·  Producer Price Index increases at a slower rate

The Producer Price Index (PPI, 2000=100) for the manufacturing industry posted an increment of 4.1 percent in January 2009, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Sources of increase were exhibited in sixteen major sectors with two-digit growth observed in the following: fabricated metal products (21.1%), textiles (14.0%), machinery except electrical (13.6%), footwear and wearing apparel (13.5%), electrical machinery (10.5%) andbeverages (10.1%). On the other hand, petroleum products recorded a decline of 26.5 percent. Refer to Tables 1 and 1-A.

PPI, on a month-on month basis, maintained its downtrend at 1.4 percent in January. Ten major sectors contributed to the decrease in price led by rubber and plastic products (10.1%). Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for January 2009 is 86.0 percent, which corresponds to the retrieval of 276 sample establishments reports. Refer to Table 3.

·  Technical Notes

The 2009 PPI Release utilizes the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, consisting of two sub-sectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously, with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemical and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Weights for the 2009 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.

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, DECEMBER 2008 - JANUARY 2009 
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, DECEMBER 2008 - JANAURY 2009
(2000=100)

Note:

a/ - new sector in the 2000-based series

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