Month-on-Month

Month-on-month, the PPI for manufacturing posted a slower upturn in July 2022 with a 0.8 percent growth rate compared with the 1.1 percent increase in June 2022. In July 2021, the PPI recorded a monthly increment of 0.5 percent.  (Table A and 1)

Fifteen (15) industry divisions registered positive monthly growth rates in July 2022 led by manufacture of transport equipment recording a monthly increase of 2.7 percent.

On the other hand, the PPI of six industry divisions exhibited monthly decreases with manufacture of coke and refined petroleum products posting the highest monthly drop of -2.2 percent. Meanwhile, the monthly growth rate of manufacture of leather and related products, including footwear was at 0.0 percent.  (Tables A-2 and 1)

 

 

 

 

 

 

Manufacture of food products

The PPI for the manufacture of food products increased further after recording a faster annual rate of 9.7 percent in July 2022, compared with the previous month’s annual rate of 9.4 percent. This increment in July 2022 was attributed by the annual increases in the PPI of all eight industry groups under the manufacture of food products. Moreover, double-digit upturns were registered in four of the eight industry groups, namely: processing and preserving of fish, crustaceans and mollusks (21.3%), manufacture of grain mill products, starches and starch products (18.3%), manufacture of prepared animal feeds (15.6%), and manufacture of vegetable and animal oils and fats (10.1%).  (Tables 1 and 2)

On a month-on-month basis, the PPI for the manufacture of food products likewise exhibited an upward trend with a monthly growth rate of 0.9 percent in July 2022. This increase is faster than the monthly rate registered in June 2022 of 0.7 percent. Contributory to the uptrend of PPI for the manufacture of food products in July 2022 were the expansions posted by seven out of eight of its industry groups. The top three industry groups were processing and preserving of fish, crustaceans and mollusks (4.1%), manufacture of prepared animal feeds (2.1%), and processing and preserving of fruits and vegetables (1.0%).  (Tables 1 and 2)

 

 

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 

 

 

 

 

Starting with the January 2021 reference period, the Producer Price Index (PPI) for Manufacturing uses the 2018 as base year, from the previously used 2000 base period. The PPI for Manufacturing measures the changes in the producer price of key commodities produced by the Manufacturing sector. One of its uses is as a deflator to derive the Volume of Production Index (VoPI) and Volume of Net Sales Index (VoNSI).

 

The PPI for Manufacturing is generated from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.

 

The PPI utilizes the chained Paasche-type method of index computation where the base year is normalized. The weights are computed from the value of production from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI), whichever is the more recent. The weights are updated as soon as new results of the CPBI or ASPBI are available and these are applied at the beginning of each survey year.

 

For the 2022 PPI, the base year used is 2018 and the weights of the industry divisions and industry groups were computed based on the results of the 2019 ASPBI for Manufacturing establishments with total employment of 20 and over.

 

The computation of PPI adopts the following formula:

 

 

 

 

 

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.

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