·  Producer Price Index posts negative rate

The Producer Price Index (PPI, 2000=100) for the manufacturing industry registered a slower decline of 4.1 percent in November 2009, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. This was brought about by eleven major sectors with double-digit decrease exhibited by the following: furniture and fixtures (-28.1%), basic metals (-24.2%), miscellaneous manufactures (-13.6%), paper and paper products (-13.1%) and electrical machinery (-12.7%). On the other hand, nine major sectors posted price increases led by wood and wood products (19.6%) andpetroleum products (16.6%). Refer to Tables 1 and 1-B.

PPI on a month-on month basis, recovered with a 0.5 percent growth in November from a 1.6 percent drop in the previous month. This was brought about by price increases exhibited by six major sectors led bypetroleum products (7.7%). Moreover, flat growths were observed in nine major sectors. Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for October 2009 is 85.4 percent, which corresponds to the retrieval of 269 sample establishments reports. Refer to Table 2.

Response Rates for Total Manufacturing
(In percent)

·  Technical Notes

The 2009 PPI Release utilizes the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, consisting of two sub-sectors, namely: Rubber Products and Plastic Products . Rubber Productswas previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously, with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The weights of the major sectors and sub-sectors have been computed utilizing the results of the 2006 Census of Philippine Business and Industry for Manufacturing Establishments of ATE 20 and over. This allow the use of current available weights.

Thus, in this publication, the results of the PPI were recomputed with 2006 CPBI as weights beginning January 2009.

Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, OCTOBER 2009 - NOVEMBER 2009 
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, OCTOBER 2009 - NOVEMBER 2009 
(2000=100)

Note:

* - new sector in the 2000-based series

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

Source:   National Statistics Office
                 Manila, Philippines