Producers Price Index : April 2020

Reference Number: 2020-085
Release Date: 29 May 2020

 

 

Table A  Year-on-Year and Month-on-Month Growth Rates of Producer Price Index
for Total Manufacturing
April 2020, March 2020 and April 2019

Category

April
2020
March
2020
April
2019

Producer Price Index (2000=100)

131.6

132.4 r

137.0

Year-on-Year Growth (%)

-3.9

-5.1 r

2.5

Month-on-Month Growth (%)

-0.6

-0.03 r

-1.9
r -revised
 

Year-on-Year

The Producer Price Index (PPI, 2000=100) for manufacturing remained at downtrend with an annual rate of -3.9 percent in April 2020. In the previous month, it dropped at a faster rate of 5.1 percent. On the contrary, the PPI in April 2019 increased at an annual rate of 2.5 percent.

The decline in PPI in April 2020 can be attributed to the contractions in the indices of 15 industry groups, four of which posted double-digit annual decrements as follows:

petroleum products (-20.4%),
leather products (-15.6%),
fabricated metal products (-11.6%), and
footwear and wearing apparel (-10.9%).

On the other hand, furniture and fixtures, which rose by 20.0 percent, led the five industry groups that posted annual increments. Refer to Tables 1 and A-1.

 

Month-on-Month

On a month-on-month movement, the PPI slightly decreased at a monthly rate of 0.6 percent in April 2020, following a slower drop of 0.03 percent in March 2020. In April last year, PPI posted a sharper decline at a monthly rate of 1.9 percent.

Eleven industry groups posted negative monthly growth rates in April 2020 with petroleum products posting the highest monthly decrement of 11.4 percent. Furthermore, PPI for five industry groups posted monthly increments while the rest had zero monthly growth rates. (Tables 1 and A-2)

 

TABLE A-1  Year-on-Year Growth Rate (%) of Producer Price Index
by Industry Group
March 2020 and April 2020
(2000=100)
 

INDUSTRY GROUP

April 2020
March 2020

Tobacco Products

4.8

4.8r

Furniture & Fixtures

20.0

20.4r

Beverages

1.9

2.9r

Food Manufacturing

0.3

-0.1r

Printing

1.8

1.8

Petroleum Products

-20.4

-10.2r

Transport Equipment

-4.2

-12.0r

Electrical Machinery

-2.9

-4.2r

Basic Metals

-6.2

-6.9r

Chemical Products

-4.7

-5.0r

Fabricated Metal Products

-11.6

-12.0r

Footwear & Wearing Apparel

-10.9

-10.4r

Machinery Except Electrical

-2.1

-2.5r

Paper & Paper Products

-5.5

-5.2r

Non-Metallic Mineral Products

-2.0

-3.4r

Rubber & Plastic Products

-2.0

-2.3r

Wood & Wood Products

-7.6

-12.1r

Leather Products

-15.6

-14.5r

Miscellaneous Manufactures

-0.8

-1.6r

Textiles

-0.6

-6.8r

r - revised
Note:
1) Industry groups are ranked according to their contributions to the overall growth rate
 
 
 
TABLE A-2  Month-on-month Growth Rate (%) of Producer Price Index
by Industry Group
March 2020 and April 2020
(2000=100)
 

MAJOR INDUSTRY GROUP

April 2020
March 2020

Food Manufacturing

0.2

0.2r

Transport Equipment

0.3

0.2r

Non-Metallic Mineral Products

0.4

-0.2r

Machinery Except Electrical

0.1

b/r

Fabricated Metal Products

0.2

b/r

Leather Products

0.0

0.0r

Tobacco Products

0.0

a/r

Printing

0.0

0.0

Textiles

0.0

-1.0r

Petroleum Products

-11.4

-5.6r

Electrical Machinery

-1.0

0.7r

Basic Metals

-0.9

-0.8r

Chemical Products

-0.4

0.7r

Paper & Paper Products

-0.7

-0.9r

Beverages

-0.1

0.1r

Rubber & Plastic Products

-0.2

-0.2r

Furniture & Fixtures

-0.5

0.1r

Wood & Wood Products

-0.2

-0.2r

Footwear & Wearing Apparel

-0.1

b/r

Miscellaneous Manufactures

b/

0.2r

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

 

 

 

(Sgd.) 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 from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
 
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 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 these are applied at the beginning of each survey year.
 
For the 2020 PPI, the weights of the major industry groups and industry sub-classes were computed based on the final results of the 2017 ASPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Industry Class
 
 
Industry Class
 
 
 
 
Industry
 
 

Note:

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

 

  • 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.

 
  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but no received response during the release date. Results are revised accordingly when the actual data are received and these revisions are reflected in the next release.

 

  • Industry Coverage

Starting with the 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 major industry groupings of the 2020 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

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

* - Industry groups categorized into industry classes

 

 

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

 

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Contact Information

Technical Inquiries:

Price Statistics Division
Economic Sector Statistics Service
+632 8376 1959