Producer Price Survey : June 2016

Reference Number: 2016-118
Release Date: 05 August 2016

 

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

TOTAL MANUFACTURING

June
2016
May
2016
June
2015

Producer Price Index (2000=100)

135.5

134.2r

140.4

          Year-on-Year Growth

-3.5

 -4.3r

-6.3

         Month-on-Month Growth

1.0

-0.6r

0.1
r -revised
 
  • Producer Price Index post decreases in June 2016

The Producer Price Index (PPI, 2000=100) for manufacturing slowly went down by 3.5 percent in June 2016 compared with a negative 6.3 percent during the same period last year. The downtrend was due to the double-digit decreases posted by four major sectors namely: machinery except electrical (-15.4%), furniture and fixtures (-15.4%), petroleum products (-10.8%) and basic metals (-10.3%).  On the other hand, miscellaneous manufactures (6.2%) led the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI went up by 1.0 percent from negative 0.6 percent in May 2016. This was brought about by the increases recorded by 16 out of the 20 major sectors. Moreover, the increase in prices of the heavily-weighted electrical machinery (2.2%) and petroleum products (2.1%) pulled up the overall monthly PPI. Furthermore, three sectors posted flat growths and one sector reflected decrease. Refer to Tables 1 and A-2.

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

Gainers

Year-on-Year Growth (percent)

June 2016
May 2016
(revised)

Food Manufacturing

1.4

1.6

Beverages

4.4

4.4

Transport Equipment

1.2

-0.3

Miscellaneous Manufactures

6.2

6.5

Non-Metallic Mineral Products

2.0

1.9

Fabricated Metal Products

1.4

1.4

Paper and Paper Products

1.8

1.7

Textiles

0.8

1.1

Tobacco Products

0.0

0.0

 
 

Losers

Year-on-Year Growth (percent)

June 2016
May 2016
(revised)

Petroleum Products

-10.8

-10.4

Machinery except Electrical

-15.4

-18.2

Basic Metals

-10.3

-12.3

Rubber and Plastic Products

-4.8

-4.6

Electrical Machinery

-0.5

-0.6

Furniture and Fixtures

-15.4

-14.9

Chemical Products

-0.9

-0.4

Footwear and Wearing Apparel

-3.0

-10.0

Wood and Wood Products

-1.0

-0.9

Leather Products

-2.9

-6.5

Printing

-0.6

-0.3

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

Gainers

Month-on-Month Growth (percent)

June 2016
May 2016
(revised)

Electrical Machinery

2.2

0.0

Petroleum Products

2.1

5.5

Machinery except Electrical

0.9

-0.2

Food Manufacturing

0.2

0.2

Transport Equipment

0.2

0.5

Leather Products

4.1

-3.3

Non-Metallic Mineral Products

0.3

-1.8

Miscellaneous Manufactures

0.5

-0.1

Furniture and Fixtures

1.6

-11.3

Fabricated Metal Products

0.4

-0.2

Wood and Wood Products

0.9

0.1

Footwear and Wearing Apparel

0.4

0.3

Basic Metals

0.1

-1.1

Rubber and Plastic Products

0.2

0.2

Paper and Paper Products

0.1

-0.7

Textiles

a/

b/

Beverages

0.0

0.0

Printing

0.0

0.0

Tobacco Products

0.0

0.0

 
 

Losers

Month-on-Month Growth (percent)

June 2016
May 2016
(revised)

Chemical Products

-0.8

0.1

 
 
 
Notes:
a/ - Less than 0.1 percent increase
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.
 
 
 
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 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

 

  • Response Rate

The response rate for June 2016 is 83.4 percent, which corresponds to the retrieval of 628 establishments’ reports out of the 753 samples for the survey.  Refer to Tables 2 and B.

Table B Response Rates For Total Manufacturing
(In Percent)

June 2016

May 2016
(revised)

83.4

90.0r

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.

   

 
 
 
 
LISA GRACE S. BERSALES, Ph.D.
National Statistician and Civil Registrar General

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959