Producer Price Survey : August 2017

Reference Number: 

2017-121

Release Date: 

Thursday, October 5, 2017

 

 

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

TOTAL MANUFACTURING

August
2017
July
2017
August
2016

Producer Price Index (2000=100)

132.8

132.5 r

133.2

          Year-on-Year Growth

- 0.3

 - 0.9

- 4.3

         Month-on-Month Growth

 0.2

 - 0.1

- 0.3
r -revised
 
  • Producer Price Index slightly decreases in August 2017

The Producer Price Index (PPI, 2000=100) for total manufacturing declined at a slow rate of 0.3 percent in August 2017 from a negative 4.3 percent during the same period of previous year. This can be attributed to the significant decline of fabricated metal products by 43.3 percent. Other major sectors that influenced the decline were furniture and fixtures and leather products, which decreased by 14.6 percent and 10.6 percent, respectively. Refer to Tables 1 and A-1.

Month-on-month, it increased by 0.2 percent from the previous month’s rate of negative 0.1 percent with basic metals (4.1%) dominating the increase along with other 12 major sectors. Meanwhile, five major sectors posted decreases while two sectors reflected a flat growth. Refer to Tables 1 and A-2.

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

Gainers

Year-on-Year Growth (percent)

August 2017
July 2017
(revised)

Petroleum Products

14.7

12.5

Basic Metals

6.3

-0.2

Electrical Machinery

1.4

0.2

Miscellaneous Manufactures

5.3

4.1

Tobacco Products

1.9

1.9

Printing

2.7

2.6

Footwear & Wearing Apparel

0.9

0.8

Textiles

1.1

-3.7

 
 

Losers  

Year-on-Year Growth (percent)

August 2017
July 2017
(revised)

Fabricated Metal Products

-43.3

-41.4

Machinery Except Electrical

-2.3

-3.5

Non- Metallic Mineral Products

-4.8

-6.5

Rubber and plastic products

-4.0

-4.3

Beverages

-1.8

-1.6

Furniture & Fixtures

-14.6

-14.8

Transport Equipment

-0.7

1.1

Chemical Products (excludes plastic)

-1.1

-2.2

Food Manufacturing

-0.3

0.2

Leather Products

-10.6

-10.6

Paper & Paper Products

-1.2

-0.4

Wood & Wood Products

-0.1

0.3

 
 
 
 
TABLE A-2   Producer Price Index, July 2017 and August 2017:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

August 2017
July 2017
(revised)

Petroleum Products

2.2

-0.6

Basic Metals

4.1

-1.4

Electrical Machinery

0.4

0.4

Non- Metallic Mineral Products

1.6

-3.1

Machinery Except Electrical

0.7

0.1

Chemical Products (excludes plastic)

0.2

-0.5

Footwear & Wearing Apparel

0.7

a/

Miscellaneous Manufacture

0.6

0.5

Furniture & Fixtures

0.8

0.1

Wood & Wood Products

0.4

0.7

Leather Products

0.3

2.4

Textiles

a/

b/

Printing

a/

a/

Tobacco Products

0.0

0.0

Paper & Paper Products

0.0

-1.2

 
 
 

Losers

Month-on-Month Growth (percent)

August 2017
July 2017
(revised)

Transport Equipment

-1.3

0.3

Fabricated Metal Products

-5.3

0.7

Food Manufacturing

-0.3

0.0

Beverages

-0.2

0.5

Rubber and plastic products

b/

-0.4

 
 
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.
 
 
  • Response Rate

The response rate  for August 2017 is 79.2 percent, which corresponds to the retrieval of 595 establishments’ reports out of the 751 samples for the survey. Refer to Tables 2 and B..

Table B Response Rates For Total Manufacturing
(In Percent)

August 2017

July 2017
(revised)
79.2
91.5r
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.

 
 

 

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

 
 
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 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:
 
 
 
           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 2017 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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