Producer Price Survey : February 2017

Reference Number: 

2017-035

Release Date: 

Wednesday, April 5, 2017

 

 

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

TOTAL MANUFACTURING

February
2017
January
2017
February
2016

Producer Price Index (2000=100)

138.9

138.3 r

135.9

          Year-on-Year Growth

2.2

 2.1 r

- 5.6

         Month-on-Month Growth

0.4

 2.2 r

0.2
r -revised
 
  • Producer Price Index accelerates in February 2017

The Producer Price Index (PPI, 2000=100) for manufacturing advanced by 2.2 percent in February 2017 from the negative growth of 5.6 percent during the same period of previous year. The uptrend was supported mainly by the increases in nine out of 20 sectors, including the significant increment manifested by the heavily-weighted petroleum products (31.5%). On the contrary, furniture and fixtures (-11.6%) led the 10 sectors that posted decreases. Refer to Tables 1 and A-1.

On a monthly basis, PPI increased at a slower rate of 0.4 percent in February 2017 from the previous month’s rate of 2.2 percent. This was brought about by the increments posted by 13 sectors led by furniture and fixtures (2.3%). Meanwhile, three sectors posted decreases led by food manufacturing (-1.3%) while four sectors reflected  flat growths. Refer to Tables 1 and A-2.

 

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

Gainers

Year-on-Year Growth (percent)

February 2017
January 2017
(revised)

Petroleum Products

31.5

27.7

Machinery Except Electrical

3.9

3.3

Transport Equipment

2.1

1.6

Food Manufacturing

1.1

2.9

Miscellaneous Manufactures

4.8

4.3

Beverages

0.5

0.5

Printing

2.7

2.2

Footwear and Wearing Apparel

0.6 -2.7

Tobacco Products

0.1 0.1

Wood and Wood Products

0.0

0.4

 
 

Losers

Year-on-Year Growth (percent)

February 2017
January 2017
(revised)

Electrical Machinery

-3.3

-3.4

Fabricated Metal Products

-11.5

-9.2

Non-Metallic MIneral Products

-6.0

-7.5

Rubber and Plastic Products

-4.3

-4.9

Basic Metals

-1.6

-2.0

Chemical Products

-1.1

-1.5

Furniture and Fixtures

-11.6

-13.2

Textlles

-4.2

-4.5

Paper and Paper Products

-0.9

-0.8

Leather Products

-5.0 -5.1
 
 
 
TABLE A-2   Producer Price Index, January 2017 – February 2017:
(2000=100)
 

Gainers

Month-on-Month Growth (percent)

February 2017
January 2017
(revised)

Electrical Machinery

1.6

-1.2

Petroleum Products

0.5

5.9

Machinery Except Electrical

0.7

0.4

Basic Metals

0.6

1.1

Non-Metallic Mineral Products 

0.4

-2.8

Furniture and Fixtures

2.3

1.6

Miscellaneous Manufactures

0.6

0.3

Rubber and Plastic Products

0.2

-4.6

Leather Products

1.8

1.5

Footwear and Wearing Apparel

0.3

0.4

Beverages

a/

-1.6

Printing

0.5 1.1

Chemical Products

0.0 0.1

Transport Equipment

0.0 1.4

Textiles

a/ -0.6

Wood and Wood Products

0.0 0.3

Tobacco Products

0.0 0.0
 

Losers

Month-on-Month Growth (percent)

February 2017
January 2017
(revised)

Food Manufacturing

-1.3

0.8

Fabricated Metal Products

-0.9

-10.1

Paper and Paper Products

-0.2

2.3

 
 
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.
 
 

 

  • Response Rate

The response rate for February 2017 is 70.6 percent, which corresponds to the retrieval of 532 establishments’ reports out of the 745 samples for the survey.  Refer to Tables 2 and B.

Table B Response Rates For Total Manufacturing
(In Percent)

February 2017

January 2017
(revised)
70.6
84.0 r
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.

   

 

 

FOR THE NATIONAL STATISTICIAN:
 
 
ROMEO S. RECIDE
(Deputy National Statistician, SSO)
Officer-in-Charge
 

 

 

 
 

 
 
 
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 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 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 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

 

 

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