·  Producer Price Index maintains single-digit growth

The Producer Price Index (PPI, 2000=100) for the manufacturing industry grew at a slower rate of 7.5 percent in December 2008, compared with the year ago level, according to the preliminary results of the Monthly Producer Price Survey. Price increases were noted in eighteen major sectors with two-digit growth observed in the following: electrical machinery (16.0%), machinery except electrical (15.9%), textiles (13.4%), fabricated metal products (13.3%), beverages (11.4%), and chemical products (10.1%), On the other hand, petroleum products recorded price decrease of 23.6 percent. Refer to Tables 1 and 1-A.

PPI, on a month-on month basis, declined by 1.3 percent in December. This was brought about by the price decreases reported by nine sectors led by petroleum products contributing the highest drop of 10.4 percent. Refer to Tables 1 and 1-B.

·  Response Rate

The response rate for December 2008 is 90.0 percent, which corresponds to the retrieval of 278 sample establishments reports. Refer to Table 3.

·  Technical Notes

The 2008 PPI Release utilizes the amended 1994 PSIC. Rubber and Plastic Products is a new major sector, consisting of two sub-sectors, namely: Rubber Products and Plastic Products . Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

Previously with seven sub-sectors, the major sector of Chemical Products now has six sub-sectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations and Miscellaneous Chemicals.

The corresponding weights of the above sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Weights for the 2008 PPI are based from the results of the 2005 Annual Survey of Philippine Business and Industry (ASPBI) for manufacturing establishments with average total employment (ATE) of 20 and over.

Non-responding sample establishments are estimated using cold-deck imputation method. Revisions to the preliminary estimates are done upon receipt of actual reports from late respondents.

TABLE 1-A. PRODUCER PRICE INDEX, NOVEMBER - DECEMBER 2008
(2000=100)

TABLE 1-B. PRODUCER PRICE INDEX, NOVEMBER - DECEMBER 2008
(2000=100)

Note:

a/ - new sector in the 2000-based series

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

Source:   National Statistics Office
                 Manila, Philippines