Year-on-Year
The Producer Price Index (PPI, 2000=100) for manufacturing continued to move downward as its annual rate went down further by -3.4 percent in November 2020. In the previous month, it dropped by -3.3 percent, while in November 2019, it increased at an annual rate of 0.4 percent.
The decline in the PPI in November 2020 can be attributed to the decrease in the indices of 13 industry groups led by petroleum products, which registered an annual growth rate of -10.8 percent. On the other hand, furniture and fixtures, which increased by 18.2 percent, led the seven industry groups that posted annual positive growth rates during the month. (Tables A-1, and 1)
Month-on-Month
Likewise, on a month-to-month basis, the PPI for manufacturing continued to drop by -0.4 percent in November 2020 from a decline of -0.1 percent in October 2020. In November 2019, its monthly rate was recorded at -0.3 percent.
Twelve industry groups posted negative monthly growth rates in November 2020 with electrical machinery registering the highest monthly decrease of -1.1 percent. On the other hand, PPI for five industry groups had positive monthly increments led by paper and paper products at 0.6 percent. The indices for the three industry groups such as tobacco products, printing, and beverages exhibited zero growth rate during the month. (Tables A-2 and 1)
DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
- Introduction
- Method of Index Computation
Note:
Starting with the January 2017 PPI, a link factor has been used to adjust weight effects to measure the correct price change.
- Computation of Growth Rates
Year-on-year growth rates are computed by dividing the current month index by the index in the same month 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.
- Imputation and Revision
Imputation is done for sample establishments that are in operation during the reference period but 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, 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 major industry groupings of the 2020 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 |
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 |
* - Industry groups categorized into industry classes
See more at the Producer Price Survey (PPS) main page.