• Producer Price Index declines in July 2016

The Producer Price Index (PPI, 2000=100) for manufacturing decreased at a slower rate of 4.1 percent in July 2016 compared with a negative 6.7 percent during the same period last year. The slowdown can be attributed to the double-digit decrements posted by the following major sectors: furniture and fixtures (-23.1%), machinery except electrical (-16.4%) and petroleum products (-11.8%). On the other hand, miscellaneous manufactures (5.9%) continued to lead the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI likewise went down by 0.8 percent in July from a flat rate posted a month earlier. This was influenced by the decreases observed in ten major sectors including the two heavily-weighted sectors namely: petroleum products (-2.5%) and electrical machinery (-1.9%). Furthermore, five sectors posted flat growths and five sectors reflected 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 Industrial Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 industry groupings of the 2016 PPS. These are presented in the table below.

Note:  * - Major sectors categorized into sub-sectors

• Response Rate

The response rate for July 2016 is 81.4 percent, which corresponds to the retrieval of 613 establishments’ reports out of the 753 samples for the survey.  Refer to Tables 2 and 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.