Producer Price Survey : February 2016

Reference Number: 2016-044
Release Date: 05 April 2016

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index:
February 2016, January 2016 and February 2015

TOTAL MANUFACTURING

February
2016
January
2016
February
2015

Producer Price Index (2000=100)

136.5

137.0 r

143.9 r

          Year-on-Year Growth

-5.2

 -6.2 r

-5.6 r

         Month-on-Month Growth

-0.4

-1.8 r

-1.5 r
r -revised
 
  • Producer Price Index decrease in February 2016

The Producer Price Index (PPI, 2000=100) for manufacturing declined at a slower rate of 5.2 percent in February 2016 compared with negative 5.6 percent during the same month last year. The negative performance of the year-on-year PPI can be attributed to the double-digit decrements of four major sectors, namely: furniture and fixtures (-14.5%), petroleum products (-11.0%), basic metals (-10.9%) and machinery except electrical (-10.5%).  On the other hand, miscellaneous manufactures (3.2%) led the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI likewise dropped by 0.4 percent from negative 1.8 percent a month earlier. Petroleum products (-4.8%) led the nine major sectors that reflected decreases.  Moreover, five major sectors remained flat while six major sectors posted increases. Refer to Tables 1 and A-2.

 
 
 
 
TABLE A-1   Producer Price Index, January 2016 and February 2016:
(2000=100)
 

Gainers

Year-on-Year Growth (percent)

February 2016
January 2016
(revised)

Beverages

2.7

2.6

Non-Metallic Mineral Products

1.8

1.8

Miscellaneous Manufactures

3.2

3.4

Fabricated Metal Products

2.0

0.2

Paper and Paper Products

2.4

2.7

Leather Products

1.6

1.7

Textiles

0.6

3.5

Printing

0.3

-1.6

Tobacco Products

0.0

0.2

 

Losers

Year-on-Year Growth (percent)

February 2016
January 2016
(revised)

Electrical Machinery

-6.9

-12.1

Petroleum Products

-11.0

0.2

Machinery except Electrical

-10.5

-11.6

Basic Metals

-10.9

-12.2

Transport Equipment

-2.4

-2.5

Rubber and Plastic Products

-4.2

-5.2

Furniture and fixtures

-14.5

-15.4

Chemical Products

-1.1

-0.7

Wood and Wood Products

-8.1

-14.6

Food Manufacturing

-0.2

-1.0

Footwear and Wearing Apparel

-6.9

-0.6

 
 
TABLE A-2   Producer Price Index, January 2016 – February 2016:
 (2000=100)
 

Gainers

Month-on-Month Growth (percent)

February 2016
January 2016
(revised)

Food Manufacturing

0.3

-0.6

Basic Metals

0.6

-0.9

Fabricated Metal Products

1.4

-1.6

Rubber and Plastic Products

0.1

-0.3

Beverages

0.0

2.6

Wood and Wood Products

0.2

0.3

Furniture and Fixtures

0.2

-6.0

Tobacco Products

0.0

0.0

Miscellaneous Manufactures

0.0

0.9

Transport Equipment

0.0

0.3

Printing

0.0

0.0

 

Losers

Month-on-Month Growth (percent)

February 2016
January 2016
(revised)

Petroleum Products

-4.8

-5.1

Electrical Machinery

-0.4

0.8

Machinery except Electrical

-0.4

-12.9

Non-Metallic Mineral Products

-0.6

1.3

Chemical Products

-0.2

0.7

Footwear and Wearing Apparel

-0.3

0.8

Paper and Paper Products

-0.1

0.7

Textiles

-0.3

-0.1

Leather Products

-0.1

0.3

 
Notes:
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.
 
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 2015 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2012 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:
 
 

 

  • Industry Coverage

Starting with January 2013 reference month, the PPI utilizes the 2009 Philippine Standard Industry Classification (PSIC) to classify sectors and industries. Selected industry classes of the 2009 PSIC were grouped to form the 20 industry groupings of the 2014 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

 

  • Response Rate

The response rate for February 2016 is 70.0 percent, which corresponds to the retrieval of 524 establishments’ reports out of the 749 samples for the survey.  Refer to Table B.

Table B Response Rates For Total Manufacturing
(In Percent)

February 2016

January 2016
(revised)

70.0

74.4r

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:
 
       
 
            JOSIE B. PEREZ
       (Deputy National Statistician)
               Office-in-Charge

 

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
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