·  Producer Price Index continues to accelerate

The Producer Price Index (PPI, 2000=100) for the manufacturing industry posted an increment of 5.5 percent in July 2008, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Price increases were noted in seventeen (17) major sectors with petroleum products posting the highest increase of 42.5 percent. This was followed by three (3) other major sectors that exhibited two-digit percent growth, namely: basic metals, textiles and food manufacturing. On the other hand, year-on-year decreases in producer price were reported by three sectors led by furniture and fixtures. Refer to Tables 1 and 1-A.

On a month-on-month basis, PPI also reflected an increase of 1.7 percent in July 2008. This was brought about by the price increases exhibited in fifteen (15) major sectors with single-digit percent increase led by petroleum products (4.7%). Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for July 2008 is 90.9 percent, which corresponds to the retrieval of 281 sample establishments reports. Refer to Table 3.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The February 2008 PPI release utilized 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.

With previously seven (7) sub-sectors, the major sector of Chemical Products has now six (6) sub-sectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

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

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, JUNE - JULY 2008
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, JUNE - JULY 2008
(2000=100)

Note:

a/ - new sector in the 2000-based series

2/ - less than 0.1 percent decrease

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