE 1-B. PRODUCER PRICE INDEX, JANUARY 2012 - FEBRUARY 2012
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