Producer Price Survey : March 2017

Reference Number: 2017-047
Release Date: 05 May 2017

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
March 2017, February 2017 and March 2016

TOTAL MANUFACTURING

March
2017
February
2017
March
2016

Producer Price Index (2000=100)

135.9

136.6 r

134.4

          Year-on-Year Growth

1.1

  0.5 r

- 6.9

         Month-on-Month Growth

- 0.5

 0.2 r

- 1.0
r -revised
 
  • Producer Price Index increases in March 2017

The Producer Price Index (PPI, 2000=100) for manufacturing moved up by 1.1 percent in March 2017 from the negative growth of 6.9 percent during the same period of previous year. Petroleum products (19.7%), led the nine sectors that pulled-up the PPI. On the other hand, fabricated metal products (-34.0%) led the other 11 major sectors that posted decreases. Refer to Tables 1 and A-1.

On a monthly basis, PPI went down by 0.5 percent in March 2017 from the previous month’s rate of 0.2 percent. This was due to the decrements posted by 13 major sectors led by petroleum products (-2.9%). Moreover, the decreases reflected by the heavily weighted sectors also contributed to the negative performance of the overall monthly PPI. These were: machinery except electrical (-1.7%), food manufacturing (-0.6%) and electrical machinery (-0.3%). Meanwhile, six sectors posted increases while one sector reflected a flat growth. Refer to Tables 1 and A-2.

 

 
 
 
 
TABLE A-1   Producer Price Index, February 2017 and March 2017:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

March 2017
February 2017
(revised)

Petroleum Products

19.7

31.5

Transport Equipment

2.5

1.3

Basic Metals 

1.6

-1.2

Miscellaneous Manufactures

4.6

5.1

Footwear and Wearing Apparel

3.0

1.7

Printing

3.1

2.7

Paper and Paper Products

1.0

-1.0

Wood and Wood Products  

1.0

1.4

Tobacco Products

0.1

0.1

 
 

Losers

Year-on-Year Growth (percent)

March 2017
February 2017
(revised)

Fabricated Metal Products

-34.0

-34.5

Electrical Machinery

-1.6

-3.4

Non-Metallic Mineral Products            

-5.7

-6.1

Rubber and Plastic Products

-5.1

-4.4

Food  Manufacturing   

-0.6

0.1

Machinery  except  Electrical  

-1.4

-4.6

Chemical  Products         

-0.9

-1.1

Leather Products

-12.8

-12.1

Furniture and fixtures       

-6.0

-8.1

Textiles

-4.7

-4.2

Beverages

-0.2

0.5

 
 
 
TABLE A-2   Producer Price Index, February 2017 – March 2017:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

March 2017
February 2017
(revised)

Transport Equipment

1.2

-0.8

Basic Metals

1.3

0.6

Paper and Paper Products

1.6

-0.2

Chemical Products

0.1

0.0

Footwear and Wearing Apparel     

0.3

0.0

Printing

0.3

0.5

Tobacco Products

0.0

0.0

 
 

Losers

Month-on-Month Growth (percent)

March 2017
February 2017
(revised)

Petroleum Products      

-2.9

0.5

Machinery except Electrical

-1.7

0.8

Food Manufacturing

-0.6

-1.4

Electrical Machinery  

-0.3

0.9

Rubber and Plastic Products 

-1.5

0.2

Beverages

-0.8

0.1

Non-Metallic Mineral Products

-1.2

0.4

Fabricated Metal Products

-0.8

-0.2

Furniture and  Fixtures 

-1.4

2.5

Leather Products

-2.1

0.9

Wood and Wood Products

-0.7

0.3

Miscellaneous Manufactures

-0.1

-0.5

Textiles                     

b/

b/

 
 
 
Notes:
b/ - Less than 0.1 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 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.
 
 

 

  • Response Rate

The response rate for March 2017 is 70.5 percent, which corresponds to the retrieval of 538 establishments’ reports out of the 754 samples for the survey.  Refer to Tables 2 and B.

 

Table B Response Rates For Total Manufacturing
(In Percent)

March 2017

February 2017
(revised)
70.5
81.7 r
r-revised

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.

   

 

 

FOR THE NATIONAL STATISTICIAN:
 
 
ESTELA T. DE GUZMAN
(Deputy National Statistician, CRCSO)
Officer-in-Charge
 

 

 

 
 
 
 
 
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 2017 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2013 CPBI 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:
 
 
 
           Note:
 
           Starting with January 2017 PPI, a link factor was used to adjust weight effects and measure the correct price change. The weights are adjusted using the 2013 ASPBI. 
            

 

  • 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 2016 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

 

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959