·  Producer Price Index increases at a slower rate

The Producer Price Index (PPI, 2000 = 100) for the manufacturing industry registered a slight increase of 0.1 percent in January 2008 compared to its year-ago figure, according to the preliminary results of the monthly Producer price Survey. Fifteen (15) of 20 major sectors contributed to the increase led by basic metals (23.1%) and petroleum products (19.0%). The remaining five major sectors posted price declines with two-digit decreases reported by miscellaneous manufactures (-23.6%) and electrical machinery (-10.5%) . Refer to Tables 2 and 1-A.

On a month-on-month basis, PPI still recorded a drop of 0.3 percent in January 2008. Seven major sectors registered significant declines namely: miscellaneous manufactures, fabricated metal products, textiles, petroleum products, leather products, transport equipment and electrical machinery . Refer to Tables 2 and 1-B.

·  Response Rate

The response rate for January 2008 is 83.9 percent, which corresponds to the retrieval of 266 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

Beginning the 2007 monthly issues, the 2000 based series of the PPI are released simultaneously with the 1994 based series. The 2000 based series for 2001 to 2006 were earlier made available in a separate Special Release.

The 1994 based PPI will be discontinued after the December 2007 series. Only the 2000 based PPI beginning the January 2008 series will be continued.

Weights for the 2008 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, DECEMBER - JANUARY 2008
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, DECEMBER - JANUARY 2008
(2000=100)

Sectors are ranked according to their contribution to the overall 2000-based January 2008 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