A. Year-on-Year Growth for January 2023
1. Manufacture of transport equipment industry division was the primary driver to the slower annual increase of producer price index for manufacturing sector
The Producer Price Index (PPI) for manufacturing registered an annual increase of 4.2 percent in January 2023. This was slower than the 5.1 percent annual increment noted in December 2022. In January 2022, an annual increase of 4.0 percent was observed. (Figure 1, and Tables A and 1)
The slower year-on-year growth rate of PPI in January 2023 compared with its annual growth rate in December 2022 was mainly brought about by the decline in the index of manufacture of transport equipment industry division with -0.8 percent annual decrease in January 2023 from 4.2 percent annual increase in December 2022. The manufacture of transport equipment contributed 41.4 percent to the slower annual growth rate of the PPI for manufacturing sector in January 2023. Out of the 22 industry divisions for the manufacturing sector, this industry division has the third highest weight in the computation of PPI.
Other primary contributors to the slower annual growth of PPI in January 2023 were manufacture of food products with 6.5 percent annual growth rate during the period from 7.7 percent in the previous month, and manufacture of chemical and chemical products with an annual growth of 2.6 percent in January 2023 from 6.9 percent in December 2022. In addition, slowdowns in the annual growth rates were observed in the indices of 10 industry divisions.
On the contrary, there were eight industry divisions that registered higher annual growth rates in their PPI for January 2023 than in December 2022. Manufacture of fabricated metal products, except machinery and equipment led these industry divisions registering 6.5 percent annual growth in January 2023 from 3.5 percent in December 2022.
Furthermore, the index of manufacture of basic pharmaceutical products and pharmaceutical preparations retained its year-on-year increase in December 2022 at 1.2 percent. (Tables B and 1)
2. Manufacture of grain mill products, starches and starch products was the main contributor to the slowdown in the annual increase of producer price index for food manufacturing
The PPI for the manufacture of food products continued to post a positive growth with an annual rate of 6.5 percent in January 2023. However, this was slower compared with the December 2022 annual growth rate of 7.7 percent, but faster relative to the January 2022 annual increase of 5.9 percent. (Figure 2, Tables 1 and 2)
The deceleration in the annual growth of the PPI for manufacture of food products in January 2023 from December 2022 was primarily attributed to the slower annual increase in the index of manufacture of grain mill products, starches and starch products industry group with 8.0 percent annual increment in January 2023 from 13.6 percent in the previous month. Other main contributors were processing and preserving of fish, crustaceans and mollusks with 6.9 percent annual increase during the month from 11.5 percent in December 2022, and manufacture of other food products, which includes bakery products, sugar, condiments, among others, with 8.3 percent annual upturn in January 2023 from 9.5 percent in the previous month. (Table 2)
B. Month-on-Month Growth for January 2023
3. Manufacture of computer, electronic and optical products was the main driver to the monthly increase of producer price index for manufacturing sector
Month-on-month, the PPI for manufacturing posted an increment of 0.3 percent in January 2023, after exhibiting a -0.9 percent monthly rate in December 2022. In January 2022, the PPI posted a monthly increase of 1.2 percent. (Figure 3, and Tables A and 1)
The monthly increase of PPI in January 2023 was mainly contributed by the month-on-month upturn in the index of manufacture of computer, electronic and optical products at 1.7 percent. This industry division contributed more than half or 55.6 percent to the uptrend in the monthly growth rate of the PPI for manufacturing sector in January 2023. Completing the top three contributors were manufacture of coke and refined petroleum products and manufacture of fabricated metal products, except machinery and equipment with monthly increases of 0.1 percent and 4.7 percent, respectively. In addition, six industry divisions exhibited higher month-on-month increments in their indices during the month, which include the manufacture of food products.
On the other hand, there were three industry divisions that showed slowdowns in their monthly increments in January 2023, with manufacture of paper and paper products posting the largest deceleration at 0.7 percent from 1.4 percent in the previous month.
Moreover, there were four industry divisions that continued to record negative monthly growth rates during the period which was led by the manufacture of transport equipment at -4.0 percent from -1.3 percent in December 2022. Meanwhile, the indices of manufacture of wood, bamboo, cane, rattan articles and related products; and other manufacturing and repair and installation of machinery and equipment registered monthly decreases of -2.1 percent and -0.9 percent, respectively, from their monthly increments in December 2022.
Furthermore, four industry divisions registered 0.0 percent monthly rate in their PPI in January 2023. (Tables C and 1)
4. Processing and preserving of fish, crustaceans and mollusks was the primary contributor to the monthly increase in the producer price index for food manufacturing
Month-on-month, the PPI for the manufacture of food products posted an increase with a monthly growth rate of 0.4 percent in January 2023 from a monthly decline of -0.02 percent in the previous month. In January 2022, the PPI for the manufacture of food products grew faster with a monthly increment of 1.5 percent. (Figure 4, Tables 1 and 2)
The monthly increase in the PPI for food manufacturing during the period was brought about by four of the eight industry groups. This was led by the processing and preserving of fish, crustaceans and mollusks, which posted a monthly growth rate of 2.1 percent, from a -3.4 percent monthly drop in December 2022. This industry group contributed 51.6 percent to the month-on-month upturn of the PPI for the manufacture of food products.
Other main contributors were manufacture of prepared animal feeds with 2.6 percent monthly uptick in January 2023, from a monthly decrement of -2.3 percent in December 2022, and manufacture of other food products, which includes bakery products, sugar, condiments, among others, with monthly growth rate of 0.2 percent during the period, from -0.1 percent monthly decline in the previous month.
On the other hand, slowdowns were recorded in the PPI of the processing and preserving of fruits and vegetables; and manufacture of dairy products, both with month-on-month increase of 0.1 percent in January 2023. Meanwhile, the index of the manufacture of vegetable and animal oils and fats dropped by -0.1 percent during the period from a monthly upturn in December 2022.
Lastly, manufacture of grain mill products, starches and starch products posted a faster monthly decline in January 2023 with -0.5 percent from -0.3 percent in the previous month. (Table 2)
DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
- Introduction
- Method of Index Computation
Note:
A linking factor is computed every time weights are changed. The linking factor is used to adjust new series for comparability with the old series.
- Computation of Growth Rates
Year-on-year growth rates are computed by dividing the current month’s index by the index of the same month of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month’s index by the previous month’s index less 1.
- Imputation and Revision
Imputation is done for sample establishments that are in operation during the reference period but with no received response during the release date. Results are revised accordingly when the actual data are received, and these revisions are reflected in the next release.
- Industry Coverage
Starting with the January 2013 reference month, PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry groups of the 2009 PSIC were grouped to form the 22 industry divisions of the 2021 PPS. These are presented in the table below.
| 2009 PSIC CODE | INDUSTRY DESCRIPTION |
|---|---|
| C10 | Manufacture of food products * |
| C11 | Manufacture of beverages |
| C12 | Manufacture of tobacco products |
| C13 | Manufacture of Textiles |
| C14 | Manufacture of wearing apparel |
| C15 | Manufacture of leather and related products, including footwear |
| C16 | Manufacture of wood, bamboo, cane, rattan articles, and related products products* |
| C17 | Manufacture of paper and paper products |
| C18 | Printing and reproduction of recorded media |
| C19 | Manufacture of coke and refined petroleum products |
| C20 | Manufacture of chemical and chemical products* |
| C21 | Manufacture of basic pharmaceutical products and pharmaceutical preparations |
| C22 | Manufacture of rubber and plastic products* |
| C23 | Manufacture of other non-metallic mineral products* |
| C24 | Manufacture of basic metals* |
| C25 | Manufacture of fabricated metal products, except machinery and equipment* |
| C26 | Manufacture of computer, electronic, and optical products* |
| C27 | Manufacture of electrical equipment* |
| C28 | Manufacture of machinery and equipment except electrical* |
| C29, C30 | Manufacture of transport equipment* |
| C31 | Manufacture of furniture |
| C32, C33 | Other manufacturing |
* Industry divisions categorized further into industry groups
See more at the Producer Price Survey (PPS) main page.
