• Producer Price Index declines in January 2016

The Producer Price Index (PPI, 2000=100) for manufacturing dropped by 6.0 percent in January 2016 compared with 3.7 percent a year ago. The slowdown was brought about by the two-digit decreases of five major sectors namely: wood and wood products (-14.8%), electrical machinery (-12.1%), machinery except electrical (-12.1%), basic metals (-12.0%) and furniture and fixtures (-11.3%).   On the other hand, eight of the twenty major sectors registered increases led by paper and paper products (5.1%). Refer to Tables 1 and A-1.

On a monthly basis, the PPI decelerated further by 1.5 percent after a decrement of 0.2 percent last month. Eight major sectors pulled down the performance of the PPI led by machinery except electrical (-13.3%).  Moreover, two major sectors remained flat while ten major sectors posted increases. Refer to Tables 1 and A-2.

• Introduction

• Method of Index Computation

• Industry Coverage

Starting with January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industry Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 industry groupings of the 2014 PPS. These are presented in the table below.

Note:  * - Major sectors categorized into sub-sectors

• Response Rate

The response rate for January 2016 is 74.5 percent, which corresponds to the retrieval of 551 establishments’ reports out of the 740 samples for the survey.  Refer to Table B.

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.