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Release Date :
Reference Number :
2014-044

 

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

May 2014 and April 2014

TOTAL MANUFACTURING

May
2014
April
2014

Producer Price Index (2000=100)

150.8

152.5 r

          Year-on-Year Growth

-1.0

0.1 r

         Month-on-Month Growth

-1.1

-0.1

r -revised

 

  • Producer Price Index shows negative annual growth in May 2014

Producer Price Index (PPI, 2000=100)  for manufacturing declined by 1.0 percent in May 2014 compared with May 2013. This was brought about by the decrements posted by seven sectors led by furniture and fixtures (-18.1%). On the other hand, thirteen major sectors reflected single-digit year-on-year increments led by food manufacturing (4.1%). The positive performance of these sectors, however, were not able to pull up the annual growth rate of the May 2014 PPI. Refer to Tables 1 and A-1.

On a month-on-month basis, PPI went down further by 1.1 percent in May 2014 after decreasing by 0.1 percent in April 2014. The downtrend was attributable to the decreases in price of ten sectors including the two heavily weighted sectors namely: electrical machinery (-4.8%) and petroleum products (-1.6%). Moreover, five sectors remain unchanged. Refer to Tables 1 and A-2

 

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

Gainers

Year-on-Year Growth (percent)

May 2014
April  2014

(revised)

Food Manufacturing

4.1

4.5

Petroleum Products

5.7

8.2

Chemical Products

3.3

3.4

Transport Equipment

1.3

1.5

Non-Metallic Mineral Products

2.3

3.2

Paper and Paper Products

4.2

2.6

Tobacco Products

5.7

5.7

Rubber and Plastic Products

1.8

2.6

Beverages

0.9

0.6

Wood and Wood Products

4.0

3.1

Textile

2.6

2.6

Leather Products

2.9

3.2

Printing

0.0

0.0

 

Losers 

Year-on-Year Growth (percent)

May 2014
April 2014
(revised)

Electrical Machinery

-2.9

3.6

Machinery Except Electrical

-5.4

-3.2

Basic Metals

-4.7

-9.7

Fabricated Metal Products

-6.7

-3.5

Miscellaneous Manufactures

-5.9

-2.3

Furniture and fixtures

-18.1

-27.9

Footwear and Wearing Apparel

-1.1

-0.9

 

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

Gainers

Month-on-Month Growth (percent)

May 2014
April  2014
(revised)

Transport Equipment

0.5

-0.9

Chemical Products

0.5

3.1

Wood & Wood Products

0.8

-0.1

Furniture and Fixtures

1.0

-5.0

Paper and Paper Products

0.3

-0.3

Machinery Except Electrical

0.0

7.7

Textiles

0.0

0.3

Beverages

0.0

0.1

Printing

0.0

0.0

Tobacco

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

May 2014
April 2014
(revised)

Electrical Machinery

-4.8

-2.1

Petroleum Products

-1.6

1.0

Fabricated Metal Products

-3.5

0.3

Non-Metallic Mineral Products

-0.8

-0.5

Basic Metals

-0.4

-1.4

Rubber and Plastic Products 

-0.6

-0.9

Food Manufacturing

-0.1

-0.4

Miscellaneous Manufactures

-0.4

-3.2

Footwear and Wearing Apparel

-0.4

-0.2

Leather Products

-0.1

-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 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 May 2014 is 90.2 percent, which corresponds to the retrieval of 323 establishments’ reports out of the 358 samples for the survey.  Refer to Table B.

Table B Response Rates For Total Manufacturing

(In Percent)

May 2014

April 2014
(revised)

90.2

95.8r

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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