Producer Price Survey : December 2017

Reference Number: 

2018-025

Release Date: 

Tuesday, February 6, 2018

 

 

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

TOTAL MANUFACTURING

December
2017
November
2017
December
2016

Producer Price Index (2000=100)

131.0

131.4 r

133.3

          Year-on-Year Growth

 -1.8

 -1.1

- 4.2

         Month-on-Month Growth

  -0.3

  -0.8

0.3
r -revised
 
  • Producer Price Index decreases at a slower rate in December 2017 

The Producer Price Index (PPI, 2000=100) for total manufacturing moved downward at a slower rate of 1.8 percent in December 2017 from a negative 4.2 percent during the same period of previous year. This can be attributed to the significant decline of three major sectors namely: fabricated metal products (-29.9 percent), leather products (-21.2 percent) and furniture and fixtures (-19.4 percent), together with other 11 major sectors that posted negative growth. Meanwhile, six major sectors posted positive growth led by petroleum products with 2.9 percent. Refer to Tables 1 and A-1.

Month by month, PPI slightly descend by 0.3 percent from the previous month’s rate of negative 0.8 percent with 14 major sectors recording negative growths. Three major sectors posted increases while three major sectors reflected a flat growth. Refer to Tables 1 and A-2.

 

 

TABLE A-1   Producer Price Index, November 2017 and December 2017:

(2000=100)

Gainers

Year-on-Year Growth (percent)

December 2017
November 2017
(revised)

Petroleum Products

2.9

8.9

Basic Metals

2.8

3.9

Electrical Machinery

0.8

0.5

Tobacco Products

1.9

1.9

Printing

2.3

2.4

Textiles

0.7

0.7

 

 

Losers  

Year-on-Year Growth (percent)

December 2017
November 2017
(revised)

Fabricated Metal Products

-29.9

-28.7

Food Manufacturing

-2.0

-1.8

Transport Equipment

-2.2

-2.0

Non- Metallic Mineral Products

-5.2

-5.8

Chemical Products (excludes plastic)

-2.4

-1.1

Rubber and plastic products

-3.5

-3.6

Furniture & Fixtures

-19.4

-17.5

Machinery Except Electrical

-1.4

-0.5

Beverages

-1.8

-1.8

Leather Products

-21.2

-22.1

Footwear & Wearing Apparel

-3.8

-1.9

Paper & Paper Products

-0.2

-0.6

Wood & Wood Products

-0.3

-0.5

Miscellaneous Manufactures

b/

-0.4

 

TABLE A-2   Producer Price Index, November 2017 – December 2017:

(2000=100)

Gainers

Month-on-Month Growth (percent)

December 2017
November 2017
(revised)

Food Manufacturing

0.2

-0.9

Petroleum Products

0.1

0.7

Rubber and plastic products

0.3

-0.1

Wood & Wood Products

0.0

0.0

Tobacco Products

0.0

0.0

Beverages

0.0

0.0

 

 

Losers

Month-on-Month Growth (percent)

December 2017
November 2017
(revised)

Chemical Products (excludes plastic)

-1.1

0.2

Electrical Machinery

-0.3

-1.1

Basic Metals

-0.8

-0.5

Machinery Except Electrical

-0.4

-1.3

Footwear & Wearing Apparel

-2.1

-0.4

Paper & Paper Products

-1.4

0.7

Fabricated Metal Products

-1.0

-0.8

Transport Equipment

-0.1

-1.3

Miscellaneous Manufactures

-0.4

-1.2

Furniture & Fixtures

-0.7

-1.7

Non- Metallic Mineral Products

-0.1

-0.1

Leather Products

-0.8

0.5

Textiles

b/

-0.1

Printing

b/

-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 the same month index of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month index by the previous month index less 1.
 
  • Response Rate

The response rate for December 2017 is 85.4 percent, which corresponds to the retrieval of 641 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)
December  2017
November  2017
(revised)

85.4

90.4r

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 Index (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 based from the results of the 2013 ASPBI for Manufacturing Establishments with total employment of 20 and over, which is the latest survey results.

The formulas in the computation of the of the PPI are as follows

 

 

Note:

Starting with the January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. The weights are adjusted using the 2013 ASPBI

  • Industry Coverage

Starting with the January 2013 reference month, 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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