Producer Price Survey : September 2018

Reference Number: 

2018-168

Release Date: 

Wednesday, October 31, 2018

 

 

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

TOTAL MANUFACTURING

September
2018
August
2018
September
2017

Producer Price Index (2000=100)

132.1

131.6 r

132.4

Year-on-Year Growth

 -0.2

 -0.8

-0.5

Month-on-Month Growth

0.4

 0.1

-0.2
r -revised
 
  • Producer Price Index slightly declines in September 2018

The Producer Price Index (PPI, 2000=100) for manufacturing dropped at a slower rate of 0.2 percent in September 2018 compared with the 0.5 percent decline in the previous year. This was due to the decreases in the indices of nine major sectors with non-metallic mineral products posting the highest decrease of 11.6 percent followed by furniture and fixtures with a decrease of 7.1 percent. On the other hand, tobacco products (51.8%) led the 11 major sectors that posted increases. Refer to Tables 1 and A-1.

By month, PPI went up by 0.4 percent from the previous month’s rate of 0.1 percent with petroleum products (3.0%) dominating the increase along with other 11 major sectors. Meanwhile, five sectors posted decreases while three sectors reflected flat growth rate. Refer to Tables 1 and A-2.

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

INDUSTRY GROUP

Year-on-Year Growth (percent)

September 2018
August 2018
(revised)

Gainers

 

 

Petroleum Products

19.6

17.7

Tobacco Products

51.8

51.8

Electrical Machinery

8.3

7.2

Beverages

15.5

15.5

Basic Metals

6.6

7.0

Miscellaneous Manufactures

9.8

9.1

Paper & Paper Products

4.3

0.9

Machinery Except Electrical

0.9

-0.2

Textiles

4.0

4.3

Printing

4.2

4.2

Footwear & Wearing Apparel

0.3

-1.0

Losers

 

 

Food Manufacturing

-2.8

-2.2

Non-Metallic Mineral Products

-11.6

-10.5

Transport Equipment

-1.3

-1.1

Rubber & Plastic Products

-3.2

-3.5

Chemical Products

-1.4

-2.5

Fabricated Metal Products

-3.7

-7.3

Furniture & Fixtures

-7.1

-8.2

Wood & Wood Products

-3.0

-1.2

Leather Products

-2.3

-7.2

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

INDUSTRY GROUP

Month-on-Month Growth (percent)

September 2018
August 2018
(revised)

Gainers

 

 

Petroleum Products

3.0

-0.5

Electrical Machinery

0.8

0.7

Machinery Except Electrical

1.1

0.3

Transport Equipment

0.5

-0.9

Basic Metals

0.4

0.3

Footwear & Wearing Apparel

1.5

2.9

Fabricated Metal Products

0.6

-1.4

Paper & Paper Products

0.7

-0.5

Chemical Products

0.2

b/

Furniture & Fixtures

0.9

0.5

Miscellaneous Manufactures

0.4

0.5

Rubber & Plastic Products

0.2

a/

Tobacco Products

0.0

0.1

Beverages

0.0

0.0

Printing

0.0

0.0

Losers

 

 

Food Manufacturing

-0.9

a/

Non-Metallic Mineral Products

-1.1

1.4

Leather Products

-4.6

3.0

Wood & Wood Products

-1.7

0.7

Textiles

-0.3

-0.1

 
 
 
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 index less 1.
 

 

 
 
 
 
LISA GRACE S. BERSALES, Ph. D.
Undersecretary
National Statistician and Civil Registrar General
 
 
 
 
 
 
 

 
 
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) 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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