Producer Price Survey : February 2018

Release Date :
Reference Number :
2018-053

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
February 2018, January 2018 and February 2017

TOTAL MANUFACTURING
February
2018
January
2018
February
2017

Producer Price Index (2000=100)

132.5

132.3 r

134.2

          Year-on-Year Growth

 -1.3

 -1.3

 -1.2

         Month-on-Month Growth

  0.1

  0.4

 0.1
r -revised
 
  • Producer Price Index slightly decreases in February 2018

The Producer Price Index (PPI, 2000=100) for total manufacturing dropped at a slower rate of 1.3 percent in February 2018 from a negative growth of 1.2 percent during the same period of previous year. This can be attributed to the substantial decline of three major sectors namely; leather products, fabricated metal products and rubber and plastic products, which decreased by 16.0 percent, 15.5 percent and 13.7 percent, respectively. Refer to Tables 1 and A-1.

By month, PPI posted a positive growth with 0.1 percent from previous month’s rate of 0.4 percent with furniture and fixtures (2.8%) dominating the increase along with other 14 major sectors, while five sectors posted decreases. Refer to Tables 1 and A-2.

 

 
 
 
 
 
 
 
TABLE A-1   Producer Price Index, January 2018 and February 2018:
(2000=100)
 
 

INDUSTRY GROUP

Year-on-Year Growth (percent)
February 2018
January  2018
(revised)

Gainers

 

 

Tobacco Products

53.4

52.1

Petroleum Products

5.1

15.3

Electrical Machinery

2.2

2.5

Basic Metals

3.8

3.2

Machinery Except Electrical

2.5

2.7

Non- Metallic Mineral Products

3.5

2.9

Beverages

2.4

2.1

Miscellaneous Manufactures

5.4

3.7

Paper & Paper Products

1.8

0.5

Furniture & Fixtures

1.0

0.5

Losers

 

 

Food Manufacturing

-3.2

-3.6

Rubber and plastic products

-13.7

-13.5

Fabricated Metal Products

-15.5

-19.6

Chemical Products (excludes plastic)

-3.7

-2.7

Leather Products

-16.0

-12.1

Transport Equipment

-0.7

-2.7

Footwear & Wearing Apparel

-3.7

-4.7

Printing

-2.0

-1.4

Wood & Wood Products

-0.7

-0.7

Textiles

-0.1

0.1
 
 
 
 
TABLE A-2   Producer Price Index, January 2018 and February 2018:
(2000=100)
 
 

INDUSTRY GROUP

Month-on-Month Growth (percent)
February 2018
January  2018
(revised)

Gainers

 

  

Basic Metals

1.7

 4.4

Transport Equipment

0.7

 -0.1

Electrical Machinery

0.5

 1.2

Non- Metallic Mineral Products

1.0

 2.9

Machinery Except Electrical

0.6

 4.1

Furniture & Fixtures

2.8

 4.9

Footwear & Wearing Apparel

1.0

 -0.1

Miscellaneous Manufactures

0.8

 4.7

Rubber and plastic products

0.3

 -11.7

Paper & Paper Products

0.4

 1.8

Fabricated Metal Products

0.2

 1.3

Wood & Wood Products

0.2

 0.5

Textiles

a/

 -0.6

Printing

a/

 -2.6

Tobacco Products

0.3

 11.8

Losers

 

  

Petroleum Products

-7.9

 17.7

Chemical Products (excludes plastic)

-1.1

 -1.3

Food Manufacturing

-0.2

 -1.2

Leather Products

-3.6

 5.5

Beverages

b/

 2.6
 
 
 
 
 
 
Notes:
a/ - Less than 0.1 percent increase
b/ - Less than 0.1 percent decrease
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 the same month index of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month index by the previous month index less 1.
 
 
 
  • Response Rate

The response rate for February 2018 is 76.7 percent, which corresponds to the retrieval of 580 establishments’ reports out of the 756 samples for the survey. Refer to Tables 2 and B..

Table B Response Rates For Total Manufacturing
(In Percent)

January 2018
December 2017
(revised)
76.7
86.6r
r-revised

Missing  prices for products of sample establishments are estimated using the short-term geometric mean of the actual prices of responding samples within the same industry class. Revisions to the preliminary estimates are done upon receipt of actual reports from late responding establishments.

 
 

 

 
 
 
 
 
LISA GRACE S. BERSALES, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
 
 
 
 
 
 
 
 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI is generated through the results of the Producer Price Survey (PPS) conducted nationwide. The survey gathers monthly producer prices of selected products of establishments included in the market basket.
 
The PPI is used as a 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 (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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 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:
 
 
 
           Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. 

           
  • Industry Coverage

Starting with January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 industry groupings of the 2018 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Food manufacturing *

C11

Beverages

C12

Tobacco products

C13

Textiles*

C14,C152

Footwear and wearing apparel

C151

Leather products

C16

Wood and wood products*

C17

Paper and paper products

C18

Printing and reproduction of recorded media

C19

Petroleum products*

C20,C21

Chemical products*

C22

Rubber and plastic products*

C23

Non-metallic mineral products*

C24

Basic Metals*

C25

Fabricated metal products

C262,C275,C28,C263,C268

Machinery except electrical*

C261,C264,C27,C29301

Electrical machinery*

C29 except C29301,C30

Transport equipment

C31

Furniture and fixtures

C265,C266,C267,C32

Miscellaneous manufactures

Note:  * - Major sectors categorized into sub-sectors

 
Attachment Size
Excel spreadsheet TABLE 1 Producer Price Index 54.14 KB
Excel spreadsheet Year-on-Year and Month-on-Month Growth Rates for Manufacturing Sector January 2017 – February 201 13 KB
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