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- Producer Price Index maintains negative rate
Producer Price Index (PPI, 2000=100) for the manufacturing sector slowly decreased to -0.3 percent in July 2012 from -2.2 percent in June, according to the preliminary results of the monthly Producer Price Survey. This was attributed mainly by the double-digit decrements posted by furniture and fixtures (-42.6%). On the other hand, six major sectors posted increases led by rubber and plastic products (7.0%). Refer to Tables 1 and 1-B.
On a monthly basis, PPI slowly improved to -0.8 percent in July 2012 from -2.0 percent in June 2012. Furniture and fixtures led the eleven sectors with a double-digit downtick recorded at -17.9 percent. On the other hand, five sectors posted increases led by petroleum products (4.5%). Furthermore, four major sectors reflected flat growths. Refer to Tables 1 and 1-B.
TECHNICAL NOTES
- Introduction
The National Statistics Office generates various price indices, one of this is the Producer Price Index. (PPI). The PPI is generated through the results of the Producers Price Survey (PPS) conducted nationwide. The survey gathers monthly actual producer prices of selected products included in the market basket.
The PPI is the 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 2012 PPI, the weights of the major sectors and sub-sectors were computed from the results of the 2009 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:
- Industry Coverage
The industry classification of the 2012 PPI utilizes the amended 1994 Philippine Standard Industry classification. There are 20 major sectors covered by the 2012 PPS with three consisting of subsectors.
1994 PSIC CODE INDUSTRY DESCRIPTION 15 except 155 Food Manufacturing 155 Beverages 16 Tobacco products 17 Textiles 18,174 and 192 Footwear and wearing apparel 191 Leather products 20 Wood and wood products 21 Paper and paper products 22 Publishing and printing 23 Petroleum products 24 Chemical products 25 Rubber and plastic products* 26 Non-metallic mineral products* 27 Basic metals* 28 Fabricated metal products 29 and 30 Machinery except electrical 31 and 32 Electrical machinery 34 and 35 Transport equipment 36 Furniture and fixtures 33, 37 and 39 Miscellaneous manufactures Note: * - Major sectors categorized into sub-sectors
(Sgd.) CARMELITA N. ERICTA Administrator
TABLE 1-A. PRODUCER PRICE INDEX, JUNE 2012 - JULY 2012
TABLE 1-B. PRODUCER PRICE INDEX, JUNE 2012 - JULY 2012
Note: Sectors are ranked according to their contribution to the overall 2000-based growth rate. b/ - Less than 0.1 percent decrease 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 Source: National Statistics Office Manila, Philippines
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