Producer Price Survey : October 2017

Reference Number: 

2017-147

Release Date: 

Tuesday, December 5, 2017

 

 

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

TOTAL MANUFACTURING

October
2017
September
2017
October
2016

Producer Price Index (2000=100)

132.8

132.3 r

132.4

          Year-on-Year Growth

 0.3

 - 0.6

- 4.8

         Month-on-Month Growth

  0.4

  - 0.3

- 0.6
r -revised
 
  • Producer Price Index posts slight increment in October 2017

The Producer Price Index (PPI, 2000=100) for manufacturing slightly increased at a rate of 0.3 percent in October 2017 from negative growth of 4.8 percent during the same period of previous year. The upturn can be attributed to the increases of eight out of 20 major sectors including the increment reflected by the heavily-weighted petroleum products with 7.8 percent. On the other hand, fabricated metal products (-26.0 percent) and leather products (-22.6 percent) led the 12 sectors that posted decreases. Refer to Tables 1 and A-1.

On a monthly basis, PPI likewise went up by 0.4 percent from previous month’s rate of negative 0.3 percent with 14 sectors posting a positive growth, led by transport equipment and furniture and fixtures, both with 0.9 percent. Meanwhile, only three sectors posted decreases while three sectors reflected flat growth. Refer to Tables 1 and A-2.

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

Gainers

Year-on-Year Growth (percent)

October 2017
September  2017
(revised)

Petroleum Products

7.8

12.9

Electrical Machinery

4.1

0.8

Basic Metals

4.5

3.1

Transport Equipment

0.5

-0.1

Miscellaneous Manufactures

2.3

3.3

Tobacco Products

1.9

1.9

Printing

2.6

2.6

Textiles

1.1

1.1

 
 

Losers

Year-on-Year Growth (percent)

October 2017
September  2017
(revised)

Fabricated Metal Products

-26.0

-45.3

Non- Metallic Mineral Products

-6.0

-6.2

Food Manufacturing

-0.7

-0.4

Chemical Products (excludes plastic)

-1.8

-1.9

Rubber and plastic products

-2.9

-3.5

Furniture & Fixtures

-16.4

-16.3

Beverages

-1.8

-1.8

Leather Products

-22.6

-22.7

Machinery except Electrical

-0.8

2.4

Paper & Paper Products

-1.6

-1.7

Footwear & Wearing Apparel

-1.4

0.0

Wood & Wood Products

-0.1

0.1

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

Gainers

Month-on-Month Growth (percent)

October 2017

September  2017
(revised)

Electrical Machinery

0.7

a/

Transport Equipment

0.9

0.6

Machinery except Electrical

0.6

a/

Basic Metals

0.7

-0.9

Chemical Products (excludes plastic)

0.4

-0.8

Petroleum Products

0.2

-1.2

Miscellaneous Manufactures

0.5

-0.1

Rubber and plastic products

0.2

0.1

Furniture & Fixtures

0.9

-0.3

Fabricated Metal Products

0.2

-1.6

Paper & Paper Products

0.2

-2.7

Leather Products

0.4

-9.4

Textiles

0.1

b/

Printing

a/

b/

Wood & Wood Products

0.0

0.0

Tobacco Products

0.0

0.0

Beverages

0.0

0.0

 
 

Losers

Month-on-Month Growth (percent)

October  2017
September  2017
(revised)

Food Manufacturing

-0.5

-0.1

Footwear & Wearing Apparel

-1.1

0.1

Non- Metallic Mineral Products

b/

a/

 
 
 
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 October 2017 is 79.5 percent, which corresponds to the retrieval of 597 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)

October 2017

September 2017
(revised)
79.5
90.7r
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
Assistant Secretary
Deputy National Statistician
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 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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