Year-on-Year
The Producer Price Index (PPI) for manufacturing continued to exhibit an upward trend at an annual increase of 7.4 percent in September 2022. This growth rate is faster than the annual increment of 7.1 percent posted in the previous month. In September 2021, the PPI slightly rose at an annual rate of 0.1 percent. (Table A and 1)
The upturn in the PPI in September 2022 can be attributed to the annual expansions in the indices of 19 industry divisions led by manufacture of coke and refined petroleum products, which recorded an annual growth rate of 15.2 percent.
On the other hand, there were three industry divisions that exhibited annual decrements, namely: manufacture of machinery and equipment except electrical, printing and reproduction of recorded media, and manufacture of wood, bamboo, cane, rattan articles and related products with annual growth rates of -2.0 percent, -0.6 percent, and -0.6 percent, respectively.
Month-on-Month
Month-on-month, the PPI for manufacturing recovered in September 2022 posting a monthly growth rate of 0.8 percent from a -0.3 percent monthly drop in August 2022. In September 2021, the PPI recorded a monthly increment of 0.6 percent. (Table A and 1)
Fifteen among the 22 industry divisions registered positive monthly growth rates in August 2022, which was led by the manufacture of computer, electronic and optical products with a monthly increase of 3.2 percent.
On the other hand, the PPI of six industry divisions exhibited monthly downturns with manufacture of chemical and chemical products and manufacture of textiles posting the largest monthly decreases of -0.3 percent each. Meanwhile, the monthly growth rate of manufacture of leather and related products, including footwear is at zero percent. (Tables A-2 and 1)
Manufacture of food products
The PPI for manufacture of food products posted the same annual growth rate of 8.8 percent in September 2022 and in August 2022.
The increase in September 2022 PPI was attributed by the annual increments in the PPI of seven industry groups under the manufacture of food products. Moreover, double-digit upturns were registered in the three industry groups, namely: manufacture of grain mill products, starches and starch products (17.8%), manufacture of prepared animal feeds (15.6%), and processing and preserving of fish, crustaceans and mollusks (13.8%). (Tables 1 and 2)
On a month-on-month basis, the PPI for the manufacture of food products exhibited an upward trend with a monthly growth rate of 0.1 percent in September 2022. In August 2022, it decreased by -0.5 percent. Five of the eight industry groups contributed to the increase of the PPI for the manufacture of food products. This was led by the processing and preserving of fish, crustaceans and mollusks posting a monthly growth rate of 2.9 percent. (Tables 1 and 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.