Producer Price Survey : March 2016

Reference Number: 

2016-054

Release Date: 

Thursday, May 5, 2016

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
March 2016, February 2016 and March 2015

TOTAL MANUFACTURING

March
2016
February
2016
March
2015

Producer Price Index (2000=100)

136.4

136.7 r

144.4 r

          Year-on-Year Growth

-5.5

 -5.0 r

-5.5 r

         Month-on-Month Growth

-0.2

-0.2 r

0.3 r
r -revised
 
  • Producer Price Index posts same rate as previous year's

The Producer Price Index (PPI, 2000=100) for manufacturing decelerated by 5.5 percent in March 2016, the same rate observed during the same month last year. This can be traced to the double-digit decrements reflected by three major sectors namely: machinery except electrical (-15.2%), furniture and fixtures (-12.8%) and basic metals (-10.5%).  On the other hand, miscellaneous manufactures (2.8%) led the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI keeps its previous month’s rate of negative 0.2 percent in March 2016. This was due to the decreases reflected by fourteen major sectors led by furniture and fixtures (-2.5%). Moreover, three major sectors remained unchanged while three major sectors posted increases. Refer to Tables 1 and A-2.

 
 
 
 
TABLE A-1   Producer Price Index, February 2016 and March 2016:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

March 2016
February 2016
(revised)

Beverages

2.7

2.7

Food Manufacturing

0.6

-0.2

Non-Metallic Mineral Products

2.1

3.1

Miscellaneous Manufactures

2.8

3.2

Fabricated Metal Products

1.2

2.0

Paper and Paper Products

1.4

2.4

Leather Products

0.8

1.6

Textiles

0.5

0.5

Tobacco Products

0.0

0.0

 
 

Losers  

Year-on-Year Growth (percent)

March 2016
February 2016
(revised)

Electrical Machinery

-8.0

-6.3

Machinery except Electrical

-15.2

-12.0

Petroleum Products

-8.9

-9.9

Basic Metals

-10.5

-11.0

Rubber and Plastic Products

-5.1

-4.2

Transport Equipment

-1.2

-2.4

Footwear and Wearing Apparel

-4.3

-7.9

Furniture and fixtures

-12.8

-14.2

Wood and Wood Products

-6.3

-7.9

Chemical Products

-0.6

-0.9

Printing

-0.6

-0.4

 
TABLE A-2   Producer Price Index, February 2016 – March 2016:
 (2000=100)
 

Gainers

Month-on-Month Growth (percent)

March 2016
February 2016
(revised)

Petroleum Products

7.9

-3.5

Food Manufacturing

0.6

0.3

Miscellaneous Manufactures

0.6

-0.1

Beverages

0.0

0.0

Textiles

0.0

-0.3

Tobacco Products

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

March 2016
February 2016
(revised)

Electrical Machinery

-0.8

-0.3

Machinery except Electrical

-1.9

-0.1

Basic Metals

-1.7

0.0

Non-Metallic Mineral Products

-1.0

-0.3

Transport Equipment

-0.2

0.3

Furniture and Fixtures

-2.5

0.6

Rubber and Plastic Products

-0.4

0.0

Fabricated Metal Products

-0.5

1.4

Chemical Products

-0.2

-0.4

Paper and Paper Products

-0.5

-0.1

Footwear and Wearing Apparel

-0.5

-1.4

Wood and Wood Products

-0.4

0.4

Printing

-0.1

0.0

Leather Products

-0.6

-0.1

 
 
Notes:
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 2015 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2012 CPBI 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 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.

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 March 2016 is 72.1 percent, which corresponds to the retrieval of 545 establishments reports out of the 756 samples for the survey.Refer to Tables 2 and B.

Table B Response Rates For Total Manufacturing
(In Percent)

March 2016

February 2016
(revised)

72.1

84.3r

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.

 

 

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

 

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