r-revised

• Producer Price Index maintains an upward trend
  

  The Producer Price Index (PPI, 2000=100) for the manufacturing sector climbed to 3 percent in June 2011, according to the preliminary results of the monthly Producer Price Survey. Eleven major sectors posted increments with significant growths exhibited by the following: petroleum products (20.8%); machinery except electrical (16.2%) and basic metals (14.4%). However, decreased prices were observed in six major sectors led by furniture & fixtures (-40.3%). Refer to Tables 1 and 1-B.

  On a monthly basis, PPI increased to 1.7 percent in June 2011 from 0.1 percent in May. This was accounted by the increases posted by eleven major sectors led by machinery except electrical (13.2%). On the other hand, decrements were posted by six sectors led by furniture and fixtures (9.1%). Refer to Tables 1 and 1-B.

• Response Rate
  

  The response rate for June 2011 is 85.8 percent, which corresponds to the retrieval of 273 sample establishments? reports. Refer to Table 2.

  Response Rates for Total Manufacturing
  (In percent)

  June 2011	May 2011            (revised)
  85.8	94.3r

• Technical Notes
  

  The National Statistics Office generates various price indices, one of this is the Producer Price Index. (PPI). The PPI is generated through the results of the Producers Price Survey (PPS) conducted nationwide. The survey gathers monthly actual producer prices of selected products included in the market basket.

  PPI utilizes the Paasche-type method of index computation with weights computed from the production concentration ratio of the Census of Philippine Business and Industry (CPBI)/ Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI/CPBI are available and applied at the beginning of each survey year.

  Hence, the weights of the major sectors and sub-sectors for the 2009 PPI were computed from the results of the 2006 CPBI for Manufacturing Establishments of total employment of 20 and over, which is the latest census results.

  Moreover, for industry classification, the 2010 PPI utilizes the amended 1994 Philippine Standard Industry Classification. There are 20 major sectors covered by the 2010 PPS with three consisting of subsectors.

  Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

  (Sgd.) CARMELITA N. ERICTA                                                                                                                Administrator

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  TABLE 1-A. PRODUCER PRICE INDEX, MAY 2011 - JUNE 2011
  (2000=100)

  Gainers	Year-on-Year Growth (percent)
  	June 2011	May 2011 (revised)
  Petroleum Products	20.8	24.8
  Machinery Except Electrical	16.2	4.5
  Food Manufacturing	9.4	10.3
  Basic Metals	14.4	12.4
  Non-Metallic Mineral Products	5.7	1.4
  Rubber and Plastic Products*	4.8	5.1
  Transport Equipment	2.1	1.9
  Tobacco Products	4.5	4.8
  Textiles	6.4	7.3
  Fabricated Metal Products	2.2	1.7
  Chemical Products	0.2	-0.3
  Leather Products	1.4	2.3
  Wood and Wood Products	0.1	0.1
  Publishing and Printing	0.0	0.0
  Losers	Year-on-Year Growth (percent)
  	June 2011	May 2011 (revised)
  Electrical Machinery	-5.1	-4.1
  Furniture and Fixtures	-40.3	-38.3
  Miscellaneous Manufactures	-11.6	-6.6
  Beverages	-4.8	-4.2
  Paper and Paper Products	-1.8	-3.1
  Footwear and Wearing Apparel	-0.3	2.2

  TABLE 1-B. PRODUCER PRICE INDEX, MAY 2011 - JUNE 2011
  (2000=100)

  Gainers	Month-on-Month Growth (percent)
  	June 2011	May 2011 (revised)
  Machinery Except Electrical	13.2	1.7
  Non-Metallic Mineral Products	6.1	0.3
  Basic Metals	1.7	-0.7
  Transport Equipment	1.2	1.7
  Food Manufacturing	0.1	0.4
  Chemical Products	0.2	0.6
  Petroleum Products	0.1	-5.5
  Fabricated Metal Products	0.4	0.0
  Paper and Paper Products	0.3	1.6
  Leather Products	0.4	0.0
  Textiles	0.1	-1.7
  Tobacco Products	0.0	0.0
  Publishing and Printing	0.0	0.0
  Wood and Wood Products	0.0	0.0
  Losers	Month-on-Month Growth (percent)
  	June 2011	May 2011 (revised)
  Miscellaneous Manufactures	-4.8	2.9
  Furniture and Fixtures	-9.1	-7.0
  Electrical Machinery	-0.3	0.1
  Beverages	-0.6	0.0
  Footwear and Wearing Apaprel	-0.4	0.1
  Rubber and Plastic Products*	-0.2	0.6

  Note:

  * - new sector in the 2000-based series

  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

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  Source:   National Statistics Office
                   Manila, Philippines