r-revised

•    Producer Price Index continue to decrease

Producer Price Index (PPI, 2000=100) for the manufacturing industry further declined by 7.6 percent in January 2013, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey.  The prevailing downtrend in the dollar to peso exchange rate heavily affected the sectors with most of its products valued in dollars, pulling down the Producer Price Index. These sectors were the following: machinery except electrical (-12.7%); electrical machinery (-11.9%); and basic metals (-10.2%). On the other hand, increases in the PPI were observed in five  major sectors led by printing (16.7%) as the country prepares for the 2013 elections. Refer to Tables 1 and A-1.

On a month-on-month basis, PPI decreased to 1.6 percent in January 2013 from negative 0.4 percent in December 2012. Machinery except electrical with a decrease of five percent led the thirteen sectors that posted single-digit declines. On the other hand, five sectors reflected increases in PPI with a significant increase posted by printing (10.0%) while two major sectors posted flat growths.  Refer to Tables 1 and A-2

TABLE A-1   Producer Price Index, December 2012 – January 2013

                 (2000 =100)

TABLE A-2   Producer Price Index, January 2013 – December 2012

                      (2000 = 100)

          Note:                          

Technical Notes

•    Introduction

The National Statistics Office generates various price indices, one of these is the Producer Price Index (PPI). The PPI, a designated statistics, 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 2013 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2010 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

Starting with January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industry Classification to classify sectors and industries. There are 20 major sectors covered by the 2013 PPS with three consisting of subsectors.

•    Response Rate

        The response rate for January 2013 is 74.0 percent, which corresponds to the retrieval of 271 sample establishments’ reports.  Refer to Table 2.

Non-responding sample establishments are estimated using historical imputation with trend adjustment. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

(Sgd) CARMELITA N. ERICTA
              Administrator