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Release Date :
Reference Number :
2014-081

 

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

October 2014 and September 2014

TOTAL MANUFACTURING

October
2014
September
2014

Producer Price Index (2000=100)

151.0

152.2 r

          Year-on-Year Growth

-0.3

 0.7 r

         Month-on-Month Growth

-0.8

0.8

       r -revised
 
  •    Producer Price Index decelerates in October 2014

Producer Price Index (PPI, 2000=100) for manufacturing declined at a slower pace of 0.3 percent in October 2014 compared with negative 5.7 percent in October 2013. The downtrend was brought about by the decreases in prices of eight (8) major sectors led by furniture and fixtures (-11.5%). On the other hand, twelve sectors reflected increases led by tobacco products (11.4%), but their positive growths were not able to pull-up the October 2014 PPI. Refer to Tables 1 and A-1.

On a monthly basis, PPI moved down by 0.8 percent in October 2014 from a positive  0.8 percent a month earlier. The decrease was influenced by eight major sectors led by furniture and fixtures (-9.3%). Furthermore, the heavily weighted petroleum products which further decelerated by -5.5% in October 2014 contributed much to the negative performance of the monthly PPI. Meanwhile, 7 sectors reflected increases while four sectors remained flat. Refer to Tables 1 and A-2.

 

 

 

TABLE A-1   Producer Price Index, September 2014 – October 2014:
(2000=100)

 

Gainers

Year-on-Year Growth (percent)

October 2014
September  2014
(revised)

Electrical Machinery

4.9

2.5

Food Manufacturing

4.3

4.6

Chemical Products

3.2

1.9

Tobacco Products

11.4

11.4

Non-Metallic Mineral Products

3.2

2.6

Beverages

1.7

0.8

Rubber and Plastic Products

2.3

1.7

Wood and Wood Products

1.7

1.7

Leather Products

5.7

2.9

Textiles

1.0

0.9

Paper and Paper Products

0.5

0.7

Printing

0.0

0.0

 

Losers  

Year-on-Year Growth (percent)

October 2014
September 2014
(revised)

Petroleum Products

-7.0

-1.8

Basic Metals 

-9.2

-5.7

Machinery Except Electrical

-5.7

-7.6

Transport Equipment

-1.7

1.8

Fabricated Metal Products

-5.8

-5.8

Furniture and fixtures

-11.5

6.7

Miscellaneous Manufactures

-5.1

-5.9

Footwear and Wearing Apparel

-2.3

-0.3

 

TABLE A-2   Producer Price Index, September 2014 – October 2014:
(2000=100)

 

Gainers

Month-on-Month Growth (percent)

October 2014

September  2014
(revised)

Electrical Machinery

1.0

1.2

Chemical Products

0.7

1.7

Beverages

0.9

0.0

Food Manufacturing

0.1

-0.6

Miscellaneous Manufactures

0.1

0.7

Non-Metallic Mineral Products

0.0

0.9

Textiles

0.1

0.1

Fabricated Metal Products

0.0

1.1

Rubber and Plastic Products 

0.8

0.6

Printing

0.0

0.0

Tobacco

0.0

0.0

Leather Products

0.0

0.2

 

Losers

Month-on-Month Growth (percent)

October 2014
September 2014
(revised)

Petroleum Products

-5.5

-1.2

Transport Equipment

-1.6

0.9

Basic Metals

-1.4

0.5

Furniture and Fixtures

-9.3

3.7

Footwear and Wearing Apparel

-2.4

0.9

Machinery Except Electrical

-0.1

2.7

Wood & Wood Products

-0.2

-0.7

Paper and Paper Products

-0.1

-0.2

 
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 October 2014 is 90.5 percent, which corresponds to the retrieval of 326 establishments’ reports out of the 358 samples for the survey.  Refer to Table B.

Table B Response Rates For Total Manufacturing
(In Percent)

October 2014

September 2014
(revised)

90.5

97.2r

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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