Producer Price Survey : July 2018

Reference Number: 

2018-139

Release Date: 

Thursday, August 30, 2018

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
July 2018, June 2018 and July 2017

TOTAL MANUFACTURING

July
2018
June
2018
July
2017

Producer Price Index (2000=100)

133.0

133.7 r

132.5

Year-on-Year Growth

 0.4

 0.9

-0.8

Month-on-Month Growth

-0.5

 -0.5

b/
r -revised
 
  • Producer Price Index slightly increases in July 2018

The Producer Price Index (PPI, 2000=100) for manufacturing slightly increased at a rate of 0.4 percent in July 2018 from negative growth of 0.8 percent during the same period of previous year. The upturn can be attributed to the increases of 11 out of 20 major sectors led by tobacco products with 51.9 percent. On the other hand, fabricated metal products (-23.7 percent) led the nine sectors that posted decreases. Refer to Tables 1 and A-1.

Month by month, PPI slightly descend by 0.5 percent from the previous month’s rate of negative 0.5 percent with nine major sectors recording negative growths. The rest of the eleven major sectors posted a one-digit positive growth. Refer to Tables 1 and A-2.

 
 
 
 
 
 
 
 
TABLE A-1   Producer Price Index, June 2018 and July 2018:
(2000=100)
 

INDUSTRY GROUP

Year-on-Year Growth (percent)

July 2018
June  2018
(revised)

Gainers

 

 

Petroleum Products

21.4

18.3

Tobacco Products

51.9

51.8

Electrical Machinery

7.6

6.0

Beverages

15.3

15.5

Machinery Except Electrical

8.9

9.0

Basic Metals

8.6

6.2

Non - Metallic Mineral Products

8.6

5.2

Miscellaneous Manufactures

9.4

9.3

Paper & Paper Products

3.7

1.3

Textiles

4.2

4.4

Printing

4.3

4.0

Losers

 

 

Food Manufacturing

-2.6

-2.3

Fabricated Metal Products

-23.7

-10.9

Chemical Products

-2.0

-1.7

Rubber and plastic products

-4.1

-4.9

Furniture & Fixtures

-7.9

-5.3

Transport Equipment

-0.5

-1.2

Footwear & Wearing Apparel

-3.3

-1.6

Wood & Wood Products

-1.9

0.3

Leather Products

-2.1

-0.6

 
 
 
TABLE A-2   Producer Price Index, June 2018 and July 2018:
(2000=100)
 
 

INDUSTRY GROUP

Month-on-Month Growth (percent)

July 2018
June  2018
(revised)

Gainers

 

 

Petroleum Products

2.0

0.9

Electrical Machinery

1.7

0.4

Transport Equipment

1.0

-0.5

Basic Metals

1.4

a/

Paper & Paper Products

1.1

1.9

Beverages

0.4

0.5

Rubber and plastic products

0.5

0.1

Miscellaneous Manufactures

0.7

-1.1

Printing

0.3

2.1

Leather Products

0.2

-1.8

Tobacco Products

0.1

1.5

Losers

 

 

Fabricated Metal Products

-13.2

-1.8

Chemical Products

-0.6

0.1

Footwear & Wearing Apparel

-1.7

-1.5

Food Manufacturing

-0.1

0.4

Furniture & Fixtures

-2.6

-7.6

Wood & Wood Products

-1.5

2.8

Non - Metallic Mineral Products

b/

1.6

Machinery Except Electrical

b/

3.3

Textiles

b/

0.5

 
 
 
Notes:
a/ - Less than 0.1 percent increase
b/ - 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 the same month index of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month index by the previous month index less 1.
 
 
  • Response Rate

The response rate for July 2018 is 79.2 percent, which corresponds to the retrieval of 595 establishments’ reports out of the 751 samples for the survey. Refer to Tables 2 and B.

 

Table B Response Rates For Total Manufacturing
(In Percent)

July 2018

June 2018
(revised)
79.2
92.4r
r-revised

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:
 
 
 
 
 
JOSIE B. PEREZ
Assistant Secretary
(Deputy National Statistician)
Officer-in-Charge
 
 
 
 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI 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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 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:
 
 
 
           Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. 

           
  • 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 2018 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Food manufacturing *

C11

Beverages

C12

Tobacco products

C13

Textiles*

C14,C152

Footwear and wearing apparel

C151

Leather products

C16

Wood and wood products*

C17

Paper and paper products

C18

Printing and reproduction of recorded media

C19

Petroleum products*

C20,C21

Chemical products*

C22

Rubber and plastic products*

C23

Non-metallic mineral products*

C24

Basic Metals*

C25

Fabricated metal products

C262,C275,C28,C263,C268

Machinery except electrical*

C261,C264,C27,C29301

Electrical machinery*

C29 except C29301,C30

Transport equipment

C31

Furniture and fixtures

C265,C266,C267,C32

Miscellaneous manufactures

Note:  * - Major sectors categorized into sub-sectors

 

 

See more at the Producer Price Survey (PPS) main page.

 

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