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Release Date :
Reference Number :
2015-073

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:

July 2015 and June 2015

TOTAL MANUFACTURING

July
2015
June
2015
Producer Price Index (2000=100)

139.7

140.4 r

          Year-on-Year Growth

-6.4

 -6.3 r

         Month-on-Month Growth

-0.5

0.3

       r -revised
 
  •    Producer Price Index decelerates further in July 2015

Producer Price Index (PPI, 2000=100) for manufacturing went down by 6.4 percent in July 2015 compared with negative 1.5 percent in July 2014. The heavily weighted petroleum products and electrical machinery sectors, which decreased by 25.5 percent and 16.9 percent, respectively, led the sectors that pulled-down the year-on-year performance of the July 2015 PPI. Other sectors with double-digit decreases were the following: wood and wood products (-19.5%) and    furniture and fixtures (-18.0%).  On the other hand, the remaining ten sectors reflected single-digit increases led by beverages (9.8%). Refer to Tables 1 and A-1.

On a month-on-month performance, PPI likewise decreased by 0.5 percent from a positive growth of 0.3 percent during the previous month. This can be attributed to the rollback in the prices of gasoline, diesel, kerosene and LPG which resulted to the decline of the heavily weighted petroleum products sector by 4.5 percent. Furthermore, two sectors posted flat growths while twelve sectors reflected increases. Refer to Tables 1 and A-2.

 

TABLE A-1   Producer Price Index, June 2015 – July 2015:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

July 2015
June 2015
(revised)
Beverages

9.8

8.9

Machinery Except Electrical

2.7

0.7

Miscellaneous Manufactures

6.6

1.4

Chemical Products

1.4

1.9

Food Manufacturing

0.3

0.0

Fabricated Metal Products

2.1

-2.6

Paper and Paper Products

2.4

2.4

Tobacco Products

0.9

0.9

Textiles

1.2

1.1

Leather Products

0.7

0.5

 

Losers

Year-on-Year Growth (percent)

July 2015
June 2015
(revised)
Petroleum Products

-25.5

-19.7

Electrical Machinery

-16.9

-18.0

Basic Metals

-8.5

-6.1

Transport Equipment

-2.0

-2.5

Non-Metallic Mineral Products

-5.9

-6.5

Wood and Wood Products

-19.5

-20.9

Rubber and Plastic Products

-3.0

-0.5

Printing

-1.6

-1.7

Footwear and Wearing Apparel

-0.1

-1.3

Furniture and fixtures

-18.0

-14.7

 

TABLE A-2   Producer Price Index, June 2015 – July 2015:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

July 2015
June  2015
(revised)
Transport Equipment

0.8

-1.8

Miscellaneous Manufactures

3.4

1.0

Machinery Except Electrical

0.7

-0.2

Paper and Paper Products

1.3

-0.2

Footwear and Wearing Apparel

1.1

-1.9

Wood & Wood Products

1.4

1.0

Food Manufacturing

a/

0.3

Fabricated Metal Products

0.3

0.3

Furniture and Fixtures

0.9

1.9

Textiles

0.6

0.3

Non-Metallic Mineral Products

0.1

0.2

Leather Products

0.2

0.3

Printing

0.1

0.4

Beverages

0.0

0.0

Tobacco

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

July 2015
June 2015
(revised)
Petroleum Products

-4.5

-0.4

Electrical Machinery

-1.5

1.2

Basic Metals

-2.4

-0.7

Rubber and Plastic Products

-2.7

0.3

 

Notes:
a/ - less than 0.1 percent increase
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.

 

Technical Notes
 
  • Introduction
The Philippine Statistics Authority 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 2014 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 census 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 (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.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10Food manufacturing *
C11Beverages
C12Tobacco products
C13Textiles*
C14,C152Footwear and wearing apparel
C151Leather products
C16Wood and wood products*
C17Paper and paper products
C18Printing and reproduction of recorded media
C19Petroleum products*
C20,C21Chemical products*
C22Rubber and plastic products*
C23Non-metallic mineral products*
C24Basic Metals*
C25Fabricated metal products
C262,C275,C28,C263,C268Machinery except electrical*
C261,C264,C27,C29301Electrical machinery*
C29 except C29301,C30Transport equipment
C31Furniture and fixtures
C265,C266,C267,C32Miscellaneous manufactures

Note:  * - Major sectors categorized into sub-sectors

 

  • Response Rate

The response rate for July 2015 is 80.2 percent, which corresponds to the retrieval of 584 establishments’ reports out of the 728 samples for the survey.  Refer to Table B.

Response rates for beverages, and rubber and plastic products reached 100 percent and 91.3 percent, respectively. Refer to Table 2.

Table B Response Rates For Total Manufacturing
(In Percent)

July 2015

June 2015
(revised)

80.2

90.4r

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.

 

 

FOR THE NATIONAL STATISTICIAN:
 
 
(Sgd.) ROMEO S. RECIDE
(Interim Deputy National Statistician)
Officer-in-Charge

 

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