Producer Price Survey : February 2019

Reference Number: 

2019-045

Release Date: 

Friday, March 29, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
February 2019, January 2019 and February 2018

TOTAL MANUFACTURING

February
2019
Janaury
2019
February
2018

Producer Price Index (2000=100)

139.3

139.3 r

134.4

Year-on-Year Growth (%)

 3.6

3.8

0.1

Month-on-Month Growth (%)

-0.04

5.3

0.1
r -revised
 
  • Producer Price Index increases in February 2019

The Producer Price Index (PPI, 2000=100) for manufacturing increased at an annual rate of 3.6 percent in February 2019. In January 2019, the annual rate was slightly higher at 3.8 percent while lower in February 2018 at 0.1 percent. The annual increase in the PPI in February 2019 was due to the increases of 13 major industry groups with furniture and fixtures posting the highest increment of 46.1 percent. On the other hand, wood and wood products with negative annual growth rate of 7.7 percent, led the seven major industry groups that posted decreases in this period. Refer to Tables 1 and A-1.

Month-on-month, PPI decreased by 0.04 percent in February 2019. PPI increased in the previous month at a monthly rate 5.3 percent and in February 2018, 0.1 percent. Eleven major industry groups pulled down the monthly PPI led by wood and wood products (-2.0 percent). Meanwhile, eight industry groups posted monthly increases while printing reflected a flat growth. Refer to Tables 1 and A-2.

 

 

 

 
TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
January 2019 and February 2019:
(2000=100)
 

INDUSTRY GROUP

February 2019
January 2019
(revised)

Gainers

 

 

Machinery Except Electrical

5.6

7.2

Non-Metallic Mineral Products

9.5

9.3

Transport Equipment

2.6

3.6

Furniture & Fixtures

46.1

50.1

Petroleum Products

2.8

-6.9

Rubber & Plastic Products

6.7

6.6

Tobacco Products

5.2

-1.4

Electrical Machinery

1.1

1.9

Beverages

1.6

1.5

Fabricated Metal Products

3.0

3.3

Textiles

4.4

5.3

Paper & Paper Products

1.5

2.1

Printing

3.2

3.2

Losers

 

 

Food Manufacturing

-2.7

-2.7

Chemical Products

-4.8

-5.3

Basic Metals

-4.5

-2.6

Wood & Wood Products

-7.7

-5.5

Miscellaneous Manufactures

-4.9

-4.5

Footwear & Wearing Apparel

-3.4

b/

Leather Products

-4.2

9.9

b/ - Less than 0.05 percent decrease
 
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate
 
 
 
 
TABLE A-2   Month-on-month Growth Rate (%) of Producer Price Index,
January 2019 and February 2019:
(2000=100)
 

INDUSTRY GROUP

Fenruary 2019
January 2019
(revised)

Gainers

 

 

Petroleum Products

1.9

0.9

Transport Equipment

0.5

3.5

Food Manufacturing

0.2

-0.4

Non-Metallic Mineral Products

0.8

1.8

Leather Products

2.2

14.6

Textiles

0.5

1.5

Rubber & Plastic Products

a/

4.2

Tobacco Products

7.0

-3.1

Printing

0.0

0.0

Losers

 

 

Machinery Except Electrical

-1.3

0.8

Basic Metals

-1.5

0.3

Fabricated Metal Products

-1.8

3.3

Electrical Machinery

-0.2

-1.4

Footwear & Wearing Apparel

-1.5

-1.8

Wood & Wood Products

-2.0

0.9

Paper & Paper Products

-0.4

-1.0

Chemical Products

-0.1

-5.3

Furniture & Fixtures

-0.5

71.8

Miscellaneous Manufactures

-0.1

2.6

Beverages

b/

1.0

a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
 
Notes:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

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) which is 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 2019 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2015 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:
 
 
  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 
 
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 2019 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 industry groups categorized into sub-industry classes

 

 

See more at the Producer Price Survey (PPS) main page.

 

Tags: 

Attachment: