r-revised

Producer Price Index increases at a slower rate

Producer Price Index (PPI, 2000=100) for the manufacturing sector slightly went up by 0.1 percent in July 2011, according to the preliminary results of the monthly Producer Price Survey. Twelve sectors posted increments with double-digit increases exhibited by petroleum products (27.9%) and basic metals (11.7%). However, decreases in prices were observed in seven major sectors led by furniture & fixtures (-32.79%). Refer to Tables 1 and 1-B.

On a monthly basis, PPI slid to -2.1 percent in July 2011 mainly brought about by the significant decrease posted by machinery except electrical (-11.2%). On the other hand, increments were observed in four sectors led by furniture and fixtures (16.2%). Moreover, flat growths were manifested by six sectors. Refer to Tables 1 and 1-B.

• Response Rate
  

  The response rate for July 2011 is 84.6 percent, which corresponds to the retrieval of 269 sample establishments’ reports. Refer to Table 2.

  Response Rates for Total Manufacturing
  (In percent)

  July 2011	June 2011            (revised)
  84.6	93.7r

• Technical Notes
  

  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.

  PPI utilizes the Paasche-type method of index computation with weights computed from the production concentration ratio of the Census of Philippine Business and Industry (CPBI)/ Annual Survey of Philippine Business and Industry (ASPBI). The weights are updated as soon as new results of the ASPBI/CPBI are available and applied at the beginning of each survey year.

  Hence, the weights of the major sectors and sub-sectors for the 2009 PPI were computed from the results of the 2006 CPBI for Manufacturing Establishments of total employment of 20 and over, which is the latest census results.

  Moreover, for industry classification, the 2010 PPI utilizes the amended 1994 Philippine Standard Industry Classification. There are 20 major sectors covered by the 2010 PPS with three consisting of subsectors.

  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.

  (Sgd.) CARMELITA N. ERICTA                                                                                                                Administrator

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  TABLE 1-A. PRODUCER PRICE INDEX, JUNE 2011 - JULY 2011
  (2000=100)

  Gainers	Year-on-Year Growth (percent)
  	July 2011	June 2011 (revised)
  Petroleum Products	27.9	20.8
  Food Manufacturing	8.1	8.9
  Basic Metals	11.7	16.5
  Non-Metallic Mineral Products	5.1	5.2
  Rubber and Plastic Products*	4.3	4.8
  Tobacco Products	4.5	4.5
  Textiles	4.0	6.4
  Transport Equipments	0.6	2.0
  Fabricated Metal Products	0.9	-0.1
  Footwear and Wearing Apparel	0.8	-0.3
  Leather Products	0.7	1.4
  Wood and Wood Products	0.1	0.1
  Publishing and Printing	0.0	0.0
  Losers	Year-on-Year Growth (percent)
  	July 2011	June 2011 (revised)
  Electrical Machinery	-6.9	-5.0
  Machinery Except Electrical	-3.2	9.2
  Furniture and Fixtures	-32.7	-40.3
  Miscellaneous Manufactures	-9.7	-11.5
  Beverages	-4.2	-4.3
  Chemical Products	-1.6	0.2
  Paper and Paper Products	-2.5	-1.3

  TABLE 1-B. PRODUCER PRICE INDEX, JUNE 2011 - JULY 2011
  (2000=100)

  Gainers	Month-on-Month Growth (percent)
  	July 2011	June 2011 (revised)
  Petroleum Products	2.7	0.1
  Furniture and Fixtures	16.2	-9.1
  MIscellaneous Manufactures	0.9	-4.8
  Leather Products	0.6	0.4
  Tobacco Products	0.0	0.0
  Publishing and Printing	0.0	0.0
  Wood and Wood Products	0.0	0.0
  Beverages	0.0	-0.6
  Footwear and Wearing Apparel	0.0	-0.4
  Paper and Paper Products	0.0	0.8
  Losers	Month-on-Month Growth (percent)
  	July 2011	June 2011 (revised)
  Machinery Except Electrical	-11.2	9.1
  Electrical Machinery	-1.7	-0.1
  Basic Metals	-5.5	3.6
  Transport Equipment	-1.1	1.5
  Chemical Products	-1.0	0.2
  Food Manufacturing	-0.3	-0.1
  Non-Metallic Mineral Products	-0.6	5.7
  Fabricated Metal Products	-0.8	3.3
  Rubber and Plastic Products*	-0.5	-0.2
  Textiles	-0.5	0.1

  Note:

  * - 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

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  Source:   National Statistics Office
                   Manila, Philippines