Producer Price Index (PPI, 2000=100) for manufacturing further decreased by 6.4 percent in September 2013, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. This was brought about by the significant decreases reflected by three major sectors led by furniture and fixtures which decreased to 43.9 percent from negative 44.9 in August 2013. The two other sectors were the following: basic metals (-13.9%) and machinery except electrical (-10.6%).On the other hand, nine sectors posted increases led by miscellaneous manufactures (12.4%). Refer to Tables 1 and A-1.

Losers	Year-on-Year Growth (percent)
	September 2013	August 2013 (revised)
Machinery Except Electrical	-10.6	-9.0
Basic Metals	-13.9	-11.9
Food Manufacturing	-5.2	-6.4
Transport Equipment	-9.6	-8.5
Chemical Products	-6.3	-3.0
Furniture and fixtures	-43.9	-44.9
Rubber and Plastic Products	-8.2	-12.5
Tobacco Products	-7.1	-7.1
Paper and Paper Products	-4.3	-4.2
Fabricated Metal Products	-2.4	-2.4
Non-Metallic Mineral Products	-0.7	2.2

Gainers	Month-on-Month Growth (percent)
	September 2013	August 2013 (revised)
Fabricated Metal Products	1.5	-1.4
Transport Equipment	0.0	-1.3
Beverages	0.0	0.0
Printing	0.0	0.0
Tobacco	0.0	0.0
Footwear and Wearing Apparel	0.0	-0.3

Losers	Month-on-Month Growth (percent)
	September 2013	August 2013 (revised)
Electrical Machinery	-1.9	2.5
Machinery Except Electrical	-2.7	2.0
Petroleum Products	-1.3	5.1
Chemical Products	-1.1	-0.4
Basic Metals	-1.0	0.9
Furniture & Fixtures	-4.0	0.2
Miscellaneous Manufactures	-1.5	2.5
Paper and Paper Products	-1.2	0.1
Non-Metallic Mineral Products	-0.4	0.6
Rubber and Plastic Products	-0.2	0.1
Wood & Wood Products	-0.5	0.4
Food Manufacturing	0.0	1.7
Leather Products	-0.2	0.1
Textiles	0.0	0.3

 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 2013 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: