Producer Price Index : October 2019

Reference Number: 

2019-199

Release Date: 

Friday, November 29, 2019

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
October 2019, September 2019 and October 2018

TOTAL MANUFACTURING

October
2019
September
2019
October
2018

Producer Price Index (2000=100)

134.2

135.1 r

134.7

Year-on-Year Growth (%)

 -0.4

0.2

1.2

Month-on-Month Growth (%)

-0.7

-0.6

-0.1
r -revised
 
  • Producer Price Index posts slight decrease in October 2019

The Producer Price Index (PPI, 2000=100) for manufacturing decreased at an annual rate of 0.4 percent in October 2019. This annual rate of the PPI was lower than its annual growth rate of 1.2 percent during the same period of the previous year and also lower than the annual growth rate of 0.2 percent in September 2019. The decline can be attributed to the decreases of 13 major industry groups with leather products (-20.2%), footwear and wearing apparel (-11.5%), and fabricated metal products (-11.2%) posting double-digit decrements. On the other hand, furniture and fixtures, which climbed by 59.8 percent, led the six major industry groups that posted annual increases, while printing reflected flat growth. Refer to Tables 1 and A-1.

Month-on-month, the PPI descended by 0.7 percent in October 2019. It also dropped at a monthly rate of 0.6 percent in September 2019 and 0.1 percent in October 2018. Leather products, which declined by 11.4 percent, led the 17 major industry groups that pulled-down the PPI in October 2019. Meanwhile, rubber and plastic products (0.1%) and wood and wood products (0.2%) posted monthly increments while printing still reflected flat growth. Refer to Tables 1 and A-2.

 

Figure 1

 

Figure 2

 

 

TABLE A-1  Year-on-year Growth Rate (%) of Producer Price Index,
September 2019 and October 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

October 2019
September 2019

Gainers

 

 

Furniture & Fixtures

59.8

61.3

Beverages

3.6

3.6

Tobacco Products

3.9

4.0

Rubber & Plastic Products

3.4

3.6

Non-Metallic Mineral Products

1.5

3.9r

Miscellaneous Manufactures

0.9

1.7r

Printing

0.0

0.0

Losers

 

 

Food Manufacturing

-4.9

-5.2r

Petroleum Products

-9.8

-8.2r

Electrical Machinery

-4.3

-4.4

Transport Equipment

-4.6

-3.8r

Chemical Products

-5.9

-5.4r

Basic Metals

-8.0

-7.8r

Machinery Except Electrical

-5.5

-4.7

Fabricated Metal Products

-11.2

-10.6

Footwear & Wearing Apparel

-11.5

-11.1

Leather Products

-20.2

-11.2r

Wood & Wood Products

-8.5

-9.6r

Textiles

-3.7

-0.8r

Paper & Paper Products

-1.3

-1.3

r - revised
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate
 
 
 
TABLE A-2  Month-on-month Growth Rate (%) of Producer Price Index,
September 2019 and October 2019
(2000=100)
 

MAJOR INDUSTRY GROUP

October 2019
September 2019

Gainers

 

 

Rubber & Plastic Products

0.1

b/

Wood & Wood Products

0.2

-2.9r

Printing

0.0

0.0

Losers

 

 

Petroleum Products

-2.2

1.4

Machinery Except Electrical

-1.4

-1.3

Electrical Machinery

-0.6

0.3

Transport Equipment

-0.6

-2.8r

Leather Products

-11.4

-4.3r

Basic Metals

-0.7

-0.2r

Chemical Products

-0.3

0.6r

Food Manufacturing

-0.1

-0.4r

Miscellaneous Manufactures

-1.1

-0.7r

Non-Metallic Mineral Products

-0.4

-0.2

Footwear & Wearing Apparel

-1.0

-0.4r

Fabricated Metal Products

-0.5

a/

Paper & Paper Products

-0.4

1.5

Furniture & Fixtures

-0.9

-1.3

Tobacco Products

-0.1

-0.1

Textiles

-0.5

1.5

Beverages

b/

a/

r - revised
a/ - Less than 0.05 percent increase
b/ - Less than 0.05 percent decrease
Note:
1) Industry groups are ranked according to their contribution to the overall growth rate

 

 

 

CLAIRE DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 
 
 
 
 

 
 
Technical Notes
 
  • Introduction
The Philippine Statistics Authority generates various price indices, one of which is the Producer Price Index (PPI). The PPI is generated through the results of the Producer Price Survey (PPS) which is 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 2019 PPI, the weights of the industry groups and sub-industry classes were computed based from the results of the 2015 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 Class
Industry Class
Industry Class
Industry Class
 

 

  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month index by the index in the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month index by the previous month’s index less 1.

 
 
Note:

Starting with January 2017 PPI, a link factor has been used to adjust weight effects and measure the correct price change. 

           
  • 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 2019 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 industry groups categorized into sub-industry classes

 

 

See more at the Producer Price Survey (PPS) main page.

 

Tags: 

Attachment: