• Producer Price Index decelerates in May 2016

The Producer Price Index (PPI, 2000=100) for manufacturing slowed down to 3.8 percent in May 2016 compared with a negative 7.0 percent a year earlier. This was due to the double-digit decreases exhibited by machinery except electrical (-18.2%), furniture and fixtures (-12.8%), basic metals (-12.5%) and footwear and wearing apparel (-10.4%).  On the other hand, miscellaneous manufactures (6.1%) led the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI likewise decelerated by 0.5 percent in May 2016 after posting a 0.4 percent growth a month earlier. Furniture and fixtures (-9.3%) led the eleven sectors that posted decreases. The increase in prices of the heavily-weighted petroleum products was not able to improve the overall monthly PPI. Moreover, four sectors posted flat growths and five sectors exhibited increases. Refer to Tables 1 and A-2.

• Introduction

• Method of Index Computation

• 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.

Note:  * - Major sectors categorized into sub-sectors

• Response Rate

The response rate for May 2016 is 71.2 percent, which corresponds to the retrieval of 536 establishments’ reports out of the 753 samples for the survey.  Refer to Tables 2 and B.

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.