Producer Price Survey : March 2019

Reference Number: 

2019-064

Release Date: 

Tuesday, April 30, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
March 2019, February 2019 and March 2018

TOTAL MANUFACTURING

March
2019
February
2019
March
2018

Producer Price Index (2000=100)

137.9

137.9 r

133.1

Year-on-Year Growth (%)

 3.6

2.6

-0.6

Month-on-Month Growth (%)

0.02

-0.9

-0.9
r -revised
 
  • Producer Price Index posts increment in March 2019

The Producer Price Index (PPI, 2000=100) for manufacturing increased at an annual rate of 3.6 percent in March 2019 from a negative growth rate of 0.6 percent during the same period of previous year. The upturn can be attributed to the increases of 13 major industry groups with furniture and fixtures posting a double-digit increment of 55.0 percent. On the contrary, chemical products with negative annual growth rate of 5.5 percent, led the seven industry groups that posted annual decreases. Refer to Tables 1 and A-1.

Month-on-month, PPI slightly increased by 0.02 percent compared to its previous month’s rate of negative 0.9 percent. Ten major industry groups pulled-up the monthly PPI which was led by leather products with a growth rate of 8.4 percent. Moreover, seven major industry groups posted decreases and three major industry groups reflected flat growths. Refer to Tables 1 and A-2.

 

 

 

 
TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
February 2019 and March 2019:
(2000=100)
 

INDUSTRY GROUP

March 2019
February 2019
(revised)

Gainers

 

 

Transport Equipment

3.5

2.7

Petroleum Products

4.8

2.9

Non-Metallic Mineral Products

9.1

10.5

Furniture & Fixtures

55.0

45.4

Rubber & Plastic Products

5.6

6.3

Tobacco Products

5.2

5.2

Electrical Machinery

1.2

a/

Beverages

2.6

2.6

Paper & Paper Products

4.8

1.3

Fabricated Metal Products

3.6

1.1

Textiles

3.1

4.3

Printing

2.3

3.2

Leather Products

2.2

-5.8

Losers

 

 

Food Manufacturing

-3.6

-3.2

Chemical Products

-5.5

-4.8

Machinery Except Electrical

-3.6

-0.6

Basic Metals

-5.0

-5.2

Miscellaneous Manufactures

-4.7

-4.7

Wood & Wood Products

-3.3

-9.0

Footwear & Wearing Apparel

-1.6

-3.4

a/ - Less than 0.05 percent increase
 
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate
 
 
 
 
TABLE A-2   Month-on-month Growth Rate (%) of Producer Price Index,
February 2019 and March 2019:
(2000=100)
 

INDUSTRY GROUP

March 2019
February 2019
(revised)

Gainers

 

 

Petroleum Products

1.6

2.0

Electrical Machinery

0.9

-0.6

Leather Products

8.4

0.4

Transport Equipment

0.4

0.3

Footwear & Wearing Apparel

1.3

-1.5

Basic Metals

0.3

-1.8

Fabricated Metal Products

0.5

-1.7

Miscellaneous Manufactures

0.6

b/

Wood & Wood Products

0.7

-2.7

Textiles

0.4

1.0

Tobacco Products

0.0

7.0

Printing

0.0

0.0

Beverages

0.0

0.9

Losers

 

 

Machinery Except Electrical

-2.7

-7.1

Non-Metallic Mineral Products

-0.6

0.3

Food Manufacturing

-0.1

-0.5

Chemical Products

-0.1

-0.3

Rubber & Plastic Products

-0.2

-0.3

Paper & Paper Products

-0.1

-0.5

Furniture & Fixtures

-0.2

-1.0

b/ - Less than 0.05 percent decrease
 
 
Notes:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

JOSIE B. PEREZ
Assistant Secretary
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) which is 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 2019 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2015 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:
 
 
  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 
 
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 2019 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 industry groups categorized into sub-industry classes

 

 

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

 

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