Producer Price Survey : October 2018

Reference Number: 

2018-188

Release Date: 

Thursday, November 29, 2018

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
October 2018, September 2018 and October 2017

TOTAL MANUFACTURING

October
2018
September
2018
October
2017

Producer Price Index (2000=100)

132.4

132.7 r

133.1

Year-on-Year Growth

 -0.6

 0.2

0.6

Month-on-Month Growth

-0.3

 0.7

0.5
r -revised
 
  • Producer Price Index slightly decreases in October 2018

The Producer Price Index (PPI, 2000=100) for manufacturing dropped by 0.6 percent in October 2018 compared with the index recorded in October 2017. This can be attributed to the decline in the indices of eight major industry groups with non-metallic mineral products posting the highest decrease of 10.3 percent. Meanwhile, increases where noted in 12 major industry groups led by tobacco products with 18.2 percent annual growth. Refer to Tables 1 and A-1.

Month-on-month, PPI slightly descended by 0.3 percent compared to its previous month’s positive rate of 0.7 percent. Eleven major industry groups pulled-down the monthly PPI which was led by basic metals with negative growth rate of 1.0 percent. Moreover, five major industry groups posted increases and four major industry groups reflected flat growths. Refer to Tables 1 and A-2.

 

 
 
 
 
 
 
TABLE A-1   Producer Price Index, September 2018 and October 2018:
(2000=100)
 

INDUSTRY GROUP

Year-on-Year Growth (percent)

October 2018
September 2018
(revised)

Gainers

 

 

Petroleum Products

18.0

19.6

Electrical Machinery

7.2

9.0

Beverages

14.7

15.5

Tobacco Products

18.2

51.8

Basic Metals

4.8

7.0

Miscellaneous Manufactures

8.8

9.8

Paper & Paper Products

2.9

4.3

Textiles

5.8

4.2

Printing

4.2

4.2

Footwear & Wearing Apparel

1.6

1.1

Transport Equipment

0.1

-1.0

Machinery Except Electrical

a/

1.2

Losers

 

 

Non-Metallic Mineral Products

-10.3

-11.3

Chemical Products

-1.8

-1.6

Rubber & Plastic Products

-3.7

-3.2

Food Manufacturing

-0.4

-2.3

Furniture & Fixtures

-8.2

-6.6

Wood & Wood Products

-3.1

-3.2

Leather Products

-5.0

-3.0

Fabricated Metal Products

-0.7

-1.0

 
 
 
TABLE A-2   Producer Price Index, September 2018 and October 2018:
(2000=100)
 
 

INDUSTRY GROUP

Month-on-Month Growth (percent)

October 2018
September 2018
(revised)

Gainers

 

 

Non-Metallic Mineral Products

1.2

-0.8

Transport Equipment

0.2

0.8

Fabricated Metal Products

0.8

2.3

Textiles

1.7

-0.2

Wood & Wood Products

0.2

-2.0

Tobacco Products

0.0

a/

Beverages

0.0

0.0

Printing

0.0

0.0

Leather Products

0.0

-5.3

Losers

 

 

Electrical Machinery

-0.8

1.4

Petroleum Products

-0.5

3.0

Basic Metals

-1.0

0.4

Machinery Except Electrical

-0.6

1.4

Food Manufacturing

-0.1

-0.3

Paper & Paper Products

-0.6

0.7

Furniture & Fixtures

-0.9

0.8

Miscellaneous Manufactures

-0.4

0.4

Rubber & Plastic Products

-0.1

0.2

Chemical Products

b/

b/

Footwear & Wearing Apparel

-0.1

2.2

 
 
 
Notes:
a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
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 the same month index 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.
 

 

 
FOR THE NATIONAL STATISTICIAN:
 
 
 
 
DANIEL A. ARIASO, SR., CESO II
Assistant Secretary
Deputy National Statistician
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 2018 PPI, the weights of the major sectors and sub-sectors were computed based from the results of the 2014 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:
 
 
 
           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 2018 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

 

 

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

 

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