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Release Date :
Reference Number :
2014-053

 

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

June 2014 and May 2014

TOTAL MANUFACTURING

June
2014
May
2014

Producer Price Index (2000=100)

149.0

150.7 r

          Year-on-Year Growth

-2.8

-1.1 r

         Month-on-Month Growth

-1.1

-0.1

r -revised

 

  • Producer Price Index post negative annual rate since April 2014

Producer Price Index (PPI, 2000=100) for manufacturing decreased by 2.8 percent in June 2014 compared with June 2013. This was mainly influenced by the significant downtick of furniture and fixtures (-33.8%). The other sectors that pulled down the PPI were the following: machinery except electrical (-8.9%), basic metals (-5.3%) and electrical machinery (-0.9%), transport equipment (-1.5%), chemical products (-1.8%), fabricated metal products (-3.3%) and miscellaneous manufactures (-4.0%).  On the other hand, the increases reflected by eleven major sectors led by food manufacturing (4.9%) did not result in the positive performance of the June 2014 PPI. Refer to Tables 1 and A-1.

On a month-on-month basis, PPI declined by 1.1 percent in June 2014 from a decreased of 1.0 percent in May 2014. Furniture and fixtures (-12.5%) led the nine sectors that posted decrements. Moreover, six sectors showed increases and five sectors recorded flat growths. Refer to Tables 1 and A-2

 

 

 
TABLE A-1   Producer Price Index, May 2014 - June 2014
(2000 = 100)

 

Gainers

Year-on-Year Growth (percent)

June 2014
May 2014
(revised)

Food Manufacturing

4.9

4.2

Petroleum Products

1.9

5.7

Non-Metallic Mineral Products

2.3

2.6

Rubber and Plastic Products

2.0

2.4

Tobacco Products

5.7

5.7

Beverages

0.9

0.9

Wood and Wood Products

2.9

4.7

Textile

2.3

2.6

Leather Products

2.7

2.9

Paper and Paper Products

0.3

4.2

Footwear and Wearing Apparel

0.1

-1.1

Printing

0.0

0.0

 

Losers

Year-on-Year Growth (percent)

 June 2014 
May 2014
(revised)

Machinery Except Electrical

-8.9

-5.4

Basic Metals

-5.3

-4.7

Furniture and fixtures

-33.8

-18.1

Electrical Machinery

-0.9

-2.1

Transport Equipment

-1.5

1.3

Chemical Products

-1.8

-0.9

Fabricated Metal Products

-3.3

-6.7

Miscellaneous Manufactures

-4.0

-5.9

 
 
TABLE A-2   Producer Price Index, May 2014 – June 2014
(2000 = 100)

 

Gainers

Month-on-Month Growth (percent)

June 2014
May 2014
(revised)

Food Manufacturing

0.8

0.0

Electrical Machinery

0.7

-4.3

Fabricated Metal Products

3.6

-3.5

Non-Metallic Mineral Products

1.1

-0.5

Miscellaneous Manufactures

1.5

-0.4

Rubber and Plastic Products

0.5

-0.4

Beverages

0.0

0.0

Printing

0.0

0.0

Tobacco

0.0

0.0

Leather Products

0.0

-0.1

Basic Metals

0.0

-0.3

 

Losers

Month-on-Month Growth (percent)

June 2014
May 2014
(revised)

Machinery Except Electrical

-5.0

0.0

Transport Equipment

-1.7

0.5

Furniture and Fixtures

-12.5

1.0

Paper and Paper Products

-2.5

0.3

Petroleum Products

-0.1

-1.6

Wood & Wood Products

-0.9

1.5

Chemical Products

-0.1

0.2

Footwear and Wearing Apparel

-0.1

-0.4

Textiles

-0.2

b/

 
 
Notes:
Sectors are ranked according to their contribution to the overall 2000-based growth rate.
b/ - Less than 0.1 percent decrease.
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 National Statistics Office 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 survey 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

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

 

  • Response Rate

The response rate for June 2014 is 93.0 percent, which corresponds to the retrieval of 333 establishments’ reports out of the 358 samples for the survey.  Refer to Table B.

Table B Response Rates For Total Manufacturing

(In Percent)

June 2014

May 2014
(revised)

93.0

96.9r

Missing prices for products of sample establishments are estimated using the short-term relative change of all available prices within the same industry class. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

 

(Sgd.) LISA GRACE S. BERSALES, Ph.D.
National Statistician

 

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