Producer Price Survey : July 2016

Reference Number: 2016-134
Release Date: 06 September 2016

 

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

TOTAL MANUFACTURING

July
2016
June
2016
July
2015

Producer Price Index (2000=100)

133.5

134.5 r

139.2

          Year-on-Year Growth

- 4.1

 - 4.2 r

- 6.7

         Month-on-Month Growth

-0.8

0.0 r

- 0.8
r -revised
 
  • Producer Price Index declines in July 2016

The Producer Price Index (PPI, 2000=100) for manufacturing decreased at a slower rate of 4.1 percent in July 2016 compared with a negative 6.7 percent during the same period last year. The slowdown can be attributed to the double-digit decrements posted by the following major sectors: furniture and fixtures (-23.1%), machinery except electrical (-16.4%) and petroleum products (-11.8%). On the other hand, miscellaneous manufactures (5.9%) continued to lead the eight major sectors that posted increases. Refer to Tables 1 and A-1.

On a monthly basis, the PPI likewise went down by 0.8 percent in July from a flat rate posted a month earlier. This was influenced by the decreases observed in ten major sectors including the two heavily-weighted sectors namely: petroleum products (-2.5%) and electrical machinery (-1.9%). Furthermore, five sectors posted flat growths and five sectors reflected increases. Refer to Tables 1 and A-2.

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

Gainers

Year-on-Year Growth (percent)

July 2016
June 2016
(revised)

Food Manufacturing

1.4

1.4

Beverages

4.4

4.4

Electrical Machinery

0.5

0.2

Miscellaneous Manufactures

5.9

6.2

Non-Metallic Mineral Products

2.1

2.7

Fabricated Metal Products

0.4

0.3

Tobacco Products

0.1

0.4

Textiles

0.2

0.7

 
 

Losers

Year-on-Year Growth (percent)

July 2016
June 2016
(revised)

Petroleum Products

-11.8

-13.1

Machinery except Electrical

-16.4

-15.4

Basic Metals

-4.4

-9.6

Transport Equipment

-1.6

1.2

Furniture and Fixtures

-23.1

-23.4

Footwear and Wearing Apparel

-4.5

-2.8

Rubber and Plastic Products

-2.0

-4.8

Chemical Products

-0.9

-0.9

Leather Products

-5.4

-5.1

Paper and Paper Products

-0.8

0.6

Wood and Wood Products

-1.0

-1.0

Printing

-0.7

-0.6

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

Gainers

Month-on-Month Growth (percent)

July 2016
June 2016
(revised)

Basic Metals

0.4

0.8

Fabricated Metal Products

0.4

0.6

Food Manufacturing

0.0

0.1

Chemical Products

0.0

-0.8

Miscellaneous Manufactures

0.1

0.5

Rubber and Plastic Products

a/

0.2

Textiles

a/

a/

Printing

0.0

0.0

Beverages

0.0

0.0

Wood and Wood Products

0.0

0.9

 
 

Losers

Month-on-Month Growth (percent)

July 2016
June 2016
(revised)

Tobacco Products

-0.3

0.1

Leather Products

-0.2

1.8

Furniture and Fixtures

-0.4

-7.9

Paper and Paper Products

-0.3

0.1

Footwear and Wearing Apparel

-0.4

0.4

Non-Metallic Mineral Products

-0.4

1.0

Machinery except Electrical

-0.3

0.9

Transport Equipment

-1.0

0.2

Petroleum Products

-2.5

-0.5

Electrical Machinery

-1.9

1.9

 
 
 
 
 
Notes:
a/ - Less than 0.1 percent increase
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 July 2016 is 81.4 percent, which corresponds to the retrieval of 613 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)

July 2016

June 2016
(revised)

81.4

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.

   

 

 

For the National Statistician:
 
 
 
 
 
(Sgd.) ESTELA T. DE GUZMAN
(Deputy National Statistician, CRCSO)
Officer-in-Charge
 
 
 
 
 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959