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Release Date :
Reference Number :
2015-090

 

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

September 2015 and August 2015

TOTAL MANUFACTURING

September
2015
August
2015
Producer Price Index (2000=100)

140.0

139.2 r

          Year-on-Year Growth

-8.1

 -7.9 r

         Month-on-Month Growth

0.6

-0.1

     
  r -revised
 
  •    Producer Price Index remains at a negative rate in September 2015

Producer Price Index (PPI, 2000=100) for manufacturing decelerated by -8.1 percent in September 2015 compared with positive 0.8 percent recorded in September 2014. The downtrend was brought about by the double-digit decrements of the heavily-weighted sectors namely: petroleum products (-22.2%), electrical machinery (-17.0%) and basic metals (-13.8%), including the significant decreases posted by furniture and fixtures (-39.9%) and wood and wood products (-19.1%). On the other hand, ten sectors posted single-digit increases in prices led by beverages (8.0%). Refer to Tables 1 and A-1.

On a month-on-month performance, PPI bounced back posting an increase of 0.6 percent from a negative 0.1 percent during the previous month. The turnaround was mainly due to the positive growth rates of the two heavily-weighted sectors: electrical machinery (4.5%) and petroleum products (3.1%) from decreases reflected the previous month. Meanwhile, six major sectors posted decreases while three sectors reflected flat growths. Refer to Tables 1 and A-2.

 

 

 

TABLE A-1   Producer Price Index, August 2015 and September 2015:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

September 2015
August 2015
(revised)
Beverages

8.0

8.9

Machinery Except Electrical

1.8

4.2

Miscellaneous Manufactures

5.7

6.2

Chemical Products

1.4

2.5

Food Manufacturing

0.4

-0.3

Paper and Paper Products

3.6

2.6

Fabricated Metal Products

0.9

1.5

Tobacco Products

0.9

0.9

Textiles

1.7

1.3

Leather Products

1.3

1.3

 

Losers  

Year-on-Year Growth (percent)

September 2015
August 2015
(revised)
Electrical Machinery

-17.0

-19.6

Petroleum Products

-22.2

-25.4

Furniture and fixtures

-39.9

-32.4

Basic Metals

-13.8

-13.5

Transport Equipment

-2.8

-1.0

Non-Metallic Mineral Products

-6.5

-5.7

Wood and Wood Products

-19.1

-19.0

Rubber and Plastic Products

-3.0

-2.2

Footwear and Wearing Apparel

-1.7

1.1

Printing

-1.6

-1.6

 

TABLE A-2   Producer Price Index, August 2015 – September 2015:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

September 2015
August  2015
(revised)
Electrical Machinery

4.5

-1.1

Petroleum Products

3.1

-1.6

Machinery except Electrical

0.3

1.8

Food Manufacturing

a/

-0.4

Fabricated Metal Products

0.6

0.2

Paper and Paper Products

0.7

0.5

Miscellaneous Manufactures

0.3

1.7

Basic Metals

a/

-1.5

Non-Metallic Mineral Products

a/

0.3

Leather Products

0.1

0.5

Textiles

0.0

0.1

Printing

a/

0.1

Beverages

0.0

0.0

Tobacco

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

September 2015
August 2015
(revised)
Transport Equipment

-1.0

0.4

Footwear and Wearing Apparel

-4.1

1.2

Furniture and  Fixtures 

-7.8

1.5

Chemical Products

-0.5

0.3

Wood and Wood Products

-0.2

2.0

Rubber and Plastic Products

-0.3

0.6

 

Notes:
a/ - Less than 0.1 percent increase
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 Philippine Statistics Authority 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 census 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

C10Food manufacturing *
C11Beverages
C12Tobacco products
C13Textiles*
C14,C152Footwear and wearing apparel
C151Leather products
C16Wood and wood products*
C17Paper and paper products
C18Printing and reproduction of recorded media
C19Petroleum products*
C20,C21Chemical products*
C22Rubber and plastic products*
C23Non-metallic mineral products*
C24Basic Metals*
C25Fabricated metal products
C262,C275,C28,C263,C268Machinery except electrical*
C261,C264,C27,C29301Electrical machinery*
C29 except C29301,C30Transport equipment
C31Furniture and fixtures
C265,C266,C267,C32Miscellaneous manufactures

Note:  * - Major sectors categorized into sub-sectors

 

  • Response Rate

The response rate for September 2015 is 84.2 percent, which corresponds to the retrieval of 613 establishments’ reports out of the 728 samples for the survey.  Refer to Table B.

Response rates for wood and wood products and rubber and plastic products both reached 100 percent. Refer to Table 2.

Table B Response Rates For Total Manufacturing
(In Percent)

September 2015

August 2015
(revised)

84.2

90.9r

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.

 

 

(Sgd.) LISA GRACE S. BERSALES, Ph.D.
National Statistician

 

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